How to Start a New Mexico LLC
(Step-by-Step) 2025 Guide
CONTENTS
Starting a business in New Mexico involves several key steps to ensure your company is legally compliant and positioned for success. One popular business structure is the limited liability company (LLC), which offers personal liability protection and operational flexibility.
Below is a detailed guide to forming an LLC in New Mexico. If you decide that’s too much work, then use our free business registration process as a fantastic shortcut.
1. Conduct an LLC Name Search
Begin by selecting a unique name for your LLC that complies with New Mexico’s naming requirements. The name must include “Limited Liability Company,” “LLC,” or “L.L.C.” Additionally, certain words like “Bank,” “Insurance,” “Olympic,” and “Trust” are restricted and cannot be used in the business name.
It should not be identical or confusingly similar to existing business names registered in the state. To verify name availability, use the New Mexico Secretary of State’s business search tool.
Do note that there are other methods to do a New Mexico LLC name search. Read our guide to see what’s available to you.
2. Appoint a Registered Agent
New Mexico law requires your LLC to designate a registered agent—a person or entity responsible for receiving legal and tax documents on behalf of your business. The registered agent must have a physical street address in New Mexico (PO Boxes are not acceptable) and be available during normal business hours.
You can act as your own registered agent, appoint a friend or family member, or hire a professional registered agent service.
However, a better idea is Business Anywhere’s registered agent service. You’ll pay as little as $147 per year, making it well worth the money spent.
To find out more about the New Mexico registered agent process, read our guide.
3. File the Articles of Organization
To officially form your LLC, file the articles of organization with the New Mexico Secretary of State. This document includes essential information about your LLC, such as its name, registered agent, and management structure. New Mexico only accepts online filings for LLC formations, and the filing fee is $50.
Check out our guide to see more about filing the New Mexico articles of organization.
4. Create an Operating Agreement
Although not legally required in New Mexico, drafting an operating agreement is highly recommended. This internal document outlines the ownership structure, management responsibilities, and operational procedures of your LLC. It serves as a valuable reference for resolving disputes and clarifying expectations among members.
Find out more about creating a New Mexico operating agreement by reading our guide.
5. Obtain an Employer Identification Number (EIN)
An EIN, issued by the Internal Revenue Service (IRS), functions as a federal tax identification number for your LLC. It’s necessary for tasks such as opening a business bank account, hiring employees, and filing federal taxes. You can apply for an EIN online through the IRS website at no cost.
Check out our guide to obtaining a New Mexico EIN to learn more.
6. Acquire Necessary Business Licenses and Permits
Depending on your industry and location, your LLC may need additional licenses or permits to operate legally in New Mexico. It’s essential to research and obtain all necessary local, state, and federal licenses to ensure full compliance.
Want more details? Then read our guide on New Mexico business licenses.
7. Consider Obtaining a Certificate of Good Standing
While not required to start your LLC, a certificate of good standing verifies that your business complies with state regulations and is current with all filings and fees. This certificate can be beneficial when opening a business bank account, applying for loans, or conducting business transactions.
You can request this certificate from the New Mexico Secretary of State for a $25 fee.
To learn more, see our guide on getting a New Mexico certificate of good standing.
New Mexico LLC FAQs
If you’ve got more questions about creating a New Mexico LLC, then not to worry. Our FAQs section may address your concerns.
Do New Mexico LLCs need to file annual reports?
No. Unlike most states, New Mexico does not require LLCs to file annual reports or pay annual fees, making it an attractive state for business formation.
What taxes does a New Mexico LLC have to pay?
- Gross receipts tax (GRT): Instead of a sales tax, New Mexico has a gross receipts tax that applies to most businesses, including LLCs that sell goods or services.
- State income tax: LLCs in New Mexico are typically taxed as pass-through entities, meaning profits are reported on the owner's personal tax return.
- Payroll taxes: If you hire employees, you must register for state withholding tax and unemployment insurance tax.
Can I form a single-member LLC in New Mexico?
Yes. Single-member LLCs (SMLLCs) are allowed and provide liability protection while being taxed as a sole proprietorship by default.
Can a foreign LLC operate in New Mexico?
Yes. If you have an LLC formed in another state but want to do business in New Mexico, you must register as a foreign LLC and obtain a certificate of authority from the Secretary of State.
Can I change the name of my New Mexico LLC?
Yes. To change your LLC’s name, you need to file the articles of amendment with the New Mexico Secretary of State and pay the $50 fee.
How do I dissolve a New Mexico LLC?
To officially dissolve your LLC, you must file articles of dissolution with the New Mexico Secretary of State. There is a $50 filing fee.
Step-by-Step Guide to
Forming a New Mexico LLC
New Mexico LLC Starter Guide
A step-by-step guide to forming an LLC in New Mexico, covering all legal and operational requirements.
1. New Mexico Name Search
Learn how to check the availability of your desired LLC name and ensure compliance with New Mexico naming rules.
2. New Mexico Registered Agent
Understand the role of a registered agent and how to choose one for your New Mexico.
4. New Mexico Operating Agreement
Discover why an Operating Agreement is crucial for defining the structure and management of your LLC.
5. New Mexico EIN Number
Learn how to obtain an Employer Identification Number (EIN) from the IRS for tax and banking purposes.
6. New Mexico Business License
Get information on the required business licenses and permits for operating legally in New Mexico.
