How to Form a New Mexico LLC
By Bazal Razzaq
Updated: September 14, 2023, 12:30pm
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- Pick a name for your New Mexico LLC
- Create a business plan for your company
- Elect a registered agent
- Prepare and file your Articles of Organization form with the Secretary of State
- Obtain an EIN(federal employer Identification Number) with the IRS
- Draft an Operating Agreement
- Final Word
- How To Form An LLC In 50 States
- Frequently Asked Questions (FAQs)
Looking to form an LLC in the Land of Enchantment? You’re at the right place! Our detailed guide discovers how you can create a New Mexico LLC in the most efficient way possible.
#1 Pick a name for your New Mexico LLC
Yes, the first and the most basic step to tick mark is choosing a name for your business. Chances are you’ve already shortlisted a few names for your LLC, now you just have to narrow it down to one.
A set of rules need to be followed before picking out a name for your New Jersey LLC, they are:
- The name shouldn’t be the same as any other registered business.
- Avoid misleading the public by including any detail that displays your business as a bank, corporation, or any other type of venture it’s not.
- Completely avoid using terms that suggest any illegal, fraud, or mislead the public. Similarly, you shouldn’t use vulgar or obscene words that may land you in legal trouble.
- Before officially registering your LLC’s name, you can use the Secretary of State’s business name database to check its availability.
- If your LLC provides any professional services like legal or medical, specific requirements might apply. You’ll also have to include designators like “PLLC,” “Professional Limited Liability Company” in your business name.
- There should be no restrictive terms such as “trustee”, “board”, “or insurance” in your NJ LLC name.
- Your LLC name shouldn’t contain any obscene or forbidden words.
- Check that it’s not being used as a domain name to avoid trademark or legal issues. You can also check the US Patent and Trademark Office’s site for federal trademarks to make sure your chosen name is not already in use or trademarked.
- The name should reflect its LLC status, it should end with abbreviations like “LLC”, “L.L.C.”, or “Ltd.” (Most people stick with just LLC)
Still confused? Here’s a complete list of all the naming guidelines and rules your New Jersey LLC should follow.
If you already have the perfect legally compliant name in mind but just aren’t ready to form your LLC officially yet, you can consider reserving your name by filing an application for Reservation of Limited Liability Company Name with the New Mexico Secretary of State. The filing fee is $20 and it needs to be submitted by postal mail to the address listed below,
New Mexico Secretary of State Office at 325 Don Gaspar,
Suite 300, Santa Fe,
New Mexico 87501.
After submission, you can hold your chosen name for up to 120 days.
Note: For those who don’t know, a DBA is basically a pseudonym through which your customers will identify your brand. If you’re not comfortable doing business with your official LLC name(one that’s mentioned in your Articles of Organization form) and would like to use a different, less formal name for your company, a DBA is the correct option! The good news is that unlike most US states, there’s no state or local filing requirement for using a DBA in New Mexico.
It’s important to follow these naming requirements to ensure a smooth registration process for your New Mexico LLC.
#2 Create a business plan for your company
While it’s not an obligatory requirement for an LLC in New Mexico to have a business plan, it’s an open secret that every successful LLC one does! A clear, transparent, and structured plan outlines the roles, rights, and responsibilities of every owner/member, employee, and manager of your company and also helps sort out your daily operations, finances, and due governance of the LLC. The best part? Well, you can create a functional plan that best suits your budget.
Here’s most of what you can include in your affordable business plan,
- A Brief Company Description and Summary
- Your LLC’s main objectives, goals, and values
- Complete Market research and analysis
- What Makes Your Business Special
- Your products and Services
- Marketing and promotion strategies
- Who Your Customers Are
- How You Plan On Reaching Your Customers
- Financial Goals and Management
- Lastly, Logistics.
#3 Elect a registered agent
For the next step, you need to pick a statutory agent for your business. A registered agent is an individual or entity authorized to receive and accept official, financial, and legal documentation and notices for your LLC. It can be,
- An individual like you, another member/owner of your New Mexico LLC, or an employee, manager, or officer of your company.
- An entity like another LLC or a registered business entity.
- An official registered agent service.
But in New Mexico, the rules are a bit different. The state prohibits a third party from acting as your registered agent. Some other requirements for an agent for a New Mexico LLC are:
- Must be an individual or a business entity authorized to conduct business in New Mexico.
- Should have a physical address in New Mexico where legal documents can be served during business hours.
- Must be available to receive legal notifications, tax documents, and official correspondence on behalf of the business.
- PO boxes are not allowed. They must be a physical address.
- The registered agent’s name and address are publicly listed on official documents.
The filing fee could be anything between $100 and $300.
#4 Prepare and file your Articles of Organization form with the Secretary of State
To formally register your LLC in New Mexico, you need to submit your Articles of Organization document to the New Mexico Secretary of State. This document is basically a legal document that lays out and registers all the basic information about your LLC.
Some details you can include in your form are,
- Name of your LLC.
- Address of main office.
- Purpose of the LLC.
- Start date.
- Duration (ongoing or limited).
- Effective date of articles.
- Registered agent’s name and address.
- Duration type (perpetual or specific).
- Initial manager/member info.
- Management Structure: whether member-managed or manager-managed?
- Organizer’s details and signatures.
You can file online with the state and the filing fee is $50. Also, if you own a domestic entity, you can create an account and complete the whole process online. The filing fee for this process is also $50.
Additionally, you also need to file a Statement of Acceptance of Appointment by Designated Initial Registered Agent, which also needs to be signed by your registered agent.
#5 Obtain an EIN(federal employer Identification Number) with the IRS
You need to get an EIN if you have an LLC in New Mexico. It’s a nine-digit number(formatted as XX-XXXXXXX) used for taxation purposes. Even if the LLC’s taxes are connected to the individual taxes of its owners, having an EIN lets the LLC do important things like having its own bank accounts and organizing pay for its workers. You’ll need an EIN if your LLC has more than one owner or has employees working for it.
An EIN is important for things like,
- Meeting federal and state tax obligations
- Opening professional business bank accounts
- Employing staff for your LLC
- Apply for multiple business licenses and permits.
- Carry out day-to-day business operations.
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
The whole process is free of cost.
#6 Draft an Operating Agreement
For the next step, create an agreement for your New Mexico LLC. An operating agreement is like a rulebook for your LLC. It usually includes details like,
- The money and job choices for the LLC (that’s like a group of business friends).
- Rules for how the inside stuff of the LLC works and says who has to do what.
- How the business owners will get what they need to make the business run smoothly.
An operating agreement is not legally required to start an LLC in New Mexico. But, nonetheless, it’s best to have one in hand in case things go sour.
An agreement for a New Mexico LLC should include details like,
- Name and primary location of the LLC
- Names and contact details of members/owners within the LLC
- Intended timeframe of your company
- Identity and location of the registered agent
- Details concerning the Articles of Organization
- Business objectives and mission
- Contributors to the LLC and their respective inputs
- Ownership portion, voting privileges, and profit distribution for each member
- Arrangements for sharing profits and handling losses
- Process for accepting and departing members
- LLC administration and decision-making
- Terms of dissolution
- Clauses related to indemnification and liability
Finally, once you’re done forming an LLC in New Mexico, don’t just sit back and relax just yet. Instead, focus on properly complying with the state and regulatory authorities.
With your legally registered LLC, you can finally focus on completing the following formalities,
- Get needed permits and licenses, like health or zoning permits and pro licenses.
- Register with the state’s tax agency.
- Open a business bank account.
- Get a business credit card.
- Buy business insurance.
- Safeguard your name and logo with a trademark.
- Buy a web domain for your business.
Also, if you plan on hiring employees for your LLC, you need to stay compliant and focus on doing the following,
- Obtain your EIN (Employee Identification Number).
- Ask your employees to fill out the Employee Eligibility Form.
- Set up a process for the collection and payment of taxes.
- Make sure you have workers’ compensation insurance.
- Report to the state about new hires within 20 days of hiring them.
For any more information on the same at the New Mexico New Hires Directory.
And that’s a wrap! That was all you needed to know before forming that LLC in New Mexico.
Frequently Asked Questions
Yes, you can operate your LLC without having a physical office in the state. You can use a registered agent’s address as your official business address.
The key steps include:
- Choosing a unique business name.
- Designating a registered agent.
- Filing formation documents with the New Mexico Secretary of State.
- Creating an operating agreement.
- Obtaining any required licenses or permits.
Online filings are typically processed within a few business days, while paper filings might take longer.