How to Form an LLC in New Mexico | 2025 Guide

Big advantages await entrepreneurs who form an LLC in New Mexico. With low startup costs, strong privacy protections, and no annual reporting requirements, New Mexico has become popular for business owners seeking simplicity and affordability.

Before you start, though, you’ll need to understand the state’s unique rules and regulations to ensure your LLC stays in good standing. This guide will walk you through each step so you can launch your business with confidence.

Do you send and receive global payments?

Try Wise Business >>

Wise Trustpilot Score: Excellent 4.3 out of 5 stars
No minimum balance requirement and no monthly fees
Integrates with QuickBooks, Xero, Sage, and more

Still considering in which State to set up your LLC? Check out these similar posts 🔍
How to form a Maine LLC How to form an LLC in Montana How to start an LLC in California

How to Start an LLC in New Mexico (Step-by-Step)

There are several key steps to get started with your New Mexico LLC:

#1 - Choose Your Business Name

The state of New Mexico has some regulations dictating business naming practices: for example, the name must include “Limited Liability Company,” “LLC,” or “L.L.C.,” and it must be distinguishable from existing businesses in the state. You can’t include restricted words like “bank,” “attorney,” or “university.”¹

The New Mexico Secretary of State offers a business search tool to check name availability. If you want to reserve a name before filing, you can do so for 120 days by paying a $20 fee.²

#2 - Appoint a New Mexico Registered Agent

Your registered agent acts as the main point of contact between the state and your LLC.

To ensure it’s easy to get in touch, your agent needs to have a physical address in New Mexico and be available during regular business hours.

While you can serve as your own agent, you may find it more suitable to appoint someone you trust or hire a New Mexico registered agent service instead.

#3 - File Articles of Organization

The next step to forming your New Mexico LLC is filing the Articles of Organization with the New Mexico Secretary of State online. The filing fee is $50, making it one of the more affordable options in the country.³

To complete the form, you’ll need to provide your business name, registered agent information, management structure, and details about members and/or managers.

Once submitted and approved, this filing officially establishes your LLC as a legal business entity in New Mexico.

#4 - Create an LLC Operating Agreement

While New Mexico doesn’t legally require an LLC operating agreement, it’s highly recommended to create one for your business.

An operating agreement serves as a foundational document that outlines ownership, management roles, profit/loss allocation, and the procedures for changes or dissolution.

The benefits include enhanced asset protection by clearly defining the separation between the business and its owners. Plus, the agreement helps prevent and resolve disputes by outlining each member’s ownership percentage and management responsibilities ahead of time.

#5 - Apply for an Employer Identification Number (EIN)

While it’s required for multi-member LLCs, single-member LLCs are strongly encouraged to apply for one as well. AN EIN is essential for opening a business bank account, which helps keep your business and personal finances separate. Also, an EIN is often required to hire employees, file certain federal and state taxes, and apply for various business licenses and credits.

The application is free. You can apply for an EIN directly through the IRS website or submit your application by mail or fax if you prefer.

#6 - Register for State Taxes and Business Licenses

Next, you’ll need to register for a New Mexico Business Tax Identification Number with the Taxation and Revenue Department.

New Mexico doesn’t require a general state business license, but local permits or professional licenses may be necessary depending on your business activities. Check with the state government to confirm which business licenses are relevant for you.

#7 - Open a Business Bank Account

A dedicated business bank account separates your business finances from your personal funds. This is important for maintaining the limited liability protection that an LLC provides by ensuring your assets remain safeguarded in case of legal or financial issues involving your business.

A separate account also simplifies bookkeeping, tax preparation, and financial management by keeping all business transactions organized in one place. Plus, it enhances your professional image with clients and vendors, making it easier to track income, expenses, and cash flow accurately.

#8 - Maintain Compliance

Unlike other states, New Mexico doesn’t require LLCs to submit annual reports or pay annual fees. Still, members will need to comply with the state’s tax and licensing obligations to remain in good standing.

Where does Wise Business fit in your business? Send Fast and Secure Business Payments

---

What are the Business Requirements for a New Mexico LLC?

To legally operate an LLC in New Mexico, you must:

• File Articles of Organization with the Secretary of State.
• Appoint and maintain a registered agent with a physical address in New Mexico.
• Register for a state tax ID number.
• Register for any necessary local or professional licenses.
• Comply with tax and licensing obligations.

What are the Benefits of Starting an LLC in New Mexico?

New Mexico offers several advantages for LLC owners.

First, its $50 formation fee is among the lowest in the country, and there aren’t any annual reporting or franchise tax fees. These low costs and reduced administrative burdens are attractive to many entrepreneurs.

Also, New Mexico doesn’t require LLC members or managers to list their personal information on public filings, offering a high level of anonymity for LLCs operating in the state.

LLCs are taxed as pass-through entities by default, meaning profits and losses pass through to members’ tax returns. Plus, New Mexico’s corporate income taxes are moderate, and there’s no state-level franchise tax for LLCs.

Combined with the state’s low property taxes, affordable real estate, and low labor costs, it’s a solid option for small and growing businesses.

How Much Does It Cost to Start an LLC in New Mexico?

The minimum cost to start an LLC in New Mexico is $50, which covers the filing fee for the Articles of Organization. Additional costs may include:

• Name Reservation (optional) - $20
• Certificate of Good Standing - $25
• Registered Agent Service (optional) - Varies
• Local/Professional Licenses - Varies
• Foreign LLC Registration - $100

On the plus side, there aren’t any annual reporting requirements or franchise tax fees in the state.

Can I Open an LLC in New Mexico Without Living There?

Yes, you can open an LLC in New Mexico without living there. However, you’ll need to appoint and maintain a registered agent with a physical address in the state in case the government needs to contact you.

Can a Nonresident Open a Company in New Mexico?

Yes, nonresident and foreign nationals can form and own LLCs in New Mexico. The process is the same as for residents, but nonresidents will need to ensure they have a registered agent in the state. Also, they may need to get an EIN from the IRS.

Open a Wise Business Account: Manage Your US Business Finances With Ease

Once you have established your business with an LLC, you’ll need a business account to manage your US finances. A Wise Business account is easy to open online and comes with no monthly fees. You can convert funds from your home currency to USD with low, transparent fees.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to countries.

Some key features of Wise Business include:

Major local account details to receive international payments with ease No monthly account fees just a simple one-off fee for account details Receive payments from e-commerce platforms such as Amazon or via Stripe. Create invoices using the Wise invoice generator or invoice templates. Accounting integrations, including a QuickBooks Bill Pay connection. Bill payments will be synced, matched, and categorized in QuickBooks for simple reconciliation. Access to BatchTransfer. Fast payment of up to 1,000 people.

Open a Wise Business account online

Comparison with Other States

Each entrepreneur will have different requirements in terms of costs, privacy, and tax requirements. To help you find the state that’s right for you, we’ve compiled a quick comparison between New Mexico and its neighboring states.

Feature	New Mexico	Arizona	Colorado	Texas
Filing Fee	$50	$50	$50	$300
Annual Report Fee	N/A	N/A	$10	$0 (if <1.23M revenue)
Privacy	High	Moderate	Low	Low
Tax Environment	Corporate tax: 1.7%-5.9%. No franchise tax and no annual report.	Corporate tax: 4.9%. No franchise tax and no annual report.	Corporate tax: 4.4%. Low annual fee.	Franchise tax: 0% for most small LLCs. No state income tax on individuals.
Best For	Owners seeking privacy, low cost, and minimal compliance	Low-cost startups seeking simple compliance	Local businesses seeking low ongoing fees	Larger businesses looking for no state income tax

As you can see, New Mexico offers the highest privacy protections. All four states have no annual report fee, aside from Colorado, which only charges $10 a year. New Mexico and Arizona have low corporate tax rates, while Texas has no personal income tax and no franchise tax for most small LLCs.

New Mexico LLC FAQS

Privacy Protections for New Mexico LLCs

New Mexico doesn’t require the names or addresses of LLC owners to be listed on public filings. Only the registered agent’s information is made public, which means owners can stay anonymous if they use a registered agent service.

Why Do People Use New Mexico for LLC?

Entrepreneurs and investors choose New Mexico for its many benefits. It’s ideal for small businesses looking for low costs and minimal compliance requirements.

• Low formation and maintenance costs.
• No annual reporting or franchise tax obligations.
• High level of privacy for owners.
• Flexible ownership and management structure.
• No residency requirement for owners or managers.

These features make New Mexico particularly attractive for privacy-focused small businesses.

Is a New Mexico LLC Tax-Free?

No, New Mexico LLCs aren’t tax-free. While they don’t pay state-level franchise tax or annual fees, they’re still subject to federal income tax as pass-through entities, and members must report income on their personal tax returns. Also, New Mexico’s gross receipts tax functions similarly to a sales tax in the state.

What Are the Disadvantages of a New Mexico LLC?

Despite its advantages, there are some potential drawbacks to forming an LLC in New Mexico. Namely, most businesses must pay gross receipts tax, which can be higher than traditional sales taxes in some areas. It can be useful to touch base with a tax professional to gain a better understanding of how gross receipts tax will impact your business.

Conclusion

An LLC in New Mexico offers your business strong legal protection, privacy, and affordability. While the state’s filing fees are low and there are no annual reports or franchise taxes, you’ll still need to stay on top of tax obligations like the gross receipts tax.

For many entrepreneurs, the benefits of New Mexico’s minimal compliance requirements and owner anonymity make it a smart choice. Be sure to keep your documents organized, open a dedicated business bank account, and maintain your registered agent to stay in good standing.

---

Sources:

1. Article 19: Limited Liability Companies
2. Application for Reservation of a Domestic Limited Liability Company Name
3. Limited Liability Company Restated Articles of Organization