There’s no specific rule set when starting a New Mexico Corporation, but there are some points to remember when making a name for your New Mexico small business:
To ensure that there are no existing names similar to your business name, you can use the business name database of New Mexico’s Corporations Division. If you want to reserve your chosen business name you can have it reserved for 120 days.
All you need to do is file an application for reservation before the New Mexico Public Regulation Commission Corporation Bureau. Prepare a filing fee of $25.
For your New Mexico Corporation to be legally formed, you need to file your Articles of Incorporation before the New Mexico Public Regulation Commission Corporation Bureau. Some of the information that you need to prepare include the following:
You can file your articles of incorporation online or through mail. Filing fee will mainly depend on the number of shares the corporation is allowed to issue. Your filing fee can cost you $100 to a maximum of $1000.
A mandatory requirement in the majority of states is appointing a registered agent for every business. New Mexico Corporations need to have an agent to accept service of process notices from the state.
By hiring an agent, you freely accept your responsibility to accept legal documents and papers in cases where your business gets sued. Some of the requirements that you need to consider when hiring a registered agent include the following:
These are just the basic requirements, you can add standards of your own as well.
A Corporate Records Books must be set-up and maintained to be able to keep track of important business activities such as your corporation’s pertinent papers and documents, minutes of Director and Shareholder meetings, stock certificates and a lot more.
If you want to purchase a Corporate Records Book, you can buy one at the local office supply shop or you can place an order at Amazon.
If you’re the person who signed your Articles of Incorporation, you should immediately appoint the initial corporate directors who will be part of the Board of Directors of your New Mexico small business. These directors will appear before the first or annual meeting of corporate shareholders.
Considering that the incorporator is you, the next thing that you have to do is fill-out an “Incorporator’s Statement” where the names and addresses of our initial directors are recorded. You need to sign this document and have it placed in your corporate records book.
Corporate formalities must be followed for you New Mexico Corporation, thus, you have to schedule your Board of Directors First Meeting as early on.
In this meeting, directors should designate corporate officers, create bylaws, choose a business bank, permit the issuance of stocks, discuss the corporation’s fiscal year and a lot more.
Once the meeting is done, have everyone sign the minutes of the meeting and a copy should be placed in the corporate records book.
Aside from being a mandatory requirement, complying with state taxes and licensing are also part of maintaining your business. Below is a list of steps and requirements that you need to follow in order to legally start your New Mexico small business.
For your business licenses and permits, you may have to visit your local county office or city hall to inquire for the specific permits that you need to obtain based on the type of business you’re running.
As you start a Corporation in New Mexico, it is very important to keep your personal and business finances separate by opening a business bank account. This keeps your personal liability at a minimum and makes tax time much more simple.
There are many options for opening a business checking account like Chase, Bank of America, or Citibank. Be sure to do your research and decide which is right for you.
Now that you have followed the steps above, you are officially a New Mexico Corporation. Other than those 8 steps that are based on state guidelines, here are 3 additional steps based on best practices for starting a successful Corporation. Not required, but highly recommended.
A business plan is not a mandatory requirement, but it’s best that you write one so you’ll be guided accordingly as you start your business in New Mexico. If you’re trying to raise capital or funding for your startup, a business plan is a powerful tool that will help you obtain this.
To start writing your “funding-ready” business plan, you can use any of these two useful resources which you can access for free or at an affordable price.
These days having a professional website is important, especially if you want to be taken seriously. With WordPress, you’ll be able to build a professional yet less complex website for your Corporation in minutes.
Recommended Resource: Learn more about WordPress and get started through this step-by-step guide that walks you through the entire process.
Your corporate bylaws are internal legal documents made to outline your rules of corporate operations. Since the corporate bylaws is not mandatory requirement, it is not filed before the state.
Corporate bylaws are important for two reasons: first, it enables you to create the operating rules of your corporation and second, it will show banks and other financial institutions and most importantly, the IRS that your New Mexico Corporation is legitimate.
The whole process of forming a New Mexico Corporation basically ends here. Understand all these procedures, requirements and steps, after that you’re good to start. Good Luck my friend!
Please note that this article is meant only for informational purposes. It is not an alternative or a replacement of professional legal advice. For specific queries and questions on starting a business in New Mexico, you can consult your attorney or legal counsel.