Last Updated on June 13, 2022 by Fair Punishment Team
For those who want to start their own LLC, it can be a daunting experience. There’s a lot to consider, and so much to learn. While we can’t tell you every secret in the industry, we are able to make the process feel a little less daunting.
If you want to start an LLC but don’t know the process, this article is for you. Here, we’re going to go through everything you need to know to start an LLC in New Mexico.
Please note that the information provided in this post is specific to New Mexico, and other states may have a different process.
If you intend to start an LLC in another state, we would highly recommend taking a look at the process for that particular state. You don’t have to go far, though – we’ve covered starting an LLC in a number of states.
What Exactly Is An LLC?
An LLC is, or Limited Liability Company, is a type of business structure that is used in the United States. This business structure protects the owners from having any personal responsibility for things such as liabilities or debts.
An LLC may be a partnership, or a sole proprietorship. LLCs are excellent, as they protect an individual’s personal assets by keeping them separate from business-related issues.
As such, the personal assets of a business owner will be protected if lawsuits against the company arise, or if the business experiences debts.
How To Start An LLC In New Mexico
Starting an LLC in New Mexico is probably a lot easier than you thought. There are five basic steps, and anyone can do it when they take the time to do so. If you want to find out how to create an LLC in New Mexico, just keep reading.
If you are busy enough, you can also get someone else to do all the hard work for you. The professional service Zen Business is known for their easy and affordable way of doing things. If you don’t have the time to get everything done yourself, they’re a great option to make life a little easier.
What You Need To Know
In order to start an LLC in New Mexico, you need to:
- Be at least 18 years old
- Be able to pay the fees needed to
- Have a physical street address in the state of New Mexico
- Be able to register your LLC in person or via mail if you are in a partnership or corporation
- Ensure your business does not violate federal laws or regulations
Naming Your New Mexico LLC
The first important thing you will need to do is name your New Mexico LLC. Picking the correct company name is incredibly important, and you need to make sure that the name complies with the naming laws in New Mexico.
You should also make sure that the name of your company is easy to find, and lets potential clients know what to expect from you. You want a name that is memorable, but makes sense, and complies with all regulations in the state.
There are three things to consider when naming your New Mexico LLC. Let’s take a look at them below:
- In New Mexico, there are three guidelines to follow when naming an LLC in the state. They are as follows:
- Name must include “Limited Liability Company, LLC, or L.L.C – if your company name does not include one of the three, it is not suitable.
- Company Name cannot sound similar to government agencies that could cause confusion – for example, you cannot name your LLC something like “FBI”, or “State Department”, as this is likely to cause confusion and would not be suitable.
- Name should not include restricted words – these words include “university”, “bank”, or “attorney”. If you want these words in your company name, you may be required to provide additional legal paperwork, and a licensed person (for example, a lawyer or doctor) may need to be a part of the LLC.
- The name you want must be available in the state of New Mexico. Your chosen name might already be taken by another company. You can go to the State of New Mexico’s website to check by doing a name search.
- The URL for your LLC must be available. To do this, you can check its availability as a web domain. You can buy the domain or URL to ensure it remains yours, even if you are planning to create the website in the future.
Choose A Registered Agent
The next step is choosing a New Mexico LLC Registered Agent. This is not optional, as it is required that you nominate a New Mexico registered agent for your new business.
A registered agent is a person or business that is responsible for acquiring documents (such as legal documents from the state) on behalf of the LLC.
A registered agent has to be a New Mexico resident or a corporation based in New Mexico. An example of this would be a registered agent service. They must be authorized to conduct business in the state. This person can be elected in a company, and it can even be yourself.
File The Articles Of Incorporation
In order to register your New Mexico Limited Liability Company, you will need to file the Articles of Organization with the New Mexico Secretary of State.
To do this, you can apply online, and you will need to file a Statement of Acceptance of Appointment by Designated Initial Registered Agent – which must be signed by your registered agent.
At this point, you should know if your LLC is going to be manager-managed, or member-managed. This will depend on whether the members of the LLC wish to be involved in the daily dealings and operations of the business or not.
Create An Operating Agreement
Although it is not legally required for a New Mexico Limited Liability Company to have an Operating Agreement, it is always recommended to have one. Having an Operating Agreement is considered to be good practice, so it would be beneficial to create one.
An operating agreement is a legal document that outlines the operating procedures and ownership of the LLC. These Operating Agreements are important because it helps ensure that everyone in the business is on the same page.
When everyone knows what is going on and what is expected, the risk of conflict arising in the future greatly decreases. This means that the LLC is likely to run smoothly and encounter minimal issues among its owners.
Get An EIN Number
An EIN, or Employer Identification Number, is a nine-digit number that is assigned to businesses. This number is used to help the business be identified for taxes, among other things.
The number is assigned to a business by the IRS (Internal Revenue Service). It is needed in order to hire employees, open a business bank account, and file and manage the LLC’s federal and State Taxes.
You can think of an EIN as a Social Security Number, but for a business. You might hear this number referred to as a FEIN, or Federal Employer Identification Number. Alternatively, it might be called a Federal Tax Identification Number, or FTIN.
If you already have an EIN for a sole proprietorship you have, you will be required to get a new one when it is converted to a limited liability company. You can get your EIN number for free from the IRS. It is a very easy process, and you can decide to do it either via mail or online.
To request an EIN online from the IRS, click here.
If you wish to request your EIN by fax or mail, you will need to apply for it by mailing to:
- Internal Revenue Service
- Attn: EIN Operation
- Cincinnati, OH 45999
Or fax it to:
- (855) 641-6935
Do You Need A BIN?
As your LLC is in New Mexico, no BIN (Business Identification Number) to hire employees. Instead, your EIN number is required for this purpose.
What To Do After Your LLC Has Been Formed
Once your limited liability company has been formed, there are a few things that you should consider doing. We will briefly go through these below:
Separate Your Business Assets From Your Personal Assets
if you fail to separate your business and personal assets, you run the risk of your own belongings (such as your car or valuables) being taken from you if your company is sued or goes into debt.
When this happens, it is known as “piercing the corporate veil”. Prevent this from happening by opening a business account, getting a business credit card, and hiring a business accountant.
Ensure You Have Business Insurance For Your New Mexico Limited Liability Company
this will help you manage potential risks and aid you in growing your new business. There are three common types of business insurance, which are as follows: General Liability Insurance, Professional Liability Insurance, and Workers’ Compensation Insurance.
Create A Website For Your New Business
this is an important thing to do if you want to legitimize your business. In today’s world, all businesses need to have a website, no matter how small or new they are. Websites are a huge source of customers, whether the business does any online work or not.
You do not need to have any experience in building websites in order to do this, as there are many websites to use to make website building far more simple than it used to be.
Send Out Our Press Release
this is one of the easiest and most cost effective ways of marketing and promoting your business. Doing a press release for your LLC will have long lasting benefits, and will let people know about the business while providing publicity.
Not only that, but a press release will improve the SEO of your website, which is an incredibly important part of your LLC being successful.
Frequently Asked Questions
Do I Need A Business License?
You might need a business license, depending on the nature of the business. To see if you need a license, registration, or certification, you can check the State of New Mexico business portal website.
What Are The Tax Requirements To Start An LLC In New Mexico?
The state of New Mexico doesn’t require limited liability companies to file an annual tax report. The state imposes a franchise tax of LLC if the business paid federal income tax.
This franchise tax is filed alongside the state income tax. This tax is due after the tax year closes, by the 15th day of March, at the latest, with a $50 fee.
Can You Be Your Own Registered Agent?
Yes you can. In fact, anyone in the company can be the Registered Agent.
How Long Does It Take For A New Mexico LLC To Be Processed?
Usually two business days. However, the whole process can take longer if you choose to complete forms via mail or online.
Is Starting A New Mexico LLC Expensive?
No, to start an LLC in New Mexico costs just $50. However, there are additional charges depending on the choices you make.
Must My Operating Agreement Be Filed With The State?
No, your operating agreement is only for you and your company, and should be filed safely, so you can access it in the future. In other states, it is required that your operating agreement is in place, but it is not a legal requirement for New Mexico.
Is An EIN Required Of My LLC?
Yes. If your LLC has, or will have employees, then an EIN number is required. If you are the only one at the company, an EIN number is not necessary.
How To Get An EIN If You Don’t Have A Social Security Number
You don’t need a social security number to get an EIN number. You will need to fill out the IRS Form SS-4, but leave the 7b section out. After it has been filled out, you will need to call the IRS at (267) 941-1099 to get the process completed.
Is A Business Website Important For An LLC?
Yes, having a business website is very important for a business, including an LLC. Having a website will allow your company to be seen by many potential customers. Since the world is so digital now, choosing not to have a business website would harm your business.
Are Press Releases Important?
Yes, having a press release can be extremely important and beneficial to your business. It improves SEO (search engine optimization), and provides the business with a lot of publicity at a low cost.
Final Thoughts
Starting a limited liability company in New Mexico can seem daunting, but it isn’t as hard as you might think! With some research, you can easily get started and know what to expect from the process.
If you are thinking of forming an LLC in New Mexico, hopefully this article has cleared everything up for you, and you now feel confident enough to start the process.
Please remember that the information given on this page is specific to New Mexico. Other states will have their own rules and regulations. If you intend on forming an LLC in another state, refer to the article that covers that state’s requirements and processes.
