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
- Taxes Payable to New Mexico Department of Revenue
- Cost Comparison Between States
- Other Costs
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.
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|
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.
- 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
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.
When it comes to forming a Limited Liability Company (LLC), there are many variables to consider. One of the most important considerations is the cost involved in maintaining the LLC once it has been formed. In the state of New Mexico, LLC maintenance costs can vary depending on different factors.
One of the first factors to consider is the fee associated with registering the LLC. The state of New Mexico requires all LLCs to pay a one-time registration fee upon formation. This fee can vary depending on whether you form your LLC online or by mail. The current fee schedule for online filing is lower than the fee schedule for mail filing. Therefore, forming an LLC online can save you more money in the long run.
Once the LLC has been formed, annual reports must be filed with the state of New Mexico. Failure to file these reports can result in penalties, including dissolution of your LLC. The annual report fee for a New Mexico LLC is generally considered to be relatively low when compared to other states. Additionally, the annual report process can often be completed online, thereby eliminating any filing costs associated with a physical mailing.
Another cost consideration is the tax implications of maintaining an LLC in the state of New Mexico. The state has a gross receipts tax which may apply to LLC income. There is no income tax charged for Limited Liability Companies at the state level, but additionally, an LLC will have to register for and collect New Mexico’s Gross Receipts Tax (GRT), the rate of which is based on the LLC’s locations, and the nature of the goods or services provided. In most cases, the costs associated with meeting GRT requirements pale in comparison to the benefits offered by operating as an LLC in New Mexico.
An LLC can also potentially benefit from tax abatements and exemptions programs in New Mexico. The state offers tax incentives as a way to encourage business growth, the key influence to reduce cost in the long term. Through its tax incentive programs, the state reduces tax liabilities for qualifying LLCs and other small businesses, including tax credits, offsets for qualified expenses, and discretionary incentives, among others.
Finally, depending on the size and complexity of an LLC, costs associated with legal and accounting services in New Mexico can also add up. LLCs are not required to have an Attorney at formation or throughout the lifecycle of the business entities, but competent counsel is always helpful when questions arise. An Accountant is beneficial at tax season(s) when returns are being completed and in providing guidance or navigating through some of the issues reviewed previously.
Overall, the costs associated with maintaining an LLC in New Mexico are generally manageable and straightforward. However, starting and maintaining an LLC requires a financial commitment which should be considered according to the business objectives and frameworks of every entrepreneur intending to begin a journey as part of a Limited Liability entity. It is essential to understand all the costs and requirements needed before committing to this legal structure to ensure that the short-term and long-term financial goals and milestones are being met.
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.
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.
1 thought on “LLC Cost in New Mexico – How Much to Pay for an LLC”
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.