To get started, you’ll need to pick a suitable business name, choose a registered agent, and file your Articles of Organization with the New Mexico Secretary of State ($50 processing fee). While many websites talk about tax rates and advantages of certain states, none of that applies if it’s not the state where you live and do business. For example, if you form an LLC in Nevada, but live in and conduct business in New Mexico, you’ll end up paying New Mexico taxes anyway. This ends up leading to more costs and more headaches with no advantages.
Apart from the aforementioned requirements, it is essential to remember that New Mexico does not have a state-level business tax.
What are the ongoing requirements for maintaining my LLC in New Mexico? You must file an annual report and pay a $50 fee each year. You can also dissolve your LLC by filing articles of dissolution for a $50 fee when it’s no longer needed.
While a physical office isn’t required, you must maintain a registered agent with a physical New Mexico address to receive legal documents. Costs for agents range from $50-300 per year.
Here’s the step-by-step process of starting an LLC in New Mexico:
- Choose a unique business name
- Appoint a registered agent
- File Articles of Organization ($50 fee)
- Obtain necessary licenses and permits
The primary cost is the $50 filing fee. Additional expenses may include registered agent fees, business licenses, etc. Expedited filing services are available for an additional $100-150 fee.
Sole proprietorships in New Mexico don’t need to register with the state. However, you may need to register with your local municipality depending on location. Benefits include liability protection and the ability to open business bank accounts.
In summary, if you live and work in New Mexico, then yes, New Mexico is a good state to start a business.