New Mexico LLC Formation and Costs
The amount you’ll pay to form an LLC in New Mexico is a $50 filing fee for the Articles of Organization. You can file online or by mail. You must maintain a registered agent with a physical New Mexico address to receive legal documents for your LLC. Our lessons and filing service can help you form your New Mexico LLC correctly and affordably. You can also dissolve the LLC with the state if you no longer need it. Expedited processing is available for an additional fee.
Professional Services and Requirements
You are not required to hire an attorney or accountant. However, you can choose to hire professional services if you want assistance filing paperwork or handling taxes. You do not need to have a physical office for your LLC.
Taxation and Benefits of LLC
What LLC does not pay taxes? An LLC is typically a pass-through entity for tax purposes. This means LLC owners pay income tax, not the LLC itself. By forming an LLC in a favorable tax state, businesses can potentially reduce overall liability and increase profitability. The main benefit is choosing your LLC tax rate by deciding the taxation structure. An LLC avoids double taxation of profits and dividends. Profits and losses run through to the owner’s tax return.
Many LLC owners are self-employed, so taxes aren’t withheld from income. The law requires estimated quarterly tax payments to the state and IRS. While an S Corp LLC still avoids double taxation, it can help owners avoid expensive self-employment taxes. However, S Corps may not suit all LLCs, especially with flexible ownership rules. As a pass-through entity, an LLC’s profits go to owners who then report and pay income and self-employment tax on earnings. This avoids an LLC itself having to file a return or pay taxes. For single-member LLCs, the IRS treats them as sole proprietorships. Profits and losses pass directly through to the owner’s tax return.