The first step to an LLC incorporation is to create a unique and appropriate name for your New Mexico LLC. Here are some points that you need to remember when making a business name:
To check for duplicates, you can access the business name database provided by the New Mexico Secretary of State. File a reservation of LLC name application to reserve your chosen name for 120 days before the Secretary of State. You can mail your application together with your $20 filing fee.
One of the major requirements when starting an LLC in New Mexico is to designate a Registered agent for your business. Failure to comply with this requirement may bar you from conducting business within the state.
A New Mexico Registered Agent will play a great role in your business so you need to know the basic requirements when hiring one. Below are some of the basic things that you should take note when hiring your agent:
To start incorporating, you need to file the one of the most important documents and this is your Articles of Organization. It must be filed before the New Mexico Secretary of State’s Office. Some of the information that you have to include are the following:
Your Articles of Organization should include a statement of acceptance of appointment by a designated registered agent. Prepare a filing fee of $50.
An Employer Identification Number is similar to a Social Security Number for individuals. It is a 9-series serial number that enables the Internal Revenue Service to track business activities and state taxes.
Apart from these two purposes, an EIN is also a requirement to open a business bank account, hire employees and file for income tax return. You can obtain this requirement from the IRS website for free.
As you start an LLC 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.
To boost your chances of success, you need to write a solid business plan for your New Mexico LLC. It is essential that you have something that will guide you as you start your business if you don’t want to go off course during the process.
If you want to write your own business plan but you have zero experience, here are some useful resources that you can use to make a plan.
Complying with business permits and state taxes are essential while operating an LLC in New Mexico.
As an LLC owner, you need to understand New Mexico tax regulations as well as your responsibilities as a taxpayer. By having the initiative, you’ll know the tax benefits and deductions applicable to the type of business you’re operating. You can read about this further through the New Mexico Taxation and Revenue website.
Obtaining required business permits and licenses are also mandatory to operate an LLC in New Mexico. This will depend on the nature of the business so you need to visit your city hall or local county office to inquire.
Another requirement that is asked from many states are annual reports or biennial, however New Mexico does not require this from businesses operating under the state.
When starting a business in New Mexico, hiring employees is a major consideration. It is essential that you hire the right employees because they are important in the success of your business.
For now, you may just need a few employees but as your business grows, the demand for more people to strengthen the workforce will present itself so you need to know the rules and regulations that you need to follow when hiring.
An Operating Agreement is not a mandatory requirement when starting an LLC in New Mexico, however, it is highly recommended that you make one for your business.
An Operating Agreement is a legal document that outlines the management structure, terms of ownership and corporate laws followed by your LLC.
It is especially important for LLC’s to create an Operating Agreement because of the leniency when it comes to ownership, operations and a lot of other things. If you want to make your own Operating Agreement, but you don’t have any experience, check out Rocket Lawyer now to create a customized agreement for your New Mexico small business.
The next step when starting a New Mexico LLC is to build a website. This will give you added credibility and help future customers find out more about your products or services.
Without hiring an expensive web designer or building everything from scratch, WordPress is a great option to create a customized business website without having any tech skills. Get walked through the entire process with this step-by-step guide.
This guide is an informational article and should not be used as reference for legal document or advice. If you have questions regarding the process of starting a business in New Mexico, consult your attorney to get professional legal advice.