How Much Does an LLC Cost in New Mexico
Think starting an LLC has to break the bank? New Mexico might change your mind. Form an LLC in New Mexico for as little as $50.
 |
Here are the following fees to consider:
- Articles of Organization: $50
- Application for Registration: $100
- Business Permits and Licenses: Typically $35/yr
- Business Taxes: 1.7% to 5.9% of taxable income
- Registered Agent: $0, or $100-$300/yr
- Operating Agreement: $0, or up to $500+
- Employer Identification Number: $0, or $50 to $99
- BOI Report: $0, or $25 to $149
- Optional Fees: Up to $3,000+
New Mexico is popular for people who want to form an anonymous limited liability company.
And with its minimal fees, low tax rates, and few requirements, the state is a go-to for savvy entrepreneurs.
The question now is, how much does it cost to form an LLC in New Mexico? Start with the one-time state filing fee below.
Limited time: Get 10% off LLC plans
- Pro package includes: Articles of organization, name check service, operating agreement, federal tax ID, bookkeeping tools, customizable legal documents, unlimited eSignatures for online agreements, and a customizable website.
- Premium package includes: Everything included in pro, plus business attorney guidance, unlimited 30-minute attorney consultations on new topics, LLC formation document changes within 30 days.
Articles of Organization
One-Time Fee: $50[1]
To form an LLC in New Mexico, you must submit the Articles of Organization to the Secretary of State. Once the documents are approved, your LLC will be recognized as a separate legal entity.
A New Mexico LLC's Articles of Organization contains the following information, among other details:[1]
- Limited liability company name
- Registered agent name and address
- Management structure (member- or manager-managed)
You can file the Articles of Organization online, by mail, or in person. Filings made online are typically processed on the same or next business day.
A manager-managed LLC means only the designated manager is responsible for the daily operations. Alternatively, an LLC could be member-managed so all owners share equal responsibility in managing the business.
Foreign Application
One-Time Fee: $100[2]
If you already have an LLC in another state and want to expand your business to New Mexico, register it as a foreign LLC.
To create a foreign LLC in New Mexico, you must file an Application for Registration with the Secretary of State. Don't forget to attach a Certificate of Good Standing from your domestic state
.
New Mexico is one of the few states allowing anonymous LLCs. The process is no different than forming a regular limited liability company, as New Mexico's Articles of Organization do not reveal the LLC's real owners to the public.
Business Permits and Licenses
Annual Fee: Typically $35/yr
New Mexico doesn't have a state-level general business license. Instead, it prefers to leave business licensing requirements to local jurisdictions and specific industries.
In Santa Fe, commercial businesses typically pay a $35 annual license fee, plus a $75 Certificate of Compliance, including fire inspection.[3]
In Albuquerque, $35 is the base fee for all businesses, plus a fire and life safety fee for commercial locations. Fees vary from $35 to $400.[4] You may pay a late renewal fee if you don't renew permits and licenses on time.
The number of permits and licenses your LLC needs depends on its business purpose. Some businesses may be regulated by various governmental offices simultaneously and could renew yearly.
New Mexico doesn't require limited liability companies to file annual reports. That said, you won't pay the Secretary of State annual fees.
Business Taxes
Annual Cost: 1.7% to 5.9% of taxable income[5]
By default, the LLC doesn't pay income tax. Instead, the profits and losses are passed on to the owners, who are then charged an income tax.
The income tax rate in New Mexico is 1.7% to 5.9%.[5] However, rates may vary yearly because the state has no fixed tax.
On top of that, you must also pay federal income taxes.
2024 Federal Income Tax Rates:[6]
| Tax Rate | Taxable Income |
|---|---|
| 10% | $0 to $11,600 |
| 12% | $11,601 to $47,150 |
| 22% | $47,151 to $100,525 |
| 24% | $100,526 to $191,950 |
| 32% | $191,951 to $243,725 |
| 35% | $243,726 to $609,350 |
| 37% | Over $609,350 |
Don't forget the 15.3% federal self-employment tax.[7]
The fees that you'll incur when forming an LLC can be claimed as tax deductions. You can write off the following expenses:
Optional Fees
While the fees below are generally optional, some are unavoidable depending on your business needs.
For example, obtaining a Certificate of Good Standing is often necessary when opening an LLC bank account.
| New Mexico LLC Optional Fees | Cost |
|---|---|
| Registered Agent Services | Up to $300+ |
| Change of Registered Agent | $20 |
| Operating Agreement | Up to $500+ |
| Employer Identification Number | $50 to $99 |
| BOI Report | $25 to $149 |
| LLC Name Reservation | $20 |
| Articles of Amendment | $50 |
| Certificate of Good Standing | $25 |
| Certified Copy of Documents | $25 + $1 per page |
| Website Domain | $10 to $20 |
| Business Insurance Premiums | Varies |
The New Mexico Secretary of State does not offer expedited services for LLCs. However, filings made online and in person are typically processed on the same or next business day. Meanwhile, filings by mail typically take up to four weeks.
Registered Agent Services
Annual Cost: $0, or $100-$300/yr
In New Mexico, you must have a registered agent to receive business and legal documents for your LLC. This includes government notices, tax forms, and annual reporting forms.
You can technically be your LLC's registered agent—as long as you're at least 18 and have a physical street address in New Mexico. You must also be available to receive documents during business hours.
However, your address will be public record. So many LLCs like to hire a registered agent service to keep their personal details private. These services usually charge $100-$300 per year to be your registered agent.
No, you don't need an attorney to form an LLC in New Mexico. You can form on your own or hire a formation service to help you.
Change of Registered Agent
Cost: $20[8]
In New Mexico, an LLC can change its registered agent's details by filing a form with the Secretary of State. Changes include the registered agent's name and address.
In New Mexico, the Amended Articles are used to change the business name, address, and other details. The Change of Agent form is focused solely on changes regarding the registered agent.
Operating Agreement
Cost: $0, or up to $500+
LLCs in New Mexico are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.
An LLC operating agreement contains the following:
- The roles and responsibilities of each member
- How new or departing members will be treated
- How business profits and losses will be divided
Ideally, you should already have a signed Operating Agreement before forming an LLC in New Mexico. But if your LLC is already formed, you can always draft it yourself after.
Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.
You can write your own with free online operating agreement templates. If you want a professional to create it for you, LLC services usually offer this as a part of their packages for much less than attorney costs.
Employer Identification Number
Cost: $0, or $50 to $99
Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.
You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:
- Northwest Registered Agent: $50
- Bizee: $70
- ZenBusiness: $99
Single-member LLCs in New Mexico don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.
Yes. Separating your LLC's finances from personal assets is a requirement of liability shielding. Use a separate bank account to accept payments and pay business expenses to prevent piercing the corporate veil .
BOI Report
One-Time Cost: $0, or up to $149
The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 90 calendar days of your LLC's formation.[9]
It includes information about the LLC's beneficial owners, including name, birth date, and address.
FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:
- Northwest Registered Agent: $25
- LegalZoom: $149
- ZenBusiness: $149
You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.
Name Reservation
Cost: $20[10]
You can reserve your desired name first if you've already got a business name but aren't ready to form an LLC. This will prevent others from using that name for 120 days.[10]
If you need more time, renew the name reservation for the same fee and get another 120 days.
Don't forget to review New Mexico's naming regulations. For example, an LLC name must include LLC, Ltd., or similar.
A trade name (also known as "Doing Business As" or DBA) is often used by businesses for branding purposes. It's also ideal if you want to use a name that doesn't have an "LLC" at the end.
New Mexico does not regulate the use of DBAs, so you don't have to pay the state to use another name to do business. Just do due diligence to ensure the DBA you want isn't already being used by another business in the state.
Articles of Amendment
Cost: $50[11]
Your New Mexico LLC's Articles of Organization contains specific details about your business. Should these details change, you must file an amendment to the Secretary of State.
File the Articles of Amendment if you:
- Change the LLC name
- Have a new principal address
- Modify the management structure
Certificate of Good Standing
Cost: $25[12]
A Certificate of Good Standing is an official document by the Secretary of State. It verifies that your LLC is updated with all state filings and has paid all its fees and taxes.
You might need a Certificate of Good Standing to:
- Open a bank account
- Apply for business loans
- Qualify for business insurance
- Conduct business as a foreign LLC
Contact the Secretary of State to ask why your LLC is in bad standing. The most common reasons include:
- Failure to file an amendment to update your business information
- Failure to renew business permits and licenses
- Not having a registered agent in New Mexico
Certified Copies
Cost: $25 + $1 per page, max $10
Certified copies of documents verify that your LLC is legitimate and that its details are accurate.
You might need these for circumstances like opening a business bank account or expanding your LLC in another state.
Additionally, some LLCs keep certified copies of their initial Articles of Organization and amendments (if any) for recordkeeping purposes.
Business Website Domain
Annual Fee: $10 to $20
A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Business Insurance Premiums
Most businesses in New Mexico with three or more employees must have a worker's compensation insurance. You can purchase from a private insurer, self-insure, or join the New Mexico Workers' Compensation Assigned Risk Pool.
Your LLC might also be required to get other types of insurance:
- General liability insurance
- Commercial property insurance
- Professional liability insurance
- Cyber liability insurance
The cost depends on factors like the number of employees, the risk level of your industry, and your past insurance claims.
Bottom Line
It's easier to form an LLC in New Mexico than in other states because it has fewer requirements and cheaper filing fees.
You can form an LLC in New Mexico for as low as $50 and use a DBA at no cost. There is no annual report, so the only annual fees you must budget for are taxes, business permits, and registered agent services (if any).
Limited time: Get 10% off LLC plans
- Pro package includes: Articles of organization, name check service, operating agreement, federal tax ID, bookkeeping tools, customizable legal documents, unlimited eSignatures for online agreements, and a customizable website.
- Premium package includes: Everything included in pro, plus business attorney guidance, unlimited 30-minute attorney consultations on new topics, LLC formation document changes within 30 days.
Set Up Your LLC - $0 + State Fees
- Free business plan included (no credit card required)
- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
Business Formation Service - $39 + State Fees
- Form Your LLC, Corporation, or Nonprofit Today
- A Fully-Formed Business
- Registered Agent Service
- Business Address
- Mail Forwarding
- Privacy by Default
Starter - $0 + State Filing Fees
- Includes 1 optional free year of Worry-Free Compliance that renews at $199/year
- Standard filing speed
- 100% accuracy guaranteed
- Other services are available with additional costs
That said, the total cost of forming an LLC in New Mexico will increase depending on the additional services, documents, and licenses you need. Ultimately, it's never a bad idea to set aside an extra budget for unexpected fees.
- Alabama LLC
- Alaska LLC
- Arizona LLC
- Arkansas LLC
- California LLC
- Colorado LLC
- Connecticut LLC
- Delaware LLC
- District of Columbia LLC
- Florida LLC
- Georgia LLC
- Hawaii LLC
- Idaho LLC
- Illinois LLC
- Indiana LLC
- Kansas LLC
- Kentucky LLC
- Louisiana LLC
- Maryland LLC
- Massachusetts LLC
- Michigan LLC
- Minnesota LLC
- Mississippi LLC
- Missouri LLC
- Montana LLC
- Nebraska LLC
- Nevada LLC
- New Hampshire LLC
- New Jersey LLC
- New Mexico LLC
- New York LLC
- North Carolina LLC
- North Dakota LLC
- Ohio LLC
- Oklahoma LLC
- Oregon LLC
- Pennsylvania LLC
- Rhode Island LLC
- South Carolina LLC
- South Dakota LLC
- Tennessee LLC
- Texas LLC
- Utah LLC
- Vermont LLC
- Virginia LLC
- Washington LLC
- West Virginia LLC
- Wisconsin LLC
- Wyoming LLC
References
- ^ New Mexico Secretary of State. Limited Liability Company Formation, Retrieved 09/09/2024
- ^ New Mexico Secretary of State. Application for Registration, Retrieved 09/09/2024
- ^ City of Santa Fe. Fees associated with business licenses, Retrieved 09/09/2024
- ^ City of Albuquerque. Business Registration FAQs, Retrieved 09/09/2024
- ^ New Mexico Taxation & Revenue. Personal Income Tax Rates, Retrieved 09/09/2024
- ^ IRS. Federal Income Tax Rates and Brackets, Retrieved 09/09/2024
- ^ IRS. Self-employment tax (Social Security and Medicare taxes), Retrieved 09/09/2024
- ^ New Mexico Secretary of State. Registered Agent Change, Retrieved 09/09/2024
- ^ Financial Crimes Enforcement Network. Beneficial Ownership Information, Retrieved 10/02/2024
- ^ New Mexico Secretary of State. Name Reservation, Retrieved 09/09/3034
- ^ New Mexico Secretary of State. Articles of Amendment, Retrieved 09/09/2024
- ^ New Mexico Secretary of State. Certficate of Good Standing, Retrieved 09/09/2024
Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
|
|
| ||||||
|
|
|
