The first and most important step of incorporation is choosing a legal entity by which you can structure your New Mexico small business. There are numerous entities that you can choose from: Sole Proprietorship, General Partnership, S-Corporation, Corporation, Cooperative and Limited Liability Company.
It is vital that you choose your business structure carefully because it will play a big role in your company’s operations. Your entity type will also determine the advantages and perks that you’ll be able to take advantage of so you need to know the pros and cons of every business structure.
Aside from taking into consideration your business’s requirements and needs, here are some factors that you may want to consider when choosing a business structure:
To further help you choose the right entity for your New Mexico small business, here are some useful resources that you can check out.
As you learn how to incorporate in New Mexico, you have to ensure that every requirement and step adheres to standards set by the state.
Having said this, it is vital that your sources of information, deliverables and the rest of your incorporation requirements come from the assigned agency for this process – the New Mexico Secretary of State Office. You can visit their office or call their phone numbers to verify the requirements needed directly.
Now that you have followed the steps above, you are officially a New Mexico business owner. Here are 5 additional steps to help you start a successful business.
This is one of the most important part of the incorporation process because without being able to complete all the requirements, the state of New Mexico will not allow you to operate. After you’ve filed your Articles of Incorporation, there are other tasks that you need to get done. Here’s a list of some of them:
These are just a few of the additional tasks that you may need to complete. Internal documents like business plans, corporate bylaws, operating agreements, among others must also be completed before launching your New Mexico startup.
As you start a business 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.
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 business in minutes.
Recommended Resource: Learn more about WordPress and get started through this step-by-step guide that walks you through the entire process.
Even after you’ve completed all these requirements, you need to stay compliant all throughout your business’s existence.
For maintenance and compliance purposes, you need to make sure that you renew and obtain necessary documents and requirements that are needed every year or in the succeeding years while you operate your business. This may include annual reports, regular tax compliance and renewal of your existing licenses and permits.
Simple right? Incorporating your New Mexico small business can really be challenging, however, it doesn’t need to be difficult. If you follow this simple guide and do a little studying on your own, you can definitely complete the process successfully on your own. But, if you’re unsure and you would like to seek assistance, you can consider using incorporation services like Incfile and Legal Zoom.
The resources that we mentioned in this guide are our partner services. For every reader who decides to use these resources, Startup Savant gains a little commission and a portion of this goes to DonorsChoose.org for children’s education. To date, we have assisted over 36,000 students and we would like to create a larger impact in the future. If you want to help us with this cause, you can do so by checking out our impact page – no additional cost on you!