How Much Does an LLC Cost in New Mexico? (Filing Fees 2024)

Starting a limited liability company (LLC) in New Mexico can be pretty affordable. The basic cost to form an LLC in New Mexico is just $50 for the initial filing, and best of all, there are no annual reporting requirements, which can help you save even more.

What other costs should you consider?

Beyond the initial filing fee, consider optional expenses like obtaining a Certificate of Good Standing, hiring a registered agent, and drafting an operating agreement to set clear management guidelines.

Are you curious about the specific costs and requirements for forming an LLC in New Mexico?

How Much Does an LLC Cost in New Mexico?

Forming an LLC in New Mexico is generally affordable. The basic cost to file your LLC’s Articles of Organization is $50. This fee is paid to the Secretary of State of New Mexico.

In addition to the filing fees, consider these potential costs:

• Registered Agent Fees: You may need to pay for a registered agent, ranging from $100 to $300 per year.
• Operating Agreement: While not required, creating an operating agreement may incur legal fees if you hire a lawyer.
• Additional Permits: If your business requires special licenses or permits, the costs will vary based on your industry.

And don’t forget these extra considerations:

• LLC Name Reservation: Reserving your LLC’s name in advance has a small fee, typically around $20.
• Certificate of Good Standing: If you need a Certificate of Good Standing that verifies that your LLC complies with state regulations, it usually costs about $25.

In New Mexico, forming an LLC can be a flexible and advantageous choice for many business owners. Understand all potential costs to ensure you are prepared as you start your business.

LLC Costs in New Mexico (Formation Fees)

Here is a breakdown of the costs associated with forming and maintaining an LLC in New Mexico:

New Mexico LLC Requirements	Cost
LLC Business Name Cost	$0
Articles of Organization	$50
Operating Agreement (optional)	$0 (with Northwest)
EIN Number	$0 (free from IRS)
Annual Report	$0 (no annual fee)
LLC Name Reservation Fee (optional)	$20
Certificate of Good Standing (optional)	$25
Foreign LLC Registration (optional)	$100
Fictitious Name (DBA) (optional)	$25
Taxes	$0 but varies by business type
State Business License Fee	Varies
Registered Agent Services	$0-$125 (Northwest)
LLC Formation Services	$39
Total LLC Costs in New Mexico	$425 – $824

Total LLC costs in New Mexico range from $50 to approximately $300. If you do everything yourself and skip the optional extras, you might only spend around $50. However, if you decide to pay for additional services and requirements, your costs could go up to between $200 and $300.

The first mandatory expense is the $50 fee for filing the Articles of Organization, which is essential for officially forming your LLC. You’ll also need to consider that New Mexico has no annual report fees, making it a budget-friendly option.

Now, let’s discuss the optional costs.

Obtaining an Employer Identification Number (EIN) is free from the IRS. While having an Operating Agreement is recommended, you can obtain it at no cost if you use services like Northwest.

If you want to reserve your LLC name, that will cost you $20. You can also obtain a Certificate of Good Standing for $25, and if you plan to register a foreign LLC in New Mexico, that incurs a fee of $100. If you wish to operate under a different name (DBA), you must pay an additional $25.

Regarding registered agent services, you can either act as your agent at no cost or hire a professional service, which typically ranges from $100 to $300, depending on the provider.

If you choose to use an LLC formation service, that typically costs around $39. Additionally, remember that taxes can vary based on your specific business activities, and the state business license fee can also differ depending on your industry.

New Mexico LLC Business Name Cost ($0)

When forming an LLC in New Mexico, you can reserve your business name at no cost. This is a great benefit for entrepreneurs.

To reserve your name, you must submit an Application for Reservation of a Domestic LLC Name. This form goes to the New Mexico Secretary of State. You can mail it to their office in Santa Fe.

Make sure you choose a unique name. It should not be the same as any existing LLC in New Mexico. The New Mexico Secretary of State’s website allows you to check the availability of the name.

If you decide to file your LLC, you will eventually pay a $50 filing fee for the Articles of Organization. This is a one-time fee when you officially create your LLC.

New Mexico Articles of Organization ($50)

You must file the Articles of Organization document to start an LLC in New Mexico. This is a key step in officially creating your LLC.

The filing fee for the Articles of Organization is $50. This fee is a one-time payment when you submit your documents to the New Mexico Secretary of State.

Filing can be done online through the state’s Business Services Division. New Mexico LLC processing time may vary. If you file online, expect the approval process to take 1-3 business days. If you file by mail, the process will take 4-6 weeks.

You may also need to check if there are any specific requirements or additional documents needed depending on your business type. Be sure you have all the necessary information ready for a smooth application process.

LLC Operating Agreement Cost in New Mexico ($0 with Northwest)

An operating agreement is important when you form an LLC in New Mexico. It outlines the management structure and operating procedures of your LLC.

Creating an operating agreement can be done at little to no cost. If you work with Northwest Registered Agent, they provide the operating agreement for free. This can save you money, as some service providers charge for this document.

If you draft the operating agreement yourself, you may incur no costs. Consider your needs and preferences when deciding whether to use a service or draft it yourself. By leveraging free options, like those from Northwest, you can keep your costs low while ensuring your LLC is set up correctly.

New Mexico Registered Agent Fee ($0-$300/year)

You need a New Mexico registered agent when forming an LLC in New Mexico. This agent is responsible for receiving legal documents on behalf of your business.

If you decide to act as your registered agent, there is no fee. You simply provide your name and address. This can be a good option if you want to save money.

Many business owners choose to hire a registered agent service. These services usually charge between $100 and $300 per year. They provide additional support and keep your personal information private.

For example, LegalZoom charges about $249 annually, while ZenBusiness offers services for $199 annually. This might be worth considering if you want the added convenience of a professional service.

If you opt for Northwest Registered Agent, they offer a competitive rate. After the first year, they charge $125 annually, free if you use them to form your LLC. This makes them an attractive choice for many new business owners.

EIN Cost in New Mexico ($0 from the IRS website)

Getting an Employer Identification Number (EIN) in New Mexico is free. You can apply directly through the IRS website without any fees.

The EIN is essential for your LLC, especially if you plan to hire employees or open a business bank account.

Here’s how you can apply:

• Go to the IRS website.
• Complete the application form (Form SS-4).
• Submit the form online.

You will receive your EIN right away after completing the application.

New Mexico LLC Annual Report ($0)

In New Mexico, LLCs do not need to file an annual report. This requirement differs from other states, where LLCs must submit regular documents and pay a fee.

Since there is no annual report to file, you can save time and money. You will not have to worry about submission deadlines or related costs.

While there are no annual filing requirements, you must keep your business records updated. This includes maintaining accurate information about your LLC, including its members and registered agents.

If your LLC has employees, you still have some tax obligations. You will need to handle state income tax withholding as required. Be sure to stay current with those filings.

Remember, even without an annual report, it’s essential to comply with local regulations and maintain good standing. This helps protect your business and ensures you remain compliant with state laws.

Fictitious Name/DBA Cost in New Mexico ($0)

You can use a DBA (Doing Business As) name in New Mexico, but there is no formal filing or registration process. This means you can operate under a different name from your legal business name without incurring fees.

Since filing for a DBA is not required, the cost remains $0. This allows you to market your business in a way that may resonate better with your customers while keeping budget concerns in check.

You simply start using the name you choose. It’s wise to ensure that another business is not already using the name you select. This helps you avoid potential legal issues down the road.

LLC Name Reservation Fee in New Mexico ($20)

You might want to reserve your business name when starting an LLC in New Mexico. This ensures that no one else can use that name while you prepare your application.

The fee for reserving a name is $20, paid to the New Mexico Secretary of State.

You can reserve your LLC name either online or by mail. If you choose to file online, the process is quick and convenient. The name reservation is typically adequate for 120 days. You can finalize your LLC formation without worrying about someone else taking your chosen name during this time.

By reserving your LLC name, you take an important step to protect your brand in New Mexico. This small investment can save you time and complications in the long run.

New Mexico Certificate of Good Standing ($25)

A Certificate of Good Standing is an important document for your LLC in New Mexico. It shows that your business is authorized to operate in the state and has met all legal requirements.

You can obtain this certificate online for $25. Most banks and lenders require it when you open a business bank account. It proves that your LLC is in good standing with the state.

To get your Certificate of Good Standing, you must provide basic information about your LLC, including your business name and possibly your business ID number. The process is usually quick and straightforward.

Having this certificate can help you in various ways. It adds credibility to your business and makes securing loans or contracts easier. You may also need it to expand your business or apply for permits in other states.

New Mexico Foreign LLC Registration Fee ($100)

To register a foreign LLC in New Mexico, you must pay a $100 filing fee. This fee goes to the New Mexico Secretary of State.

To start the process, you must submit a document called the Foreign Limited Liability Company Application for Registration. This application is essential for any out-of-state business in New Mexico.

This fee allows your foreign LLC to conduct business legally in the state. New Mexico’s attractive business environment makes it a popular choice for many entrepreneurs.

Don’t forget to appoint a registered agent in New Mexico. This is crucial in ensuring your business remains compliant and has a reliable point of contact for official matters.

New Mexico LLC State Business License ($0 but varies)

In New Mexico, no single statewide business license applies to all companies. Instead, you are required to obtain a New Mexico Business Tax Identification Number. This registration covers various taxes, including gross receipts tax, payroll withholding, and industry-specific tax programs.

You might also need special state licenses or permits depending on your LLC’s activities. For example, extra licenses may be necessary if your business deals with hazardous materials or controlled substances.

Moreover, if you plan to work as a construction contractor, you must meet additional licensing requirements. Always check the specific regulations that apply to your industry to ensure compliance.

New Mexico LLC Taxes (varies)

As an LLC owner in New Mexico, you must know of several taxes that may apply to your business. Here are the key taxes you might encounter:

• Federal Income Tax: This applies to your business income on a federal level.
• State Income Tax: LLCs in New Mexico must also pay state income tax based on their earnings.
• Gross Receipts Tax: You will owe this tax if you sell or lease property or perform certain services. The rates range from 5% to 9%.

If your LLC has employees, you’ll need to handle additional taxes:

• Payroll Tax: This includes federal and state taxes based on employee salaries.
• Withholding Taxes: You are required to withhold this from your employees’ wages.

Depending on how you operate in New Mexico, you may also need to pay Compensating Taxes based on the use of goods or services within the state.

Most small business owners spend between $300 and $900 per year on accounting services. An accountant can help you determine the exact types and amounts of taxes you need to pay, keeping your business compliant.

New Mexico LLC Reinstatement Fee ($25)

If your New Mexico LLC needs to be reinstated, there is a fee of $25. This fee is necessary for the application to revive your business.

You must submit a written request to the New Mexico Secretary of State to start the reinstatement process. This request must clearly state your intention to reinstate the LLC.

In addition to the fee, be ready to provide any required documents. This may include records that prove your business was in good standing before it was inactive.

It’s important to act quickly if your LLC has been inactive. Delays in reinstatement could lead to additional complications or fees later on.

Remember, your LLC cannot legally operate without reinstatement. To avoid any issues, make sure you follow all required procedures.

New Mexico LLC dissolution fee ($25)

When you decide to dissolve your LLC in New Mexico, a fee is charged, and it is set at $25.

This fee is required when you file the Articles of Dissolution with the New Mexico Secretary of State. It is a one-time payment made during the dissolution process.

Please pay this fee directly to the government. Failure to do so could delay your dissolution or lead to additional complications.

You can pay the fee through various methods depending on how you submit your Articles of Dissolution. Options might include online payment or sending a check by mail.

New Mexico LLC Change of Registered Agent fee ($20)

Changing your registered agent in New Mexico involves a fee of $20. This fee is standard for Limited Liability Companies (LLCs) and is required when you submit the necessary paperwork.

To make the change, you must complete a Statement of Change of Registered Agent form, which can be submitted to the New Mexico Secretary of State by mail or in person.

Please include payment along with the form. When processing the form, you can pay this fee by check or credit card.

It is important to keep your registered agent information updated. Your registered agent is responsible for receiving legal documents on behalf of your LLC, so having accurate information is crucial for compliance.

What is the Cheapest Way to Start New Mexico LLC?

Starting an LLC in New Mexico can be done in a few ways. You can create it online, use a service, or hire a lawyer. Each method has different costs.

• Online Filing: The cheapest option is to file the Articles of Organization online through the New Mexico Secretary of State. The filing fee is $50 for residents. If you are not a resident, the fee is $100. This method saves you money since there are no additional service fees.
• Using a Service: You can also choose to use an online service. Popular companies often charge around $29 plus the state fee. While this option is still affordable, it does cost more than filing directly with the state.
• Hiring a Lawyer: Hiring a lawyer is generally the most expensive option. You may pay several hundred dollars for their services. This option is best if you need personalized help but is not the cheapest.

The cheapest way is the online filing method. Not only do you pay a low fee, but you also have complete control over the process. While online filing is straightforward, you might feel unsure if you have never done it. Mistakes can lead to delays or additional costs.

For most people, filing online makes sense. It is cost-effective, quick, and simplifies the process. Just be sure to read through the requirements carefully to avoid any errors.

Should You Use an LLC Formation Service in Mexico? (here’s why)

When thinking about forming an LLC in Mexico, you might wonder if using an LLC formation service is the right choice for you. These services can simplify the process, helping you focus on your business rather than paperwork.

• Privacy: Many services, like Northwest Registered Agent, offer privacy protections for your personal information, keeping your details confidential and safeguarding your identity.
• Peace of Mind: With expert and attorney support available, you can have your questions answered and reduce stress. This will make the process smoother and ensure you don’t miss important deadlines or face compliance issues.
• Paperwork Assistance: These services handle all the legal requirements and paperwork, saving you time and helping you avoid costly mistakes.

However, consider the cost of these services. While they can save you time and offer support, the fees range from $50 to $300, depending on your chosen service. It’s essential to weigh these costs against your budget.

In short, if you value efficiency and expert support, using an LLC formation service could be beneficial. Just make sure to find a service that fits your needs and budget.

Frequently Asked Questions

How much does it cost to dissolve an LLC in New Mexico?

Dissolving an LLC in New Mexico requires filing a Statement of Termination, which costs $25. However, you should ensure that all taxes and fees are paid before filing for dissolution to avoid complications.

How much does it cost to reinstate an LLC in New Mexico?

Reinstating an LLC in New Mexico typically costs $25. You must also file for reinstatement and resolve any outstanding fees or penalties before the state approves the reinstatement.

Do I need a business license to have an LLC in New Mexico?

In New Mexico, whether you need a business license depends on the nature of your business. Some local jurisdictions require permits or licenses, while others do not. Always check with your local government for specific requirements.

Do I need an attorney to form an LLC in New Mexico?

Hiring an attorney is not mandatory to form an LLC in New Mexico. Many people successfully file on their own using online resources. However, an attorney can provide valuable guidance, especially for complex business structures.

Should I hire an LLC formation service in New Mexico?

An LLC formation service can simplify the process, especially for first-time business owners. These services often handle paperwork and compliance for a fee, saving you time and reducing the risk of errors.

Are there penalties for paying my fees late in New Mexico?

Yes, paying fees late can result in penalties. The New Mexico Secretary of State assesses late fees for delayed filings. Staying on top of your financial obligations is essential to avoid additional costs.

What happens if I do not file my New Mexico LLC annual report?

Failing to file the annual report can lead to administrative dissolution of your LLC. This means your business may lose its good standing and might have to go through a reinstatement process to operate legally again.