If you’re thinking of starting a limited liability company (LLC) in New Mexico, you’ll want to know in advance how much it’s going to cost. LLC formation fees vary by state, so it’s wise to do a bit of research and prepare yourself, and your new business, for the necessary steps.
LLC Costs in New Mexico
|Articles of Organization||$50
|Certified Copy – Articles of Organization||$25 plus $1 per page
|Certificate of Good Standing||$25
|Registered Agent Service||$50 – $300
|Operating Agreement||$0 – $2500
|Business Licenses and Renewals||varies – check with state and local government
Articles of Organization Cost
In New Mexico, you form an LLC by filing articles of organization, which requires a $50 fee. It’s a simple process you can do online at the New Mexico Corporations and Business Services website. You’ll need to create an account and log in to file. If you file online, your LLC should be approved and formed within one to three days.
If you need a certified copy of the articles of organization, there is a $25 fee plus $1 per page. If you need a Certificate of Status, there is a $25 fee. If you’d like the state to hold your LLC name before you register, you can apply online here for $20 to reserve it for 120 days. Again, you’ll need to create an account and log in to reserve your name.
Registered Agent Cost
In New Mexico, you are required to have a registered agent, also known as an agent of service in process. A registered agent is a person or business authorized to accept and respond to legal, tax, and financial documents on behalf of your business.
In New Mexico, you can be your own registered agent, or it can be another member of the LLC. An individual who is not a member or a professional agency can also serve as the registered agent for your LLC.
Costs for a registered agent service range from $50 a year up to $300 or more. Several online firms, such as ZenBusiness and Northwest Registered Agent, provide quality services at reasonable rates.
Business Licenses and Permits Cost
Starting an LLC requires obtaining the required licenses and permits from local, state, and federal governments. Fees for these vary, but most costs are minimal.
Federal regulations, licenses, and permits associated with starting your business include doing business as, health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific permits.
You may also need state-level and local county or city-based licenses. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments to learn more.
Business license fees depend on the type of business and the agency issuing the license or permit. On average, business licenses cost between $100 and $300+, plus renewal fees.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package ($149 + state fees). They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
Operating Agreement Cost
In New Mexico, your LLC is not required to have an operating agreement in place. But it’s highly recommended, as an effective operating agreement can help avoid disputes and lawsuits that could threaten the stability of your LLC.
An LLC operating agreement is an important legal document that details who owns the business and provides essential information pertaining to member duties. An LLC operating agreement establishes the financial relationship between members and the basics of the working relationships between those members and the managers who oversee daily operations.
The operating agreement is not filed with the state, but instead remains private. It’s advisable to hire an attorney to ensure your operating agreement is thorough and legally binding.
Creating an operating agreement is free if you just draw it up yourself. Alternatively, you can pay around $100 for guidance from an online business advisory.
This is an extremely important document, so it’s recommended that you use the services of a specialist or legal firm. If you choose to hire an attorney to help you create this document, the price will be around $500 for a single-member LLC and $2,500 for a multi-member LLC.
LLC Formation Service Cost (Optional)
Forming an LLC in New Mexico tends to involve a lot of red tape and paperwork, so for many entrepreneurs just starting out it’s a good idea to hire an experienced service provider.
Some of the best services for forming an LLC are ZenBusiness and Northwest Registered Agent. LLC Formation service will take care of all the key steps, keeping you updated while allowing you to focus on launching and growing your business.
The cost of professional services depends on your requirements and LLC formation plan. Most LLC service providers offer different plans/packages and there are many LLC services that offer free LLC formation.
Ongoing New Mexico LLC Costs
Every state has a different fee structure and timelines for LLC documents and licenses. It’s important to stay up-to-date or your business could face significant penalties. The fees and timelines for New Mexico are detailed below.
Income Tax Reports
In New Mexico, LLCs must file an Income and Information Return for Pass-Through Entities (PTE), unless they are a single member LLC. This is done through the Department of Taxation and Revenue. You’ll need an account on the site in order to file your return.
If your business is a pass-through entity, file in New Mexico on or before the due date of your federal return for the tax year. New Mexico also requires you to deduct and withhold tax from each non-resident owner’s allocable share of net income. The tax withheld is sent to the tax department annually.
Business License Renewal Fees
Some business licenses and permits must be renewed periodically, which may have a small associated fee. In New Mexico, a sales tax permit is obtained by registering for a tax account. There is no fee, and there are no renewal requirements.
Other business-specific licenses and permits, such as permits for retail food establishments, must be renewed annually. You’ll need to check with the offices that issue your required licenses and permits, at both the state and local levels, for renewal requirements and fees.
It’s best to set calendar reminders for all your license renewals so that you stay in compliance with the law.