When you form your LLC in New Mexico, you’ll have to pay certain costs to officially register your business with the state.

In addition to formation and ongoing costs, there will be business expenses like using a registered agent service, building a website, getting business insurance, and so on. So, how much does an LLC cost in New Mexico?

In this guide, we break down the costs associated with forming your LLC, from the New Mexico LLC filing fee to LLC upkeep prices and other business expenses.

Cost of Forming an LLC in New Mexico

When forming your LLC, there are a few different costs that you may incur. These include the filing fee, LLC formation service cost, operating agreement draft, and registered agent costs.

New Mexico LLC Filing Fee

To form an LLC, you must file the Articles of Organization with the New Mexico Secretary of State. The filing fee for the Articles of Organization is $50. You will commonly see this fee referred to as the “state fee” or “filing fee.”

If you choose to use an LLC formation service, you will pay the $50 state fee on top of their service fee. Generally, these service fees start around $29 and increase depending on additional services you purchase.

For more details on the formation process, check out our New Mexico LLC Formation guide.

New Mexico Registered Agent and Registered Office

Every New Mexico LLC is required to appoint a registered agent. A registered agent is a person or entity you assign to receive tax forms, legal documents, or government correspondence on your LLC’s behalf. Registered agent services can cost around $130 per year or more.

Your registered agent can be:

• A registered agent service (most common)
• Yourself (not recommended)
• Another member of the LLC
• A business attorney

New Mexico LLC Operating Agreement

An operating agreement defines the roles and responsibilities of the members or managers in your LLC and will help prevent and solve any business disputes that may arise later on.

The costs associated with the operating agreement come in the drafting of the document. For single member LLCs and simple multi-member LLCs, most people choose to create the document themselves.

You don’t need to file this document with the New Mexico Secretary of State. Using a free operating agreement template or document builder, that means your total cost would be $0.

Optional New Mexico LLC Formation Costs

Along with the fees associated with forming an LLC, there are several optional LLC formation costs that you may encounter.

• Reserve a Name for Your LLC – You can reserve a business name before actually filing your LLC formation documents for a $20 filing fee. You can conduct a business entity name search before reserving to see if your chosen name is unique.
• Certified Document Copies – Certified copies of your New Mexico LLC’s documents show that the documents are valid, correct, and true. The fee for each certified copy is $3.
• Certificate of Good Standing – A Certificate of Good Standing establishes that your business is authorized to operate within New Mexico. Lenders might want to see the certificate. The Certificate of Good Standing fee is $25.

New Mexico LLC Cost and Fees Over Time

There are a few things you need to address to keep your LLC in good standing with the state year after year. Each of these comes with costs and fees.

Registered Agent Fee

If you use a professional registered agent service, you will pay their fee annually. Pricing will depend on the service provider that you use, but usually costs around $130/year. Using a registered agent service will save you time and the hassle of handling important legal documents and filings for the long term.

If you act as your own registered agent there are no maintenance fees. However, for privacy and compliance purposes, we don’t recommend being your own registered agent.

General Costs of Running a Business

Operating a business will obviously come with more than just LLC costs. These are a few of the expenses that you may run into.

Business Bank Account

An LLC separates your personal assets from your business assets. This separation is called the corporate veil. That corporate veil ensures that if your business is sued or incurs debts, your personal assets will be protected from any liabilities.

Commingling (mixing) your personal bank account with your business can pierce your LLC’s corporate veil, which means you are no longer protected by the separated entity of your LLC.

Using a separate bank account to accept payments and pay business expenses is the only way to prevent commingling funds and piercing the corporate veil.

Business Permits and Licenses

Depending on the type of business you operate, your business may need the proper permits and licenses to legally operate in New Mexico.

Alongside the permits required, your business may require industry-specific licenses to operate legally. Examples include licenses like the New Mexico real estate license, New Mexico insurance license, New Mexico adjuster license, and so on.

Business Website

Every business needs a website. There’s no better way to get in front of your customers, build your brand, and grow your business.

Fortunately, the cost and difficulty of creating a business website have come down over the years. Websites are now simple to build and cheap to keep up.

Business Insurance

Having the proper insurance coverage can potentially save your entire business if there is a loss, accident, or lawsuit.

A few of the most common business insurance policies include:

• General liability insurance – Protects against claims of personal injury, physical injury, property damage, and more. This is the most common of all business insurance policies. Learn more about general liability insurance.
• Professional Liability Insurance – Protects against claims of inaccurate or negligent work. It’s most common in the “professional” space where businesses offer services or advice to other businesses or consumers. Learn more about professional liability insurance.
• Commercial Workers’ Compensation Insurance – This type of insurance protects your employees from on-the-job injuries or illnesses. This coverage is required if you have one or more employees. Learn more about Workers’ Compensation insurance.

The cost of business insurance varies widely based on business type, size, location, and other factors. Getting a quote is the only way to understand the actual cost of insurance for your LLC.