How to Form an LLC in New Mexico

Introduction

The process of forming an LLC in New Mexico is pretty straightforward. To get started, you’ll need to choose a name for your business and verify that it’s available. Then, you’ll create an operating agreement, obtain an EIN and file articles of organization with the state Secretary of State. You’ll also need to obtain a business license and permit before you can officially open your doors for business. Read on to learn more about each step in this process — and how much it’ll cost (nothing).

Choose a name for your LLC.

Once you’ve decided to form an LLC, the next step is to choose a name. A good name will:

• Not be too similar to an existing name. If the New Mexico Secretary of State’s office finds your company name confusingly similar to another company’s registered trademark, it can refuse to register your business with that name.
• Be appropriate for its purpose. Your company can’t use names like “International Bank” or “United States Post Office,” because those are already being used by other businesses. Also, no one wants their business named after something offensive or confusing (e.g., “Crazy Joe’s Sex Toys”).
• Be easy for customers and clients alike to remember—and spell!

Verify the name is available by contacting the New Mexico Secretary of State.

Before you can form your LLC in New Mexico, you need to verify that the name you choose is available by contacting the New Mexico Secretary of State. The name must be distinguishable from any other name on file with the Secretary of State.

If there is no record of a company or LLC in New Mexico that uses your proposed business name, then it’s available for use as an assumed corporate name. If more than one corporation or limited liability company exists with this same name, however, you may have trouble resolving this issue without being able to file suit against your competitors in court.

Create an operating agreement.

An operating agreement is a document that outlines the rules and regulations of your LLC. It’s not required, but it’s highly recommended because it helps protect you from legal liability in case your LLC ever gets sued. Your operating agreement should include:

• The name of the business and its registered agent (the person who will accept legal documents on behalf of the company)
• Names of all owners and managers (these are the people who have authority to make decisions for the company)
• How much each owner contributes to start-up costs and ongoing expenses, as well as how profits or losses will be distributed among shareholders
• When meetings are held (once per year?), what happens if someone misses one or refuses to attend? You also want to make sure that everyone agrees on how they’ll vote on important issues like whether or not they want an audit every year, so this part is crucial!

Obtain an employer identification number, or EIN.

Obtain an employer identification number, or EIN.

An EIN is a unique nine-digit number that identifies businesses for tax purposes. This number is required to open a bank account, set up a business checking account and file taxes as well as other legal documents. You can apply for your EIN online at the IRS website; it will take around five minutes to complete the application process.

File articles of organization with the New Mexico Secretary of State.

The Secretary of State is the administrative office responsible for registering your LLC and keeping its records. You can file articles of organization at any time after you’ve formed your company, but there are a few requirements:

• Your name must be unique so that it doesn’t conflict with another registered business.
• The secretary will also ask you to provide an address where they can send important documents, like annual reports and tax statements.
• Provide information about your business structure (domestic, foreign, or limited liability partnership). A domestic LLC is owned by one or more individuals while a foreign LLC is owned by one or more legal entities such as corporations or partnerships. A limited liability partnership consists of two types: professional service organizations such as accounting firms and law firms; financial service organizations such as banks, insurance companies and real estate investment trusts; transportation services such as bus lines or airlines; manufacturing businesses including manufacturers of farm equipment; retail stores that sell food products like grocery stores; wholesale distributors selling goods directly from manufacturer to retailer without going through retail outlets (such as those used by Walmart); construction projects involving more than $500K worth of labor costs over their lifetime (like building roads)

Find out how your LLC may be taxed.

As a limited liability company (LLC) owner, you have a choice between being taxed as a corporation or partnership. The taxation of your LLC depends on how you choose to be taxed:

• If an LLC is taxed as a corporation, it will face double taxation. This means that the income that your business earns is first taxed at the corporate level and then again when it’s distributed to shareholders or owners of the business.
• If an LLC is taxed as a partnership, there will be no need for double taxation because all assets are owned by its partners who pay their personal income tax rates on any profits they make from those assets.

Get a business license and permit.

You may need to obtain a business license and permit depending on the type of business you are starting. If you are opening a retail or wholesale business in New Mexico, you will need to obtain a state of New Mexico Business Tax License with the Secretary of State’s Office.

If you are opening a service business in New Mexico, such as freelance consulting or accounting services, then contact your county clerk office for information on obtaining your required permits and licenses.

New Mexico offers many opportunities to entrepreneurs who want to start businesses.

New Mexico is a great place to start a business. In fact, there are many opportunities for entrepreneurs who want to start businesses in New Mexico.

New Mexico is an especially good state for entrepreneurs because:

• The cost of doing business here is relatively low compared with other states in the country
• There is plenty of space available for new businesses and building sites

Conclusion

If you’re ready to set up your new LLC, these steps are the place to start. You can also visit our website for more information on forming an LLC and other business structures.