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LLC Cost In New Mexico - How Much To Pay In Fees & Taxes in NM

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Last updated February 17, 2023

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Listed among the most business-friendly US states, New Mexico has a lot to offer to new establishments. So, if you’ve already looked into how to start an LLC in New Mexico, it’s high time to review how much it will cost you.

Below, we’ll break down the New Mexico LLC cost so that you could plan your upcoming expenses with accuracy and efficiency. Just keep on reading.

Table of Content

1 How Much Is an LLC in New Mexico?
2 Primary New Mexico LLC Costs
3 Added New Mexico LLC Costs
4 FAQ

How Much Is an LLC in New Mexico?

Limited liability companies will engage specific charges and payments in all jurisdictions. Notably, LLC costs are not the same across the US. It means some states impose higher fees while other states impose lower fees.

To better understand what you’ll have on your plate, your cost to start an LLC in New Mexico will entail:

Formation or registration expenses to officially bring your legal entity to life;
Post-registration payments to retain the LLC's legitimacy afterward.

For the sake of this guide, we’ll divide all valid charges related to setting an LLC up and running into two main groups:

Primary costs most companies-to-be-formed are open to;
Added costs that might occur under certain circumstances and usually come as extras.

Primary New Mexico LLC Costs

This category of your future New Mexico LLC fees embraces formation and maintenance expenses. It’s worth noting that many of those payments will become regular. Some of them will be payable on an annual basis while others will pop up once in a few years.

Primary costs are those that will make a part of your budgeted expenses. The good thing is that those fees and rates are fixed and, hence, are easy to plan. Let’s dig in!

New Mexico LLC Filing Fee: $50

It’s the prime payment to consider when scheduling your formation expenditures. An NM LLC registration is about filing the Articles of Organization with the Secretary of State. Yes, it’s as simple as that.

The document is of generic nature and covers the very basic company info such as:

Your LLC name and registered address;
Your registered agent data;
List of your company owners;
LLC establishment date (if different from the filing date) and dissolution date (if applicable);
Any general info you deem necessary.

New Mexico offers only an online filing option via an official Secretary of State website. The filing fee is $50 (which is among the lowest in the US) and it’s payable only once. You won’t have to settle it monthly or yearly.

The best aspect of online filings is the processing speed. Your company’s statute will be reviewed and approved by the state within 1 to 3 workdays, which is fast compared to a few weeks in other jurisdictions. Hence, there is no expedited filing in place.

Registered Agent in New Mexico: $0 - $150

One of the advantages of the LLC structure is fewer regulations and requirements to follow. Yet, a registered agent (RA) is one of such requirements. You should have it in New Mexico, otherwise, your LLC won’t be registered.

There is no unified RA cost in New Mexico, though, since you’ll have different RA options to choose from. And the price will vary accordingly:

The law allows you to be your own agent. In this case, you’ll save money and maintain the ultimate secrecy for your official mail;
Yet another popular option among businessmen-to-be is assigning this role to some of the acquaintances. Some of them might also agree to perform this role for free;
You can appoint someone with an appropriate professional background including a lawyer, accountant, or tax consultant. But, those experts work under fixed rates;
A dedicated RA service is an option combining a professional approach with reasonable prices.

Serving your own agent or designating a friend or family member might be a choice for home-run businesses, startup projects, or small private ventures with a low document turnover.

In the meantime, our best recommendation is to opt for one of the best New Mexico RA services. You’ll be offered a full-fledged service pack that won’t cost you a fortune.

Besides, most of those providers have a number of added business-related service options on the list.

Basically, you can choose between:

Domestic RA services operating locally (i.e. within New Mexico) and costing anywhere from $35 to $100 a year;
National operators serving across the US with annual subscriptions costing $125-$150 on average.

Foreign LLC Cost in New Mexico: $100

Since LLCs are state-specific entities, to expand or move your existing LLC to any other state, you should get a foreign qualification there or register a foreign LLC. A New Mexico foreign LLC will legalize your already formed entity in this state.

Foreign qualifications are approved and registered by the Secretary of State. You should file a Foreign LLC Registration Application and pay a $100 filing fee to make your company operable and legitimate in New Mexico.

Licensing Costs in New Mexico: Cost Varies Locally

To run an LLC in New Mexico, it’s enough to register it with the state and set up a mail-handling agent, no state-wide license is required. However, local licensing requirements vary across the state.

Thus, some licenses and permits you might need to obtain to match the licensing rules in your city or county include:

Seller permit;
Professional license or occupational permit;
Zoning permit;
Health permit;
City tax permit;
Standard commercial business license;
Home-based business license.

Licensing fees differ by locality and the type of activity you run. The rates might fall anywhere between $20 and $500. An average license cost gravitates to $100.

To check for

Federal licenses, contact the Small Business Administration;
State and professional licenses, contact the NM Regulation and Licensing Department;
Local licenses and permits, contact your city or county government office.

With no general license in place, New Mexico has a requirement for all LLCs to get a Business Tax Identification Number. It’s issued for free by the NM Taxation and Revenue Department, and you can file for it online.

New Mexico LLC Taxes

Taxes are a part and parcel of any business. Similar to LLC laws, tax rates and the type of taxes levied over LLCs are state-specific. In New Mexico, your company will be exposed to the following taxes:

You’ll have to pay a state income tax on the part of the LLC profit distributed to you. The rate will vary from 1.7% to 4.9% depending on the income amount;
Members of standard LLCs are considered self-employed and should pay a 15.3% self-employment tax;
While there is no annual New Mexico LLC fee, the state levies a franchise tax over limited liability companies taxed as corporations. The rate is $50 a year;
An LLC sales tax is called gross receipt tax in New Mexico. The rates vary locally from 5.125% to 8.8125%. Essential goods and products like medicines are not taxed;
Companies hiring employees will be also charged payroll taxes. The rates range from 3.2% to 5.9% depending on the total taxable salary amount.

Added New Mexico LLC Costs

The costs below are usually pertinent to certain business situations. Most of them are one-time payments and won’t add to your regular expenses.

LLC Name Reservation Fee in New Mexico: $20

Most states allow filers to reserve the projected company name they like. So, if you’ve already checked the moniker for availability, you can put it on hold in New Mexico for a 120-day period until you are ready to register.

You should file an Application for a Domestic LLC Name Reservation and pay $20. Foreign LLCs should file an Application for a Foreign LLC Name Reservation and pay a $40 fee.

LLC Fees in New Mexico: DBA Registration Fee: $99

DBAs (doing business as) or alternate names are widely used by business owners for marketing purposes. A so-called fictitious name enables you to launch multiple services or product lines or expand your business activity without forming multiple legal entities.

Similar to other states, New Mexico allows registering as many DBAs as you need. Note, though, that you’ll have to file a separate application for each name and pay a $99 fee.

New Mexico Certificate of Good Standing: $25

Once you decide to apply for a bank loan for your business or set up a long-term credit line or factoring program, financial institutions will require you to verify your LLC’s compliance status. This is where you’ll need a Certificate of Good Standing.

You can order that from the NM Secretary of State by paying a $25 fee.

New Mexico Certified Document Copies: $25

A certified copy is a copy of your prime LLC document endorsed, stamped, or verified by a special certificate to prove its authenticity.

Depending on the situation, you might need a copy of:

Your Articles of Organization;
Certificate of Good Standing;
DBA registration;
Articles of Amendment or Dissolution.

Certified document copies are issued by the Secretary of State at your request. An Issue fee is $25 per copy plus $1 per document page. The whole process will take from 3 to 5 business days.

New Mexico Articles of Amendment: $50

The need to file amendments to your registered Article of Organization might occur if to decide to make changes in:

Your LLC name;
Your LLC management structure;
Your LLC membership.

To enforce those changes, you need to register the Articles of Amendment with the Secretary of State and pay a $50 fee.

Normal processing time is about 15 business dates. Expedited same-day processing is also available at a higher $300 fee.

New Mexico Articles of Dissolution: $25

To quit doing business and close your LLC, you need to officially dissolve it by filing the Articles of Dissolution with the state. Filing is only available via mail or in person since your original signature is required on the docs.

You can choose regular processing (around 15 days) and pay $25 or pick expedited processing. Thus, two-day approval costs $200 and same-day approval costs $300 accordingly.

FAQ

Is it worth establishing a legal LLC structure in New Mexico?

If you seek more support and independence for your business and more protection for yourself as a business owner, you’ll get all of these with an LLC. Even though registration entails some costs, it will pay off with a number of practical benefits over time.

How long will I have to wait to get my New Mexico LLC registered?

Offering online filings only, New Mexico is one of the fastest states to file your LLC. You’ll get your formation documents approved within 3 working days.

Is it necessary to annually renew an LLC in New Mexico?

New Mexico has no annual reporting requirements in place. So, you won’t have to bother about any renewals unless you choose to be taxed as a corporation. In this case, you’ll be open to an annual franchise tax payment.

What is the cheapest way to start an LLC in New Mexico?

To get a cheap LLC in New Mexico, consider handling formation and post-formation processes by yourself. This way, you’ll have only state fees to pay and won’t have to cover any assistance expenses.

Will I have tax refunds for my New Mexico LLC?

Typically, LLCs are not entitled to recoup taxes to any extent. However, when taxed as C-Corps under Form 8832, LLCs will be open to some tax rebates.

Can I get a salary from my New Mexico LLC?

You’ll be distributed a part of LLC profit pro rata to your equity share anyway. It’s a direct payment to you from your company. However, LLCs with a corporate tax status can employ their owners and pay regular salaries to them.

Can I write off my cell phone costs as company expenses in New Mexico?

You can deduct cell phone costs from your taxable LLC income if those costs refer to business use and make up over 50% of total use.

Are my Internet expenses deductible from my New Mexico LLC if I work from home?

Similar to phone expenses, Internet costs are only deductible if you use your home network for business purposes most of the time i.e. over 50% of total use.

Will I be able to write off my car costs as a part of my New Mexico business expenses?

Using your own car for business, you can refer your car costs to regular business expenses proportionally to business use. Notably, you can even deduct entire car expenditures if you use your car for work all the time.

Are my fuel costs deductible from my New Mexico LLC?

Yes, you can deduct fuel receipts as a part of general car expenses or based on the business mileage. The latter method is more complex and laborsome.