How to open your LLC in New Mexico?
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[seopress_breadcrumbs]Opening an LLC in New Mexico is a great option for foreigners who want to open their LLC in the United States, in a state where the costs of opening the LLC are low ($50 and no annual report is filed), the management and maintenance of the LLC is easy and where anonymity is a priority.
If you are considering the option of registering your LLC in New Mexico, but you still don't know if it is the best option for you, or if you have doubts about the steps to follow to open it, don't worry. In this complete guide, we will guide you step by step with everything you need to know before creating your LLC in the state of New Mexico. Let's get started!
Article indexWhy open an LLC in New Mexico?
There are several reasons why opening an LLC in New Mexico may be a great option for you:
Anonymity
The Secretary of State does not ask for the names of LLC members or managers. Each LLC is filed using the name of an organizer. This keeps your information out of the Articles of Organization and prevents your name from being publicly associated with your LLC data or in the state database. However, anonymity is optional. If you wish, you can request that your information be published in state databases.
Although your data is anonymous, this does not mean that you do not have to comply with tax obligations, both in the United States and in your country of residence.
There is no annual report
The costs of opening an LLC in New Mexico are among the cheapest. There is a one-time $50 filing fee and then no annual fees to pay to the State of New Mexico. Unlike most other states, New Mexico does not require LLCs to file the annual report, which tends to have a high cost in other states. However, New Mexico requires LLCs to file an “Income and Information Return for Pass-Through Entities (PTE).”
These low fees make New Mexico a popular destination for creating holding companies or for small businesses looking to reduce expenses.
everything is online
You do not need to visit New Mexico or the US to establish your LLC in New Mexico. There are no Residency Requirements. Opening a Limited Liability Company in New Mexico is easy since everything can be done online.
Corporate Veil
One of the main advantages of the LLC is limited liability. The company's creditors cannot pursue the owners personally in the event of an accident or legal suit, for example. By opening an LLC in New Mexico, you do not put your personal assets at risk, separating them from those of the company.
Attractive Taxation
The IRS provides interesting tax benefits to New Mexico LLC businesses. There are reductions on income taxes, social security, medicaid and other payments to the government. If your LLC is “Foreign Owned” and non-ETBUS, this does not apply, since LLCs are taxed transparently, that is, the members are responsible for paying personal taxes on the LLC's income.
Who can open an LLC in New Mexico?
LLCs in the state of New Mexico can be opened by anyone in the world, regardless of nationality or residence, who is over 18 years old and has a valid passport.
How to open an LLC in New Mexico?
Now that you know that New Mexico is the state you prefer when open your LLC in the United States and that you meet the requirements to open it, let's see the stages that must be followed to have an operational LLC in New Mexico.
1. Choose the name of your LLC
Defining the name of your LLC will be the first stage to follow before you can move forward with its registration. Although it is also important to consider the brand image when naming your LLC, even though as a brand, you can have a different commercial name than your tax entity. Names must comply with the New Mexico State of New Mexico naming requirements for LLCs:- Your business name must include the words Limited Liability Company, LLC, or L.L.C.
- Your name must be unique. It cannot be registered by another company in New Mexico. If you already have a business name idea and want to evaluate its availability in New Mexico, you can do so in this LLC name validator.
- The company name cannot contain words used to name a government agency (i.e. Department of State, CIA, FBI, Treasury, etc.)
- Certain words are restricted (bank, lawyer, credit union, etc.) and may require additional documentation and licensing procedures to be used.
2. Choose the registered agent
It doesn't matter if you decide to register your LLC in Delaware, open it in Florida, create it in Wyoming or New Mexico, every LLC must have a registered agent. A registered agent is basically a person designated to receive official documents on behalf of the LLC. Once the registered agent receives the documents, they are in charge of transferring them to the owners of the LLC.
When you form your LLC, your registered agent must provide a statement to the Secretary of State confirming that you accept the position.
You or any employee may act as a registered agent, as long as you are a resident of New Mexico and have a physical address within the state. Asigning a trusted registered agent is essential, because if the state of New Mexico cannot find you, it could revoke your LLC after just 30 days.
For this reason, we recommend using with these recommended companies, which are responsible for registering your LLC and providing you with registered agent services, with annual renewal
3. Submit the "Articles of Organization" form
The Articles of Organization are a document that officially constitutes your LLC, providing essential information about it. To prepare, you will typically need the following information:
- The name of your LLC.
- The name and address of your registered agent.
- The effective date of filing of the articles.
- The purpose of the LLC.
- The address of the LLC's principal place of business and mailing address.
- Whether the LLC will have a single member or multiple partners.
- The duration of the LLC. It can be perpetual
- Management structure: Will its members manage the LLC or will managers be appointed?
4. Write your operating agreement
An operating agreement is basically an agreement on the functioning and operations of the LLC between the members. This document lists the details of the financial, legal and management rights of all members of the LLC: dividend distribution, abandonment clauses, non-compete clauses, capital contributions...
Your New Mexico LLC is not required to have an Operating Agreement, but having one can help you avoid conflicts and maximize control over your operations. Without an Operating Agreement, your business is governed according to the default rules under New Mexico law. If the latter do not adapt to your business, an Operating Agreement gives you the opportunity to adapt them.
What you include in your operating agreement depends on you, your partners and the specific needs of your business. Here we have a free template, which will allow you to have a good basis on which to write your Operating Agreement. .
Download Operating Agreement template5. Get an EIN
The last important step is to obtain an Enterprise Identification Number (EIN) from the IRS to pay taxes, apply for business resources, and be able to open a business bank account, among other things. Single-member LLCs that do not have employees nor wish to have them are the exception.
EINs are free and available on the IRS website.
Delegate the creation of your LLC in New Mexico and avoid all these complex processes
What to do after registering my LLC in New Mexico?
Registering your LLC is just the beginning. Once you have carried out all the previous steps, there are some points that we recommend that you take into consideration.
Open a bank account dedicated to your New Mexico LLC
Having personal assets separated from company assets is essential to benefit from the protection of the corporate veil offered by LLCs in New Mexico.
For this, it is essential that you open a business bank account, 100% dedicated to the activities of your New Mexico LLC.
In addition, by having an exclusive bank account for your business, you will be able to take advantage of other additional benefits such as simple and centralized accounting, which will save you a lot of time when filing taxes or tax reports.
The recommended banks for your business account as a foreigner from the USA are Mercury, Relay, Revolut, AirWallex, Wise, Bank of America, Chase.
Plan the taxation of your New Mexico LLC
Although there is no annual report in New Mexico LLCs, you have other tax obligations to comply with.
- You will have to file the annual return to the IRS, which is a declaration of your LLC's income. This must be done before March 15 by completing form 1065 if your LLC is multi-person. If the LLC is a sole proprietorship, completing Form 1120 and 5472 by April 15.
Beware, this is not the same as paying taxes. Es simplemente declarar ingresos.
- También existen impuestos a la venta (Sales Tax), únicamente si tienes clientes de Estados Unidos. In that case, apply the tax rate of your client's business state. New Mexico has a sales tax (Sales Tax) of between 5.1% to 9.1% depending on the county
- If you plan to have employees in the USA, there are also employer taxes (Unemployment Insurance Tax, Employee Withholding Tax).
Meet your annual obligations
Your LLC will have obligations to comply with every year, such as the renewal of the Registered Agent.
As we said before, if your LLC does not have a registered agent, it can be dissolved within 30 days by the State of New Mexico.
Then, there is the annual declaration to the IRS that we mentioned in the previous stage.
Your registered agent will be responsible for notifying you of these dates!
Apply for Licenses
For certain types of businesses, you may need licenses from the state of New Mexico, your locality, or even the federal government to operate legally. Find out here about the licenses required according to the type of business you have (Alcoholic Beverages, Cannabis, Tobacco, Finance, Construction...).
Do you still have questions about registering an LLC in New Mexico?
What is an LLC?
A limited liability company or LLC is a business structure in which the company is legally separated from the owner or owners.
The LLC type company then protects its physical members against legal responsibilities, and offers fiscal transparency, that is, taxes are not paid by the company, but by its shareholders as natural persons. If there are no members of the LLC with American nationality, taxes will not have to be paid in the USA.
How much does it cost to open an LLC in New Mexico?
Opening an LLC in New Mexico has a $50 filing fee. Take into account the cost of hiring a registered agent if you want to outsource that service.
How long does it take to open an LLC in New Mexico?
The approval of an LLC by the State of New Mexico can take between 2 to 3 weeks. You can reduce it to 6-8 days for an additional $50, or 3-4 days for an additional $100.
What are the obligations of an LLC in New Mexico for Non-Resident?
A Non-Resident New Mexico LLC must:
- File the annual income tax return to the IRS by completing
- Renew your registered agent every year
As you can see, the obligations of an LLC in New Mexico are few and quite simple to handle. Because of this, it is a very popular state to open an LLC.
How many members can an LLC have in New Mexico?
There is no minimum or maximum limit for the number of owners of an LLC in New Mexico. LLCs can be categorized as “Single Member”, that is, with a single member or have dozens of partners if desired.
What types of businesses choose to open an LLC in New Mexico?
New Mexico has the advantage of being one of the states where it is cheapest to open an LLC, and which places a lot of importance on anonymity. These are the businesses that usually choose to open an LLC in New Mexico:
- Digital Marketing
- Online courses and trainers
- Ecommerce
- Website editing
- Dropshipping
- Software development companies
- Outsourcing companies
- Trading
- Real Estate
- Consulting for foreign clients
- Freelancers
Are New Mexico LLCs required to file an annual report?
Unlike most states, New Mexico LLCs are not required to file an annual report.How to dissolve a New Mexico LLC?
If you wish to dissolve your New Mexico LLC, you must file the Articles of Dissolution with the Secretary of State and the Public Regulation Commission.
The Articles of Dissolution cost $50.
Written by
Ignacio Navarro
Ignacio Navarro is a Certified Public Accountant, graduated in 2020 from the National University of Tucumán. Founder of Start Companies since 2023, he advises clients worldwide on forming LLCs in the United States and on proper tax filing. His expertise combines legal, tax, and practical knowledge, offering a comprehensive service that spans from company formation to bank account setup and sales platform integration.
