Forming a Corporation
Bylaws are the initial operating rules of your corporation. We can help you create bylaws to fit your company’s specific needs. To form a nonprofit in New Mexico: Name your organization, recruit incorporators and directors, and appoint a registered agent.
Having no bylaws can jeopardize your nonprofit’s autonomy. Adopting bylaws with rules specific to your organization will empower your members.
If forming a New Mexico corporation, one required step is drafting bylaws detailing the purpose, structure and operations. Bylaws are dictated by your board of directors. This document also outlines ownership rights of shareholders and how officers and directors are elected and removed.
Benefits of bylaws include governing, guiding, and protecting your corporation’s processes.
New Mexico does not require filing bylaws with the state but creating them is required by state law when seeking 501(c)(3) status.
Before using a business name, search whether another New Mexico company is using your desired name.
Key provisions to include in corporate bylaws may be the corporation’s purpose and office, roles of directors and officers, appointing and removing directors and officers, and procedures for meetings and amending bylaws.
After initial bylaws are set, the board of directors has power to amend them unless stated otherwise in the articles of incorporation. New Mexico law requires annual meetings and corporate bylaws.
Requirements in Texas
Are bylaws required in Texas? Yes. Corporate bylaws must be adopted by Texas corporations as per § 21.057. This is considered mandatory.
These bylaws are typically created immediately after incorporation, but the corporation is not obligated to file them with the appropriate state business registration agency in Texas, unlike the articles of incorporation. Amendments can be made to the bylaws as necessary by the board of directors with approval from the shareholders.
To file your Certificate of Incorporation, the Texas Secretary of State charges a $300 filing fee. Not all states require corporate bylaws but it’s a good idea for every corporation to have them. Bylaws are an internal corporate document that set out the basic ground rules for operating your corporation.
Here is an outline of the steps you need to follow in order to form a corporation in Texas. Choose a business name for the corporation and check for availability.
Texas law also requires all instruments of dedication to be recorded with the county clerk’s real estate records in all counties where the POA is located.
How can I find HOA bylaws in Texas? Search Texas Recorded Documents – Visit the county recorder’s office where the property is located to find an association’s Statement of Covenants, Conditions and Restrictions (CC&Rs), amendments to CC&Rs, bylaws, lien notices, HOA notices, dishes, maps, and other communities.
If your property is used for rental purposes, the IRS considers HOA fees to be tax deductible as a rental expense.
Establishing a Corporation in New Mexico
You will need to file the New Mexico Articles of Incorporation to set up a corporation in New Mexico. You can file it by mail or in person with the New Mexico Secretary of State. The filing cost is $100 for the first 100,000 shares.
You will also need to draft your corporation’s bylaws and appoint its initial director(s), which can be done through an organizational meeting.
Corporate bylaws describe the rules and procedures that will govern the corporation. They are not filed with the Secretary of State. The directors are required to adopt initial bylaws. Bylaws may contain any provision for managing and regulating the corporation’s affairs. Bylaws cannot include anything that is inconsistent with the law or the articles of incorporation.
Some states, including New Mexico, allow certain occupations to form Professional Corporations. In New Mexico, a Professional Corporation is allowed to be formed to provide professional services.
Subject to the availability of different share classes, New Mexico laws does not require corporations to demand set investment for shares.
As an S corporation in New Mexico, you can avoid double taxation on your income. Profits and losses flow through to your personal income tax return, so you only pay taxes once on your income. Forming an S corporation also provides liability protection for its owners.
The New Mexico Secretary of State allows you to reserve a name for up to 120 days by filing a Name Reservation Request.
Forming a corporation in New Mexico is achieved by filing the Articles of Incorporation with the Secretary of State.