Step 1) Verify & Secure Your LLC's Name
To secure and register your brand name it must be unique, not too similar to another registered name in New Mexico, and shouldn’t contain any restricted wording.
Keep in mind your LLC name should contain the words ‘Limited Liability Company’ or ‘Limited Company’. Abbreviations for these words like ‘L.C.’ or ‘L.L.C’ are also acceptable. If needed, you can file an Application for Reservation of LLC Name form through that’s good for 120 days.
Filing Fee: $20
Remember, this isn’t optional in New Mexico-- it’s mandatory.
Quick Note: Before you commit 100% to a name, you may also want to check that there’s a decent URL available for your business. Use Weebly to search your options. If there’s a quality domain name for purchase, we advise buying it right away. Even if launching a business website isn’t on your radar right now, it’s going to be soon, and you might as well nail down a domain name that’ll make it easy for customers to find you!
Step 2) Appoint A Registered Agent
As an LLC business entity, the law requires there to be a certified professional to represent your company and receive/process official documents on its behalf - court notices, tax forms, state filings, etc.
- Must be a natural citizen of the state of New Mexico,
- Must have a non-P.O. box street address or office address in New Mexico,
- Must always be available during regular business hours (9am to 5pm) M-F.
So, you can hire 3rd party professional and pay up to $160/yr, or get a qualified agent for free when you start an LLC through IncFile.
Step 3) File Articles Of Organization
Download and print out the Articles of Organization which will need to be filed with the New Mexico Secretary of State’s Office.
Include a Statement of Acceptance of Appointment by your registered agent as well. This form will declare some basics of your brand for the public record including:
- New Mexico LLC name and address,
- Complete name of registered agent and address,
- Hours of operation,
- Ownership & management info.
Filing Fee: $50
Step 4) Get An EIN
Your EIN, or Employer Identification Number, is a federal tracking number similar to social security numbers for individuals.
It allows regulatory and tax departments to track your business activity. They also make it possible to legally hire employees, open a bank account for your brand in the next step, and more.
Step 5) Open A Business Bank Account
How much do you know about, or how experienced are you with business banking? It's similar to personal banking but there's a bit more involved depending on the complexity of your operation, for example how many people use the account, the volume of usage, etc.
Shop around! You've got plenty of local and NM state banks as well as credit unions and large national banks. Who has the best deals and the most to offer? Here’s a quick breakdown article of Business Checking Accounts from some of the biggest banks to begin your research.
Step 6) Draft An Operating Agreement
While not mandated by law or required, we believe you should draft an operating agreement for your LLC even if you're a solopreneur.
It lays down on paper the basic operational rules as well as ownership/management duties and financial responsibilities. It's about being professional and adding a layer of protection for everyone involved and the new LLC status as well.
To get started, consider checking out our list of Operating Agreement templates which you can customize yourself online.
Step 7) Handle LLC Taxes & Licensing
The regulatory environment in New Mexico is great, with plenty of southwestern charm and class.
Depending on a number of variables the amount of red tape could either be quick and easy, or take some time to source all the documents and forms and make sure you're 100% compliant. This is where you'll want to buckle down and make sure you're ready to legally operate.
If you're solo, bookmark the Albuquerque district office of the Small Business Administration and the NM Small Biz Development Center page because they’re likely going to be go-to sources. If you need help, consider professional Business License Research packages that handle most of the leg work.
Need Help Forming an LLC?
If you'd like help forming an LLC in New Mexico, feel free to read our reviews of the two most popular services available.