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Perhaps you are hoping to form a New Mexico LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in New Mexico.
On this page, you’ll learn about the following:
New Mexico LLC Cost of Filing
Here are the costs involved in forming an LLC in New Mexico.
Cost of Filing Formation Certificates
The New Mexico Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the New Mexico Secretary of State.
New Mexico Domestic LLC
- Online Filing costs $50.
- Annual Report filing not required
- Name Reservation fee costs $20
New Mexico Foreign LLC
- Online Filing costs $100.
- Annual Report filing not required
- Name Reservation fee costs $40
- By Mail: Fill out the application form, and send it to Secretary of State Corporations Bureau Chartered Documents Division 325 Don Gaspar, Suite 300 Santa Fe, New Mexico 87501. Costs $100.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
New Mexico LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in New Mexico, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
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 | $0 + State Fees |
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Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the New Mexico Department of Revenue for regulatory boards or agencies requiring licensing.
Taxes Payable to New Mexico Department of Revenue
This article is your ultimate guide to the several taxes that an LLC has to pay in New Mexico. Read on to know the taxes levied by the state & federal governments in New Mexico.
The state taxes to be paid to the New Mexico Department of Revenue are :
State Income Tax
Every member of the LLC formed in New Mexico is liable for the State Income Tax. This tax is charged on the amount a person earns himself through the LLC. Usually, this tax is calculated while filing personal income tax returns. The standard income tax rate in New Mexico ranges from 1.7% to 4.9%, depending on the amount a person earns.
State Sales & Use Tax
The current state sales & use tax rate on LLC in New Mexico is 6.625%. However, the tax rate changes as per the region or city in which the LLC is formed. Every LLC that sells tangible items or is a service provider, has to collect this type of tax & then pay it to the New Mexico Department of Revenue.
Federal Self-Employment Tax
Similar to the State tax, every person earning money from the LLC has to pay this type of tax. It is sometimes called Social Security or Medicare tax. The Federal self-employment tax rate in New Mexico is 15.3 percent.
Federal Income Tax
The Federal Income Tax is levied on the LLC, depending on the earnings of the LLC, the tax bracket applicable to such earnings, & the manner of filing. This Tax is levied on all the profits earned by the company.
Employee & Employer Taxes
An LLC with several employees drawing monthly salaries has to also pay Employee-Employer taxes, in addition to the taxes mentioned above. These tax implications vary, depending on various factors, e.g., the amount, number of employees, etc.
Cost Comparison Between States
New Mexico is surrounded by many states, namely Colorado, Oklahoma, Texas, Arizona, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.
| States | Filing Fee | Annual/Biennial Fee | Sales Tax |
| New Mexico | $50 | None | 6.625% |
| Colorado | $125 | $85 | 2.9% |
| Oklahoma | $104 | None | 4.5% |
| Texas | $300 | None | 6.25% |
| Arizona | $50 | None | 5.6% |
Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. For Example, if your LLC is in the sector of import & export, you have to pay the import-export duty. You should consult with a professional to verify the tax rates or business costs of registering an LLC in New Mexico.
Other Costs
- New Mexico Name Reservation: $20 for online fillings or by mail
- Doing Business As (DBA): $25+$25 for each class code for online filling or if filing by mail
- Certified Document Copies: $15 per document.
- Certified of Good Standing: $25
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of New Mexico LLC: $25
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
How Much Does It Cost to Maintain an LLC in New Mexico
To maintain an LLC in New Mexico you do not need to pay an annual fee. However, state income tax at 1.7% to 4.9%, sales & use tax at 6.625% and federal taxes are levied.
There are several costs associated with maintaining an LLC in New Mexico. One of the expenses that business owners can expect is the initial formation fee. When establishing an LLC in New Mexico, individuals need to submit the necessary paperwork and pay a fee to the Secretary of State. The formation fee is a one-time cost that may vary depending on the state and the type of business entity being formed.
Beyond the initial formation fee, there are ongoing costs that come with maintaining an LLC in New -Mexico. One of the most significant expenses that business owners face is the annual report fee. LLCs in New Mexico are required to file an annual report with the Secretary of State and pay a fee to keep their businesses in good standing. Failing to file the annual report and pay the fee can result in penalties and the potential loss of good standing status.
Another cost that business owners should be aware of is the franchise tax. In New Mexico, LLCs are subject to a franchise tax, which is based on the company’s net worth or total assets. This tax must be paid annually, and failure to do so can result in fines and other penalties.
In addition to the fees associated with the formation and ongoing maintenance of an LLC, business owners should also consider the costs of hiring a registered agent. In New Mexico, LLCs are required to have a registered agent who can accept legal documents on behalf of the company. Business owners can choose to serve as their own registered agent, but many opt to hire a professional service to manage this responsibility.
Overall, maintaining an LLC in New Mexico does come with costs, but there are also benefits to consider. LLCs provide limited liability protection to their owners, which means that personal assets are typically shielded from business debts and legal liabilities. This protection can give business owners peace of mind knowing that their personal finances are not at risk if the business runs into trouble.
In conclusion, while there are costs associated with maintaining an LLC in New Mexico, the benefits often outweigh the financial commitment. Business owners should carefully consider the expenses involved in creating and maintaining an LLC and weigh them against the advantages of this business structure. By understanding the costs and benefits, business owners can make informed decisions about whether an LLC is the right choice for their business.
In Conclusion
The cost of New Mexico is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.
Hola soy Arquitecto Mexicano, me interesa prestar mis servicios en Estados Unidos mediante una LLC en el estado de Nuevo Mexico, soy residente mexicano en el estado de Baja California.