How to Start an LLC in New Mexico

A New Mexico LLC is one of the most simple, cost-effective, and quick business structures to form. Even so, navigating the formation process can seem daunting without clear guidance and an actionable plan.

In this How to Start an LLC in New Mexico guide, we’ll break down everything you need to know to form your LLC, from the steps you’ll need to take to get started to maintaining your business structure.

New Mexico LLC

In order to form an LLC in New Mexico, you’ll need to complete the following steps:

1. Name Your New Mexico LLC
2. Pick a New Mexico Registered Agent
3. Submit your LLC Articles of Organization
4. Create a New Mexico LLC Operating Agreement
5. Get an EIN
6. File Your BOI Report

In the sections below, we’ve broken down each of these steps in more detail.

Step 1: Name Your New Mexico LLC

The first thing you’ll need to do before getting started is picking the right name for your LLC. This is important because your business’s name will need to represent your brand accurately, as well as be as memorable as possible.

In New Mexico, all LLC names need to abide by the following statutory guidelines in order to be accepted by the Secretary of State:

• Be Unique: The name of your LLC must be distinguishable from any other existing business names registered with the New Mexico Secretary of State. You can check if a name is already in use at no cost by using this Business Entity Search tool
• Inclusion of LLC Terms: Your chosen name must include certain phrases or their recognized abbreviations. Acceptable options are “Limited Liability Company”, “LLC”, “L.L.C.”, “L.C.”, or “LC”
• Prohibited Words: Your LLC name cannot include certain words without prior authorization; these are words that can be used to imply that your LLC is affiliated to a government body (e.g., State)

Keep in mind that even though picking an LLC name in itself has no cost, there are certain fees that can be associated with the overall process.

Reserve an LLC Name

If you’re not yet ready to launch your business and still need a little more time, you can choose to reserve your desired LLC name for later.

To do this you will need to submit an Application for Reservation of a Domestic LLC Name to the New Mexico Secretary of State, which will need to be accompanied by a $20 filing fee. This will keep anyone from being able to take the name you plan to use for 120 days.

If you need to extend the reservation of your LLC name beyond the initial period, you’ll have to submit a new application once the first one expires; this is because name reservation renewals are not allowed in New Mexico.

Buy a Domain Name

You’ll also want to focus on securing a good domain name (which is your website’s URL address) for your business. For this, try to focus on choosing one that’s easy for customers to remember, relevant to your business, and accurately reflects your brand.

After confirming the domain name you want to use is actually available, you can purchase it through a trusted registrar.

Step 2: Pick a Registered Agent

The next step you’ll need to take toward forming your LLC is to pick a registered agent (RA) — also known as a Resident Agent in New Mexico.

This is an individual or business entity that accepts legal correspondence on behalf of your business, such as service of process, notice of lawsuits, and official government communications; you’re required to continuously maintain one as long as your LLC is active.

Your registered agent can be an individual or business entity, but will need to satisfy the following requirements:

• Must be a resident of New Mexico, at least 21 years of age, and maintain residency in New Mexico throughout their appointment
• Must not have been convicted of a felony or have two misdemeanor violations of the Liquor Control Act in any calendar year
• Must hold a current Servers Certification Permit and attach a copy to the application.
• Must be fingerprinted as part of the qualification process

You should also note that your LLC’s resident agent must officially consent to their appointment by signing the Statement of Acceptance of Appointment by Designated Initial Registered Agent form.

You can even act as your own registered agent if you’re looking to save money — though we don’t typically recommend this as you’re much more likely to suffer fines and penalties due to non-compliance than if you just hire a professional service.

On top of this, you’ll lose any anonymity your LLC would have given you since your name, address, and contact information will be publicly available.

Note: To have a look at some of our other top recommendations, you can also check out our Best Registered Agent Service of 2024 guide.

Step 3: Submit Your Articles of Organization

In New Mexico, the Articles of Organization is the filing document that you’ll need to submit with the Secretary of State in order to officially register your LLC.

This document is structured into several sections — referred to as articles — which will require you to provide the following details:

• Article One: You will need to include the current name of your company, as well as its contact details such as an email address and phone number
• Article Two: You will be required to explicitly specify the duration of your LLC, indicating whether it is intended to operate perpetually or if it will dissolve on a specific date or after a certain number of years
• Article Three: You will need to provide details about your LLC’s registered agent, including their name and physical and mailing addresses in New Mexico
• Article Four: You will need to clarify the management structure of your company. If it is overseen by specific individuals rather than the members, you will have to list the name and address of each appointed manager
• Article Five: You will have to specify whether the LLC is a single-member company, and if not, include the names and addresses of each member

To file your LLC’s Articles of Organization, you have two options:

• Online Submission: You will need to visit the New Mexico Secretary of State Business Services Online Portal, create an account, and follow the instructions in order to submit your documents electronically
• Mail Submission: Alternatively, if you prefer to file by mail, you will need to download this form and send it to the following address:

New Mexico Secretary of State
Business Services Division
New Mexico Capitol Annex North
325 Don Gaspar, Suite 300
Santa Fe, NM 87501

Keep in mind that both submission methods require a $50 filing fee to be paid.

Step 4: Create a New Mexico LLC Operating Agreement

Once this is completed, the next step you’ll need to take is to create an operating agreement.

This is an internal document that clearly outlines the ownership and management structure of your company in order to reduce potential future conflict.

While this document isn’t legally mandated in New Mexico, all LLCs are recommended to have one as it can help maintain both: smooth operations and your LLC’s corporate veil.

A number of companies provide drafting services for operating agreements online, typically for a fee of around a few hundred dollars. However, it’s quite easy to sort this out by yourself if you want to save money, and you can even find a number of free templates online to help with this.

Step 5: Get an EIN

Even though it’s not a legal requirement (unless your LLC has employees or multiple members), all New Mexico LLCs should apply for an Employer Identification Number (EIN).

This is a free, nine-digit number used by the IRS to identify your business and keep track of its tax reporting — much like a Social Security Number (SSN) for individuals.

You’ll need an EIN to be able to:

• Hire employees
• Open a business bank account
• Apply for some business licenses/permits
• Establish a line of credit

On top of this, using an EIN instead of a Social Security Number (SSN) helps to protect your personal information and safeguard your anonymity as the business owner of your LLC.

You can quickly apply for an EIN for your LLC online through the IRS website. You’re also able to submit a paper application using Form SS-4 either via fax to (855) 641-6935, or by mailing it to the following address:

Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Note: Don’t worry if you don’t already have an SSN, it’s not necessary to have one in order to apply for an EIN — instead, you can just leave Section 7b of the application blank and call the IRS on (267) 941-1099.

Step 6: File a BOI Report

Starting January 2024, the vast majority of LLC owners will be required to file a Beneficial Ownership Information (BOI) Report with the US Financial Crimes Enforcement Network (FinCEN).

This is part of an initiative by the U.S. government to stop individuals and entities engaging in illegal or unethical activities from being able to conceal this using “opaque ownership structures”, like shell companies, to hide their true identities.

Existing LLCs will be able to file this report anytime between January 1, 2024, and January 1, 2025, while new LLCs will have up to 90 days after the date they were initially formed to do so (30 days for LLCs formed after the start of 2025).

Keep in mind that failure to file your LLC’s BOI report on time can result in exorbitantly high fines (i.e., $591 per day) or even jail time (up to two years).

Note: Not every LLC owner is required to file a BOI report. For example, companies with more than 20 full-time employees, accounting firms, and banks are exempt. For a full list of filing exemptions, you can have a look at FinCEN’s website.

New Mexico vs Other States

With an initial formation fee of only $50 and no annual reporting requirements, establishing and maintaining an LLC in New Mexico is exceptionally cost-effective.

For comparison, Texas requires an upfront fee of $300 to start an LLC, while, in California, LLCs generating over $250,000 annually face an additional fee of $800 per annum.

Ultimately, keep in mind that the best state to form your LLC is almost always the state that you will be operating in.

This is because otherwise you’ll likely be required to register as a foreign LLC in your home state, meaning that you’ll need to pay registration and maintenance fees twice.

New Mexico Secretary of State Contact Information

Mailing Address:
325 Gaspar Street Suite 300
Santa Fe, NM 87501
Monday – Friday, 8 a.m. – 5 p.m.

Contact Information:

Email: Business.Services@state.nm.us
Phone: (505) 827-4387