How To Form an LLC In New Mexico
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1. Choose a Name for Your New Mexico Limited Liability Company
Check for an Available Name for the LLC in New Mexico: You must have a unique name for your company in order to file to form an LLC in New Mexico. To check name availability and make sure that the name that you have in mind is unique and not in use by another LLC, you can search online databases and other records. On the official website of the New Mexico Secretary of State there is a database of New Mexico business entities that you can search: New Mexico LLC.
Reserve a Name for Your New Mexico LLC: Though it is not required in New Mexico that you reserve a name in advance, consider reserving the name that you have chosen for your LLC if you cannot file Articles of Organization right away. At New Mexico LLC you can download the application to reserve a name. You can submit a name to be reserved for 120 days for a fee of $20.00.
Filing for Trademarks Protection and Doing an LLC Name Search: As you check for name availability, you may find out that the business name that you want to use is available in New Mexico but in use by an LLC in another state. There may be restrictions that limit how you use the name. With the help of an attorney, you can learn what these restrictions may be and how you can take steps to trademark the name of your company. At how to choose a name for your llc you can learn more about choosing a name for your LLC.
New Mexico LLC Name Requirements: Every LLC formed in New Mexico has to have the designation "LLC," “L.L.C.,” “LC,” “L.C.” or "Limited Liability Company" as part of the name. It is useful to keep in mind that “LLC” stands for “Limited Liability Company,” and not “LLC Corporation, “Limited Liability Corporation,” or anything else connected to a corporation. An LLC is a certain type of business entity that is organized differently than a corporation.
2. Find a Registered Agent in New Mexico
In New Mexico you are required to have a registered agent who acts as an agent for service of process for your LLC. Your registered agent will receive tax forms and legal documents for your LLC. You might want to use the services of a corporate services company. Many corporate service companies offer registered agent services to LLCs, generally for a fee of around $75.00 to $150.00.
3. File Articles of Organization with the New Mexico Secretary of State
Minimum Requirements for the Articles of Organization: The Articles of Organization that you file for your New Mexico LLC must contain the name of your LLC, the street address of your principal place of business, the name and street address of your registered agent, and the name of the organizer. You must also indicate whether the LLC will be managed by a manager. The Articles of Organization must be signed by the organizer. You can download a form for this document online at New Mexico LLC.
Other New Mexico Legal Provisions: You should think about including some additional provisions in your Articles of Organization. With the help of a lawyer, you can determine which additional provisions are the most important for you to include.
Where to Submit the Articles of Organization for Filing: You should send your signed Articles of Organization and one copy to the Public Regulation Commission, Corporation Bureau, Chartered Documents Division, P.O. Box 1269, Santa Fe, NM 87504-1269.
Filing Fee: The fee to file Articles of Organization in New Mexico is $50.00.
4. Form a New Mexico Limited Liability Company Agreement (Operating Agreement)
After filing Articles of Organization, you will need to create an LLC Agreement that will govern the LLC and actions between the members of the LLC much like by-laws govern a corporation. You can create an LLC Agreement that is specific to your company. The details of your LLC Agreement will depend on many factors such as how many owners and members of the LLC, who will initially invest capital in the LLC, whether the members will be organized as a board or a committee and how subsequent members will be added, what the voting requirements will be, what the powers of the managers and executives will be, and the way that money will be distributed among the members. You could also consider including provisions that explain what will happen if you eventually decide to dissolve the company or incorporate. Because LLCs are formed for various purposes, you should consider the purpose of your LLC when you are creating your LLC Agreement. Did you form your LLC to run a retail store, a restaurant, an Internet business, a construction company, or some other kind of business? LLC Agreements can be complex, but with the help of a lawyer and an accountant you can create an LLC Agreement that is in compliance with all state requirements and federal tax laws.
You should also prepare to make securities filings for your LLC, obtain an EIN from the IRS, and obtain a business license in the city where you will be doing business. Some corporate services companies provide assistance with these types of filings for a fee. Go to our online guide at http://www.cityapplications.com/business-licenses.html for more information about how to get a business license in your city.
5. Qualify Your New Mexico LLC to Do Business in Other States
When you do business in other states you will need to qualify or register your LLC. You even need to qualify your LLC in your home state if the main office of the company is located in another state. In general, you must pay taxes in your home state when you do business in other states. Go to [Qualifying to Do Business in Other States] for more information about how you can qualify your LLC to do business in other states.
6. Make Annual Filings and Pay Annual Taxes in New Mexico
The state of New Mexico may require certain periodic filings for your LLC. You should contact the New Mexico Public Regulation Commission if you have any questions. You will be required to file a tax report and pay taxes every year. Go to the official website of the New Mexico Taxation and Revenue Department at New Mexico LLC to find information about the taxes that will apply to your LLC and to download tax forms.
It can be complicated to form a New Mexico LLC, but with the help of an accountant and an attorney you can have confidence that an LLC is right for you and that all your paperwork is being processed correctly.
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This site is for informational purposes only and does not constitute legal, financial or tax advise. The information on this site should not be relied upon as an official source of information and should be independently verified.