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

Forming an LLC in New Mexico requires filing Articles of Organization with the New Mexico Secretary of State and paying a $50 filing fee. The process takes just 1-3 business days, and New Mexico has no annual report requirement — making it one of the simplest and most affordable states for LLC formation and maintenance.

New Mexico offers a uniquely easy LLC environment: low filing fees, fast processing, no annual report, and all-online filing. Whether you’re starting a small business, freelancing, or setting up a holding company, New Mexico makes the process straightforward.

Follow these steps to start your New Mexico LLC in 2026.

How to Start an LLC in New Mexico (6 Steps)

Step 1: Name Your New Mexico LLC

Your LLC name must be distinguishable from other business names registered in New Mexico. The name must include “Limited Liability Company,” “LLC,” “L.L.C.,” or “Limited Company” (or abbreviations of these terms). Your name is the first impression your business makes, so choose carefully.

Search the New Mexico Secretary of State’s business name database to check availability. Enter your desired name or keywords to see if any similar names are already registered.

New Mexico naming rules:

• Must be distinguishable from any existing business entity registered in New Mexico
• Cannot include words suggesting it’s a bank, insurance company, or government entity without proper authorization
• Must include an LLC designator
• Cannot contain language implying a purpose the LLC is not authorized to pursue

Tips for choosing your name:

• Check if a matching domain name is available for your website
• Search the USPTO trademark database to avoid potential conflicts
• Choose a name that’s easy to spell, pronounce, and remember
• Consider how the name will appear on business cards, invoices, and your website

Step 2: Choose a Registered Agent

New Mexico requires every LLC to have a registered agent with a physical street address in New Mexico. The registered agent receives legal documents, government notices, and official correspondence on behalf of your LLC. A P.O. Box is not acceptable, and the agent must be available during regular business hours.

Important New Mexico rule: An LLC entity cannot serve as its own registered agent in New Mexico. However, an individual member, manager, or employee of the LLC can serve as the registered agent, as long as they have a physical New Mexico address.

You have three options:

Option 1: Appoint yourself or another member as agent. If you have a New Mexico address, you or another member can serve as the registered agent. This is free but makes your address public record.

Option 2: Appoint any New Mexico resident. A friend, family member, or employee with a New Mexico address can serve as your agent.

Option 3: Use a professional service. Our top recommendation is Northwest Registered Agent ($39/year), which also handles LLC formation for $39 + the $50 state fee. Professional services protect your privacy and provide reliable document handling.

Step 3: File Your Articles of Organization

File Articles of Organization with the New Mexico Secretary of State. As of late 2024, New Mexico requires all business filings to be submitted online — paper filings are no longer accepted. This actually makes the process faster and more convenient.

File through the New Mexico Secretary of State’s online portal.

Filing details:

• Filing fee: $50
• Filing method: Online only (paper filings no longer accepted)
• Processing time: 1-3 business days

Information required on the Articles of Organization:

• LLC name
• Duration (perpetual or specific end date)
• Principal place of business address
• Registered agent name and New Mexico physical address
• Name and address of each organizer
• Whether the LLC is member-managed or manager-managed

Member-managed vs. manager-managed: In a member-managed LLC, all owners participate in running the business. In a manager-managed LLC, designated managers handle operations while other members take a passive role. Most small LLCs choose member-managed.

Step 4: Create an Operating Agreement

New Mexico doesn’t legally require an operating agreement, but having one is strongly recommended. This internal document establishes how your LLC is governed and protects all members’ interests.

Your operating agreement should include:

• Member ownership percentages and initial capital contributions
• How profits and losses are divided among members
• Voting rights and procedures for major decisions
• Rules for admitting new members or handling member departures
• What happens if a member dies or becomes incapacitated
• Procedures for dissolving the LLC

Even single-member LLCs should have an operating agreement. It reinforces your limited liability protection and is typically required by banks to open a business account.

Step 5: Get an EIN

Apply for an Employer Identification Number (EIN) through the IRS website. It’s free and takes about 15 minutes online. Your EIN is your business’s federal tax identification number, and you need it to open a business bank account, hire employees, and file taxes.

Get an EIN even if you don’t plan to hire employees right away. Most banks require one for business accounts, and it keeps your Social Security number off business documents.

Step 6: Register for New Mexico Taxes

After forming your LLC, you’ll need to register with the New Mexico Taxation and Revenue Department for applicable taxes. This is an important step even though New Mexico doesn’t require annual reports with the Secretary of State.

Tax registration details:

• CRS registration: Register for a Combined Reporting System (CRS) identification number at the New Mexico Taxation and Revenue Department
• Gross Receipts Tax: Required if you sell goods or perform services subject to the GRT
• Franchise tax: All New Mexico LLCs owe a $50 annual franchise tax
• Withholding tax: Register if you plan to hire employees

Important: While there’s no annual report requirement, you must still pay the $50 franchise tax each year to the Taxation and Revenue Department. This is separate from the Secretary of State — it’s a tax obligation, not a filing requirement.

New Mexico LLC Costs

Total first-year cost: $50-$399 (depending on whether you use a registered agent service). New Mexico’s $50 filing fee is among the lowest in the country, and the lack of an annual report simplifies ongoing compliance significantly. See our complete guide to LLC costs by state.

Ongoing annual costs: After the first year, your recurring costs are just the $50 franchise tax plus any registered agent service fees. If you serve as your own registered agent (or appoint a member), your ongoing cost is only $50/year — one of the lowest in the nation.

New Mexico LLC Taxes

New Mexico has a state income tax and a Gross Receipts Tax (GRT) instead of a traditional sales tax. The GRT functions similarly to a sales tax but is technically levied on the business rather than the consumer. LLC profits are passed through to members’ personal tax returns by default.

• State income tax: 1.7% to 4.9% (graduated rates based on taxable income)
• Gross Receipts Tax (GRT): 5.0% state rate, plus local rates of approximately 1% to 4% depending on location (combined rates typically range from 5.5% to 9%)
• Franchise tax: $50 annually for all LLCs
• Self-employment tax: 15.3% federal (12.4% Social Security + 2.9% Medicare)
• Federal income tax: Standard pass-through taxation — profits pass to members’ personal returns

Understanding the Gross Receipts Tax: Unlike a traditional sales tax charged to the buyer, New Mexico’s GRT is technically imposed on the seller based on gross receipts from selling goods or performing services. However, most businesses pass this cost on to their customers as a separate line item on invoices. The combined state and local GRT rate varies significantly by location — check the New Mexico Taxation and Revenue Department for rates in your area.

Pass-through taxation: By default, New Mexico LLCs use pass-through taxation. The LLC itself doesn’t pay income tax. Instead, profits and losses “pass through” to each member’s personal tax return. Single-member LLCs report on Schedule C; multi-member LLCs file Form 1065 and issue K-1 forms.

Annual Requirements for New Mexico LLCs

• Annual report: Not required — New Mexico is one of the few states with no annual report requirement for LLCs
• Franchise tax: $50 per year, paid to the Taxation and Revenue Department. Due on the 15th day of the third month after the end of your taxable year.
• Gross Receipts Tax: File and pay GRT returns on a monthly, quarterly, or semi-annual basis depending on your tax liability
• State income tax: File and pay New Mexico personal income tax on LLC profits annually by April 15
• Maintain a registered agent: Must have a registered agent with a New Mexico physical address at all times

Advantages of a New Mexico LLC

• No annual report: New Mexico is one of only a few states with no annual report requirement for LLCs
• Very low filing fee: At $50, New Mexico has one of the lowest LLC filing fees in the country
• Fast processing: Online filings process in just 1-3 business days
• Simple maintenance: Without an annual report, ongoing compliance is minimal
• Low ongoing costs: The $50 annual franchise tax is very affordable
• Privacy protections: New Mexico does not require disclosure of LLC members in public filings

Frequently Asked Questions

How long does it take to form an LLC in New Mexico?

Online filings are typically processed within 1-3 business days. All filings must be submitted online — New Mexico no longer accepts paper filings for business registrations.

Does New Mexico require an annual report?

No. New Mexico is one of a handful of states that does not require LLCs to file annual reports with the Secretary of State. However, you do need to pay a $50 annual franchise tax to the Taxation and Revenue Department.

Can I form a New Mexico LLC if I live in another state?

Yes. You can form a New Mexico LLC regardless of where you live. New Mexico is popular with non-residents due to its low costs, strong privacy protections, and minimal reporting requirements. You’ll need a registered agent with a physical New Mexico address. However, if you do business in your home state, you’ll still need to register as a foreign LLC there. See our how to start an LLC guide for more on choosing the right state.

What is the Gross Receipts Tax in New Mexico?

New Mexico imposes a Gross Receipts Tax (GRT) instead of a traditional sales tax. The state GRT rate is 5.0%, with additional local rates of approximately 1% to 4% depending on your business location. Unlike traditional sales tax, the GRT is technically imposed on the business, though it’s commonly passed on to customers.

Does New Mexico require an operating agreement?

No, New Mexico doesn’t legally require an operating agreement. However, we strongly recommend creating one. It protects your personal liability, clarifies management structure, and most banks require one to open a business account.

Can an LLC be its own registered agent in New Mexico?

No. New Mexico law prohibits an LLC from serving as its own registered agent. However, an individual member, manager, or employee of the LLC can serve as the registered agent, as long as they maintain a physical New Mexico address and are available during business hours.

Do I need a business license in New Mexico?

New Mexico doesn’t have a general state business license, but you’ll need to register for a CRS (Combined Reporting System) ID with the Taxation and Revenue Department if you collect Gross Receipts Tax. You may also need city or county business permits depending on your location and industry.

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