Forming an LLC in New Mexico (Preliminary information)
In this article, we discuss in detail the costs of forming an llc in New Mexico, how you can form your company at the most affordable price, and the steps you need to take.
The state of New Mexico is a state that attracts the attention of foreign entrepreneurs for forming an LLC company, especially because there is no annual franchise tax ($0). Foreigners who do not live in the United States can form an llc remotely in the state of New Mexico. You are required to maintain a registration agent in the state (as in other states).
New Mexico is a state with less red tape, confidentiality, and especially no annual filing fees. Amazon is preferred for remote entrepreneurs such as Dropshipping, online marketing, digital product and service sales.
in New Mexico are simple to set up and have little to no maintenance requirements. It has various options and flexibility regarding taxation. It allows multi-member LLCs from single-member businesses, which is why it's so popular. More than 9,000 new businesses are established in the state every year.
There is no annual filing fee in the state of New Mexico. In the initial setup, the state charges the entrepreneur a $50 filing fee, but each subsequent year the company owner pays no extra fee to this state. The lack of annual expenses makes this state very attractive.
Costs
LLC Company Formation Prices
| Service | Price | One-Time Payment | Annual Payment |
| Fee to be Paid to the State During LLC Company Formment | 50$ | ✔ | – |
| Annual Filing Fee | 0$ | – | – |
| Total: | 50$ | – |
Registered Agent Selection
Agencies that provide services for entrepreneurs who do not reside in the United States to form an llc, receive official documents from the state, and ensure that the company remains healthy are called Registered Agents.
When you decide to form an LLC in Usa, Northwest is one of the best options. Northwest provides a free mailing address for your company.
There are also different agencies, you can access the full list and detailed review page of other Registered Agent companies that establish LLCs from this link .
How to Form an LLC in New Mexico? Steps
You can form a remote LLC online in the state of New Mexico. For installation, you need an agency and a postal address in the USA, details are below.
How to Form an LLC in New Mexico?
You can form an LLC remotely online in the state of New Mexico, you do not need to visit the state in person. Additionally, non-US citizens are not required to have an ID or passport. You will need a registered agent for the installation, who will prepare and file the necessary documents online for you with the state. If you do business with the Northwest agency, you do not need to pay extra for the company address because this agency has offices in all US states and allows you to use its offices as your business address. Other details are below.
- Determine Your Company Name: First, you must determine the name of your LLC company to be established in New Mexico. Make sure that there are no conflicts with company names already in the state database and that the name you choose is unique. Do a search on the state website If you are having trouble accessing the state website from your browser, you can use a US-based VPN or Opera Browser. Choosing a Name for an LLC Company for name rules .
- You can get a domain name for your company: Check if the website domain name you will create for the business name you choose has been registered before. With Namecheap you can quickly register an llc domain name so that no one else can get and use your domain name in the future.
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- Apply Online: Determine a Registered Agent to establish your company and keep it active. Northwest is among the most affordable and highest quality options. the Northwest LLC formation application page and order them to form your company online. Northwest will fulfill all transactions for you according to the order form in your application and will be your Registered Agent in this state
- Operating Agreement: An Operating Agreement contains the rules between LLC members. This includes, but is not limited to, the rights and duties of each member, how profit/loss is divided, and how taxes are paid. Even if you own the LLC yourself (“Single-member LLC”), it is highly recommended that you keep an Operating Agreement handy. You do not need to send the Operating Agreement you have prepared to the New Mexico Secretary of State or any other government agency; just keep a copy. Northwest will prepare a contract for you free of charge after company establishment and deliver it to you electronically.
The approval and setup time for an LLC company is an average of 2 business days for the state of New Mexico.
What happens after your LLC company is approved in the state of New Mexico?
- After the company is formed, your LLC formation document is delivered to you digitally by your agency.
- Once you receive the incorporation documents (digitally), obtain a Federal Identification Number (EIN) from the IRS. Without EIN, you cannot open a bank account or register for payment systems such as virtual POS (stripe) or paypal. You can also apply for an EIN yourself by filling out form SS4 and faxing it to the IRS. the guide here . The other option for EIN is to get a paid service. You can get EIN application service from us for $ 29. We can process it on the same day and carry out the entire process for you. this order form after company setup .
State Requirements and Taxes
Federal Taxes: As previously mentioned, LLCs are taxed as individuals unless otherwise noted. This means that LLCs do not pay income taxes directly to the federal government. In this case, company owners indicate their business income and losses in their personal statements. LLCs are flexible in their tax structure; you can choose to be taxed like a corporation if you wish. In this case, you will need to submit a separate corporate tax return.
State: Similar to federal income taxes, New Mexico's income taxes are reported on the LLC owner's personal returns. The state does not require LLCs to pay a “franchise” or “privilege” tax for doing business in the state. Still, all New Mexico businesses with physical locations there must obtain a CRS tax identification number through the New Mexico Department of Taxation and Revenue So, state income taxation is pretty straightforward.
Sales Tax: New Mexico does not have a Sales Tax, but imposes a Gross Receipts Tax on businesses that generate income through certain business activities ( here ).
If You Have Employees: If you employ workers in your state-registered LLC, you will need to pay into the Unemployment Insurance fund Additionally, businesses with physical locations are required to pay Withholding Tax ( must register with the Taxpayer Access Point ). Industry-specific taxes are required in the state. For example, there are different taxes for contractors, motor vehicles, and more. the details here .
For more information about taxes, you can check out the article Taxation in America
Forming an Online Company with Northwest Video
16 Comments . New Comment
Hello, I paid my fee for company formation, but it asks for extra information for Federal, such as EIN, but I have not received approval for company formation yet, so I do not have an EIN number, what can I do about this?
Hello,
If you formed your company from Northwest through our reference link, you can pre-apply by filling out the form below.
https://startupsole.com/ucretsiz-ein-basvuru-kampanyasi/
We will receive your ten applications and send you the necessary information via e-mail. After your company is formed, you can apply for ein number.
Hello, I founded the company in New Mexico and my EIN number has arrived, but I have not made any transactions yet. Do I need to file a tax return?
Hello,
you can take a look at this article: https://startupsole.com/amerika-disindaki-lccler-icin-form-5472-gercegi/
On behalf of the company we will form in New Mexico, USA, we would like to apply to Turkish banks with a potential tax number from the tax office in Turkey and open an account. For this reason, we need to get Apostille. Can you please inform us how much our apostille costs and how long it will take?
Hello,
After completing the LLC setup with Northwest Registered Agent, you can order Apostille service by selecting your state from the fillings field in the Services section of your customer panel.
The price is 400 USD, including the mailing of the signed document to your address and the state fee.
After the company is formed, you can easily order an Apostille from the Northwest panel.
Enjoy your work.
Frankly, I was really confused. I sell digital design products only for paypal and stripe. I aimed to form an llc in the USA. That's why I need to start an llc in a tax-free state. Would New Mecixo be the right choice? For example, after the company was formed, I earned $2000 annually with my PayPal, do I pay taxes or what are the limits? Thank you
Hello,
Actually, there is no such thing as the concept of a tax-free state. Your source of income is important. Mexico is the most logical state because it has no annual expenses.
Many people like you who are in the digital product business have formed companies in New Mexico.
You do not pay taxes with an annual turnover of 2k from the USA.
Our article below will answer all your questions regarding this tax issue.
https://startupsole.com/abd-vergi/
Thank you for your answer. My sales will be a maximum of $10,000. I see $100,000 for New Mexico. So will I need to issue an invoice for each sale? I will start this process with Paypal and Stripe. I think I will earn a maximum of $2000 in the first year and the average amount of each sale will be $10.
Thanks.
You misunderstood, the state where the company is formed is not important. Just because your company is in Mexico does not mean that you will sell to people in that state. The state where your customers are located is important.
Please read the article in the link in the previous comment carefully.
Hello, with your guidance, I decided to establish a company in New Mexico and I will make a transaction with your Northwest agreement. But some questions emerged through research. I would be very happy if you answer.
1- When I made a review, some comments mentioned that things were difficult because there were not many foreign companies in New Mexico. Is there such a situation?
2-We will provide services such as hosting, server sales, cloud service sales, software and consultancy. Do we need to get something like a certificate/license for these jobs in this state?
3-I read somewhere that there is no need to submit an annual report/declaration. Is this true?
4-I have read your articles on invoices, unsigned invoices in appropriate format will be sufficient, right?
We will receive payments through the integration in our system with 5-Stripe or similar system, this will not be a problem in New Mexico, right?
1- Since you are not a resident of the state of New Mexico, you will not have any communication. The small number of foreign companies does not mean that business cannot be done, otherwise they would not allow it at all. There are many people who comment, it is important who comments, you can also comment on the internet :)
2- If your servers or office will be located in this state, you need to get a permit and certificate, but if you are not located there, it is not necessary.
3- It is true that there is no annual report or annual payment in this state.
4- In US LLC companies, there are no requirements such as invoice registration, e-invoice registration, etc. It is the responsibility of the company owner to create the invoice format. There are also cloud software such as freshbooks to automate this.
5- Stripe does not look at the state, all you need is your company's EIN. More importantly, Stripe is suitable for what you do, rather than the state in which the company is located. Stripe application must be made with a website that complies with the policies.
Even if your company is in the most prestigious state or even if you are a US citizen, Stripe may not approve your account if you do not apply with a project that complies with the policies.
I applied for an llc in Newmexico through Northwest. I have not received an EIN number, I do not carry out commercial activities. Will I have any tax debts? Should I close the company?
No, if there is no ein number, no declaration etc. You do not need to give
Hello,
Is there a RESALE Certificate in the state of New Mexico? If there is, how to get it?
Thanks for the information
Enjoy your work.
Hello,
Yes, there is, but you may need to do some research on how to get it. There is an article here: https://thetaxvalet.com/blog/how-to-register-for-a-sales-tax-permit-in-new-mexico/
If you are dealing with Amazon business, it might make more sense to form an LLC in the state of Wyoming instead of NM because WY is more advantageous and easier for this type of transactions.