Meow Technologies, Inc.
Incorporating a business in New Mexico can be an affordable and straightforward process that also allows business owners to protect their personal assets. The Land of Enchantment offers business owners privacy protections and tax benefits that make it an appealing state to form an LLC or corporation in. This comprehensive guide will walk you through the entire process step-by-step.
New Mexico lets business owners form limited liability companies (LLCs) and corporations to register their companies with the state. The primary advantage of incorporating is that it separates your business assets and finances from your personal assets. As a corporation or LLC owner, you cannot be held personally liable if your business is sued or goes into debt beyond the extent of your investment in that company.
Incorporating also unlocks additional credibility, tax savings, and funding opportunities you would not have access to as a sole proprietorship. And in New Mexico specifically, LLCs and corporations safeguard the privacy of business owners by allowing anonymity when filing paperwork.
Other draws of launching in New Mexico include:
Follow these eight steps to legally create your business structure in New Mexico:
The first decision is whether an LLC or a corporation best fits your business needs. Main differences include:
Make sure another business isn't already using your preferred name by searching New Mexico’s business entity database. Then file paperwork ($25 fee for corporations, $20 for LLCs) with the Secretary of State to officially reserve your business name for 120 days.
All New Mexico corporations and LLCs need a registered agent with a physical address in the state (not just a P.O. box) on record to receive important legal documents. You can act as your own registered agent or hire a registered agent service to handle this.
To form an LLC, file your Articles of Organization. Corporations file Articles of Incorporation. The filing fee ranges from $100 to $1,000 depending on the number of shares, and paperwork must be mailed/delivered by hand.
Research whether your industry needs additional licenses or permits from the state or county/city in which you plan to operate. Common examples include healthcare, construction, alcohol sales, etc.
Apply for free EIN instantly from the IRS, which you’ll need to open a bank account, pay taxes, and hire employees later on.
Draft corporate bylaws or an LLC operating agreement to outline member roles, voting procedures, ownership breakdown, rules for distributions, amendments protocols, and more. Hold an initial meeting to appoint positions and adopt bylaws/operating agreement.
Visit a bank or credit union to open a bank account in your LLC or corporation's name using your EIN, filed Articles of Organization/Incorporation, and official ID.
For more information, take a look at our article on the key benefits of business checking accounts.
After checking these basics off your list, some next moves include: