How much does an LLC cost in New Mexico? (details)
Forming a New Mexico LLC entails more than just paying the first filing fee; it doesn't have to be extremely expensive.
We outline all up-front and continuing costs for a New Mexico LLC and advise how to successfully cut these out of the budget.
How Much Does It Cost to Start an LLC in New Mexico?
There is a $50 filing fee for the Articles of Organization with the Secretary of State when forming an LLC in New Mexico.
This is important in creating your LLC's legal standing, allowing it to function under New Mexico regulations if approved.
Apart from the LLC filing fee mentioned above, additional expenses are associated with establishing a New Mexico LLC (Limited Liability Company).
Costs of Forming a New Mexico LLC
Forming an LLC includes a one-time state filing fee of $50.
There are also ongoing fees, which we discuss below.
LLC Costs in New Mexico
| Requirement | Cost |
|---|---|
| LLC Name | $0 |
| Registered Agent | $0 or $125 per year |
| Articles of Organization | $50 |
| Operating Agreement | $0 (free on our site) |
| EIN Number | $0 (free to the IRS) |
| Annual Report | $0 |
| Taxes | varies (filed and/or paid every year) |
Reserving a business name in New Mexico entails a fee of $0
The creation of your New Mexico LLC Name Reservation is completed simultaneously if you want to file online. An additional $0 filing fee is required for an online name reservation when filing online.
Remember to include the Name Reservation with your application if you want to file by mail.
But before forming your LLC, you have to wait for the Name Reservation to be approved. Even though filing by mail can save you a few bucks, it can take longer to form your LLC.
New Mexico Registered Agent Fee ($0 to $125/ annually)
Under New Mexico law, every LLC formation requires the appointment of a Registered Agent.
Your New Mexico Registered Agent acts as the liaison for legal documents and state notifications on behalf of your LLC, necessitating a physical address within the state and availability during regular business hours.
You can appoint yourself, a trusted associate, or a family member as your Registered Agent without incurring additional expenses.
Alternatively, hiring a Registered Agent service costs between $100 and $300 per year. These services offer additional business support and safeguard your privacy.
Hiring a Registered Agent service is a good idea if:
- You lack a physical address in the state (New Mexico law mandates Registered Agents to have an address within the state).
- You prefer to keep your address private (some companies allow you to use their address for confidentiality).
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LLC Operating Agreement Fee ($0)
A New Mexico LLC Operating Agreement functions as a written contract among the LLC's members. It outlines specific details regarding ownership, how the LLC is managed, and the distribution of profits.
Both Single-Member and Multi-Member LLCs should create an Operating Agreement, maintain it within their business records, and provide each member with a copy.
Online services generally charge between $50 to $200 for crafting an LLC Operating Agreement.
LLC EIN Number Fee ($0)
An EIN, also referred to as an Employer Identification Number or FEIN (Federal Employer Identification Number), is essential for handling tax filings, setting up an LLC bank account, and potentially facilitating employee hiring.
While some platforms may charge a fee, you can obtain an EIN for your LLC free of charge directly from the IRS. The process to apply online is simple and typically takes only a few minutes to complete.
New Mexico LLC Annual Report Fee ($0/year)
In New Mexico, the LLC Annual Report is referred to as the Periodic Report.
The state requires you to keep your LLC's information up to date by filing a New Mexico Periodic Report annually.
This keeps your LLC in good standing and compliance with state law so it can continue operating. You simply confirm the information on your Periodic Report, file it with the New Mexico Secretary of State, and pay the Periodic Report filing fee.
The New Mexico LLC Periodic Report is free annually. These costs are required each year for the duration of your LLC's existence.
✎ Note:
Other business entities may file different reports, but LLCs only need to file the Periodic Report each year.
New Mexico Business License and Permit Fees
The locations and industry sectors in which your LLC operates in New Mexico may require you to apply for additional business licenses or permits. For your LLC's specific operating area, for example, it may be necessary to obtain a city business permit.
Location and industry specifics can affect the cost of these licenses or permits. These costs are usually fair. Local governments such as towns, cities, or counties are responsible for administering some licenses and permits, while the state issues others.
LLC Taxes
New Mexico LLC owners face a range of tax obligations, leading to varying annual costs.
Some of the taxes LLC owners pay include:
- Federal taxes
- State income tax
- Local income tax
- Business taxes
- Self-employment taxes
- Sales and use tax
- Payroll tax (if you have employees)
- Property tax (if the LLC owns property)
The Taxes of Your New Mexico LLC taxes are affected by your industry and business activities, making it difficult to predict. Every business is different, and the taxes your LLC owes depend on your specific situation.
✎ Note:
Typically, a Single-Member LLC is taxed similarly to a Sole Proprietorship, while a Multi-Member LLC is taxed similarly to a Partnership.
Hiring an Accountant
Accounting fees can vary, but in general, expect to pay about $300 a year for basic tax returns and up to $900 for more comprehensive filings.
The best person to help you determine your small business tax liability in New Mexico is a certified accountant.
While accounting costs can vary, you should generally budget $300 for simple tax returns and up to $900 for more complicated filings annually.
Need to save time?
Consider hiring a professional to set up your LLC: Northwest Registered Agent offers LLC formation services starting at $39 plus the state fee.
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✎ Note:
Accounting fees can vary, but in general, expect to pay about $300 a year for basic tax returns and up to $900 for more comprehensive filings. We recommend speaking with a few New Mexico accountants to make sure they can help you with all of your local, state, and federal tax needs. For more advice, see our comprehensive guide on how to find an accountant.
New Mexico Secretary of State
If you're curious about the expenses involved in starting a New Mexico LLC, feel free to contact the New Mexico Secretary of State for detailed information.
New Mexico LLC Costs FAQs
Do I need to hire an attorney to form an LLC in New Mexico?
No, you are not required to hire an attorney to form your LLC in New Mexico. However, you can choose to hire one if you want to.
An attorney typically charges between $800 to $2,500 to assist with forming an LLC. This fee is in addition to the $50 state filing fee.
You can save money by forming your LLC yourself using our free New Mexico LLC lessons.
Should I hire an LLC filing company?
While you can hire an LLC filing company, it is not required. LLC filing companies typically charge between $50 to $400 for their services.
How much does it cost to open an LLC in New Mexico?
The total cost to form an LLC in New Mexico is $50 for filing the Articles of Organization. This is the only amount required if you file the documents yourself.
Some LLCs may require additional state or local business licenses, which can vary in cost depending on your industry and location.
What are the annual costs for a New Mexico LLC?
New Mexico does not have an annual fee for LLCs. The only recurring cost is taxes, which include federal income tax, business taxes, sales tax, payroll tax (if applicable), and property tax (if applicable).
The amount you pay in taxes depends on various factors and should be discussed with a qualified accountant. Accountant fees typically range from a few hundred dollars to about $900 or $1,200 annually.
What additional costs should I be aware of for a New Mexico LLC?
If you hire a Registered Agent service, it will cost about $125 per year. However, you can act as your Registered Agent in New Mexico to save money.
Additionally, you'll need a business bank account, and some banks charge monthly fees. These fees can often be waived by meeting certain requirements, such as maintaining a minimum balance.