How to Start New Mexico LLC as a Non-Resident (Guide)
Starting a business in a new state can feel like a daunting task—especially if you’re not a resident. But guess what? Setting up a Limited Liability Company (LLC) in New Mexico as a non-resident might just be one of the smartest moves you make.
Why? Because New Mexico offers a business-friendly environment that’s hard to resist. From low costs to simplified processes, it’s a haven for entrepreneurs looking to expand.
In this guide, I’ll walk you through exactly how to start your New Mexico LLC as a non-resident. Plus, I’ll share some must-know tips to help you hit the ground running. Ready to dive in?”
Key Highlights: New Mexico LLC as a Non-Resident
Starting a New Mexico LLC as a non-resident requires appointing a registered agent, obtaining necessary tax identification numbers, creating an operating agreement, obtaining an EIN, and fulfilling annual obligations. Amongst all the services, I found Northwest registered agent the best for this.
My favorite part about forming an LLC in New Mexico is that it provides strong privacy protection through anonymous LLC formation, and it eliminates the burden of annual reporting and fees, making it a hassle-free and cost-effective option for non-resident business owners – one of my favorite states!
New Mexico LLC Non-resident Requirements
As a non-resident looking to start an LLC in New Mexico, you must fulfill certain requirements.
I explained these requirements below:
Registered Agent
One of the most important requirements for starting an LLC in New Mexico is to appoint a registered agent.
A registered agent is a person or company authorized to receive legal documents for your LLC. This includes important documents such as tax notices, legal summons, and other official correspondence.
To appoint a registered agent, you can choose an individual who is a resident of New Mexico or hire a registered agent service.
Articles of Organization
When filing the Articles of Organization for New Mexico, it’s essential to ensure all required information is accurately provided to the New Mexico Secretary of State. This document formally establishes your LLC and includes details such as your LLC’s name, registered agent, principal office address, and the names and addresses of the LLC’s members or managers.
Here’s the mailing address for the New Mexico Secretary of State:
New Mexico Secretary of State
325 Don Gaspar, Suite 300
Santa Fe, NM 87501
Ensuring all information is correctly filled out and submitted, along with any required fees, will help expedite the formation of your LLC in New Mexico.
Tax Identification
Another important requirement for starting an LLC in New Mexico is obtaining the necessary tax identification numbers.
As a non-resident, you must obtain a Federal Employer Identification Number (EIN) from the IRS. This number is used to identify your LLC for tax purposes.
Additionally, if you plan to hire employees in New Mexico, you must obtain a state tax identification number from the New Mexico Taxation and Revenue Department. This number is used to report and pay state taxes.
Operating Agreement
An operating agreement is a legal document that outlines your LLC’s ownership and operating procedures. While not required by law, an operating agreement is highly recommended as it can help protect your assets and prevent member disputes.
You can create an operating agreement or hire an attorney to draft one for you.
As a foreigner, you can start your LLC in New Mexico without needing a physical office, local employees, a New Mexico bank account, or residency in the state—making it a cool choice for entrepreneurs who can easily establish their business.
Employer Identification Number (EIN)
As mentioned earlier, obtaining a Federal Employer Identification Number (EIN) is necessary for starting an LLC in New Mexico. You can apply for an EIN online through the IRS website.
Annual Obligations
Once your LLC is formed, you must fulfill certain annual obligations to remain in good standing with the state of New Mexico. This includes filing a yearly report with the New Mexico Secretary of State and paying an annual fee.
Critical Note: Here’s What You Do Not Need Initially as a Non-resident Business Owner
Firstly, you do NOT need a physical office in New Mexico to start your LLC. You can operate your business from anywhere in the world. However, suppose you plan to have a physical office in New Mexico. In that case, you may need to register your business with the New Mexico Secretary of State and obtain the necessary permits and licenses.
Secondly, you do NOT need New Mexico-based employees to start your LLC. You can hire employees from anywhere in the world. Suppose you plan to hire employees in New Mexico. In that case, you may need to register your business with the New Mexico Department of Workforce Solutions and obtain the necessary permits and licenses.
Thirdly, you do NOT need a New Mexico bank account to start your LLC. You can use your existing bank account to manage your LLC’s finances. However, if you plan to open a New Mexico bank account, you may need proof of your LLC’s registration with the New Mexico Secretary of State.
Lastly, you do NOT need resident status in New Mexico to start your LLC. You can operate your business from anywhere in the world.
Steps on How to Register an LLC in New Mexico as a Non-resident
Step 1. Selecting Your Business Name (new or existing)
First, I would search the name on the New Mexico Secretary of State’s website to ensure it’s unique and distinguishable from existing businesses on file.
The name you choose for your non-resident LLC in New Mexico must meet these requirements before you can proceed with the registration process.
Step 2. Appointing a New Mexico Registered Agent (I use Northwest)
All LLCs in New Mexico must have a registered agent. A registered agent is a person or company that accepts legal documents on behalf of your LLC.
Northwest Registered Agent is my go-to choice—a reliable and trustworthy registered agent service that can assist me with forming my LLC.
See why Northwest Registered Agent is my top choice in my detailed review and journey.
Besides the fact that I started with them for as little as $39, Northwest Registered Agent provided exceptional support and guidance throughout the entire LLC formation process.
Step 3. Sign up For Northwest Registered Agent
To sign up for Northwest Registered Agent’s services, go to their website and click on the “LET’S GET YOU STARTED” button.
Once you’ve signed up for their services, you’ll have access to their online portal, where you can easily complete the rest of the steps to form your LLC.
Choose your business entity as LLC and select New Mexico (of course!) as your preferred state.
Step 4. Enter Your New/Existing Company Details
After signing up for Northwest Registered Agent’s services, you must enter your new or existing company details. This includes your LLC’s name, physical and mailing address, and other essential information.
If unsure about your business purpose, toggle “Use Generic Business Purpose.”
Northwest Registered Agent allows you to use their address as your business address, eliminating the hassle of securing a separate US address for your company in New Mexico.
Step 5. Enter The Management For Your LLC
You’ll also need to enter the management for your LLC. This includes the members or managers who will run your business. If your business is a one-person show, just stick with one member and use your own name.
Step 6. Fill in Your Contact Details
Next, you’ll need to fill in your contact details, including your email address, phone number, and other information.
You don’t need to scramble for a U.S. contact detail to create your Northwest account. Your local details will work just fine as your point of contact with Northwest.
Step 7. Setup Your Account with Northwest Registered Agent
After entering all your information, you must set up your account with Northwest Registered Agent using your email and preferred password. This will allow you to access their services and complete the following steps to form your New Mexico LLC.
Step 8. Get Your Business Identity (optional)
You can toggle this on to add the Northwest Business Identity option for your LLC. It includes the following, free for 90 days: Domain name registration—1 Free Year, Website hosted by us and owned by you, Business email address, and Business phone.
Step 9. Getting Your Tax ID or EIN – optional
If you want your LLC’s tax ID (EIN), you can do so through Northwest Registered Agent. They will help you complete and submit the necessary forms to the IRS. It’s pretty easy to get this on your own, but if you’d like to include it in your order, that’s also great!
Just toggle on the “Tax ID” and select “Do NOT Have Social Security Number“.
Step 10. Checkout/Payment (Congratulations!)
Finally, you’ll need to check and make payment to complete the process of forming your New Mexico LLC.
Once you’ve done this, congratulations! You can now open a Stripe account and start.
Enter your valid card information, then click Done!
Also read: Top 10 Registered Agent Services Ideal for Non-Residents
New Mexico LLC Non-resident Benefits
Forming an LLC in New Mexico as a non-resident offers several benefits that make it an attractive option for foreign business owners.
Privacy Protection
New Mexico allows for anonymous LLCs, meaning the names of the members and managers do not need to be listed in public records. This provides strong privacy protection for non-resident business owners who may want to keep their personal information private.
In New Mexico, they’ve really got your back when it comes to security for your business. It’s all about creating a safe, confidential space where you can focus on growing your business without worrying about privacy concerns.
No Annual Reporting Requirements
New Mexico does not require annual reports or fees for LLCs, reducing administrative burdens and costs. This is a significant benefit for non-resident business owners who may not be able to travel to New Mexico regularly to fulfill these requirements.
No State Income Tax on LLCs
New Mexico does not impose state income tax on LLCs, which can benefit non-resident business owners. LLCs in New Mexico are only subject to federal income tax, reducing the overall tax burden for non-resident business owners.
Low Formation Fees
The cost to form an LLC in New Mexico is relatively low compared to other states, making it a cost-effective option for new businesses. This especially benefits non-resident business owners starting their businesses on a tight budget.
How Much Does it Cost in Total to Form an LLC in New Mexico as a Foreigner?
The total cost of forming an LLC in New Mexico as a non-resident includes the state filing fee, registered agent fee, and any additional services you choose.
The state filing fee is $50, and the registered agent fee is $125 per year. If you use Northwest Registered Agent, the initial cost to form your non-resident LLC is $114 (excluding an EIN/Tax ID). If you opt for an EIN, the total cost is $314, with the EIN service being a one-time fee.
New Mexico LLC Taxation/Taxes for Non-US Residents – How Does it Work?
As a non-US resident forming an LLC in New Mexico, you will be taxed similarly to domestic LLCs. By default, New Mexico LLCs are taxed as pass-through entities, meaning that the LLC does not pay taxes.
Instead, the profits from the LLC pass through to the taxes of the LLC members. As a member of the LLC, you will pay taxes on your share of the LLC’s income at the self-employment rate of 15.3%, which includes 12.4% for Social Security and 2.9% for Medicare.
Additionally, LLC members will pay New Mexico’s graduated income tax of 1.7% to 5.9%, depending on their total income.
It is important to note that foreign LLCs, formed outside of New Mexico but registered to do business in the state, can also expect to be taxed similarly to domestic LLCs.
This means foreign LLCs doing business in New Mexico will be expected to collect New Mexico gross receipts taxes and any other local taxes.
To ensure compliance with New Mexico LLC tax requirements, LLCs are required to file an Annual Report with the state.
LLCs must also pay applicable taxes, including gross receipts and state income taxes. It is important to stay up-to-date with New Mexico LLC tax requirements to avoid penalties or legal issues.
What’s The Best Bank for Non-US-residents?
When starting a New Mexico LLC as a non-resident, choosing the right bank can be crucial. It’s important to find a bank that offers services that meet your specific needs as a non-US resident. While a few options are available, Mercury is a top choice.
Mercury is a digital bank that offers various services tailored to non-US residents. Its business checking account is easy to open and manage entirely online.
One of the best things about Mercury is that they don’t require a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) to open an account. This makes it a great option for non-US residents who may not have these documents.
In addition to Mercury, there are other notable mentions worth considering. Wise, Relay, and BlueVine are digital banks offering services to non-US residents. Wise is particularly popular for its low fees and easy-to-use platform, while Relay is known for its fast and efficient service. BlueVine offers both business checking and savings accounts, making it a great option for those looking to manage their finances in one place.
Related: Which State is Best for LLC For Non-Residents?
Frequently Asked Questions
Can a non-resident open an LLC in New Mexico?
Yes, non-residents can open an LLC in New Mexico. There are no residency requirements for forming an LLC in the state.
What are the steps for a non-resident to establish an LLC in New Mexico?
The steps for a non-resident to establish an LLC in New Mexico are similar to those for residents. You must choose a name for your LLC, file Articles of Organization with the New Mexico Secretary of State, and obtain any necessary licenses and permits. You may also want to consider hiring a registered agent to handle legal documents on your behalf.
Can I use a registered agent for my New Mexico LLC registration as a non-resident?
Yes, you can use a registered agent for your New Mexico LLC registration as a non-resident. You should do so, as it can help ensure you receive legal notices and other important documents promptly.
What are the annual costs of maintaining a New Mexico LLC for non-residents?
To start a limited liability company in New Mexico, you’ll pay a $50 fee to file Articles of Organization with the New Mexico Secretary of State’s Business Services Division. Other costs include fees for various licenses, business insurance premiums, and potentially the price of registered agent service.
Is a physical presence required in New Mexico to form an LLC as a non-resident?
No, a physical presence is not required in New Mexico to form an LLC as a non-resident. You can complete all necessary steps online or by mail.
What’s the best method to open a non-resident bank account for New Mexico LLC?
The best method for opening a non-resident bank account for New Mexico LLC is to use a digital bank like Mercury. These banks offer online account opening and management, low fees, and no minimum balance requirements.
What are the best states to form an LLC as a non-resident?
New Mexico, Wyoming, Delaware, and Nevada are popular states for forming LLCs as a non-resident. Each state has its advantages and disadvantages, so it is important to research and compare your options before deciding.
Can a non-resident New Mexico LLC owner hire employees in the US?
Yes, a non-resident New Mexico LLC owner can hire employees in the US. However, you must comply with all applicable federal and state employment laws and regulations.
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