What is the annual fee for my new limited liability company (LLC)?
There is no annual fee for filing a New Mexico Limited Liability Company (LLC). You don’t even have to register it with the state. If you want to incorporate in New Mexico, there are many benefits. For example, you’ll be able to keep your assets separate from those of your business. This makes sense because a corporation is owned by shareholders, while members own an LLC.
An LLC is a great way for individuals to protect their assets if something happens. If you pass away, your family won’t lose everything. Instead, your estate will receive whatever money is left over after paying off debts and expenses.
If you’re considering incorporating in New Mexico, here are some things to know about how much it costs to do so.
Formation fees for new limited liability companies (LLCs) in New Mexico
In New Mexico, there are no state taxes on businesses, but there are fees associated with doing business in the state. One such fee is the filing fee for forming an entity called an LLC. In addition to the $50 filing fee, you must pay a $25 processing fee per member. If you don’t want to deal with the paperwork yourself, you can hire a formation service to do it for you. Formation services charge around $150-$250 depending on how many members you have.
The process begins with creating an online account where you provide information about your business. Once your account is set up, you’ll receive a confirmation email. Then, you’ll complete the rest of the forms and submit them to the Secretary of State’s office. When the documents are received, you’ll be notified via email. Your LLC will be officially formed within 30 days.
Licenses for New Mexico LLCs
A New Mexico LLC does not need to pay a New Mexico business license fee if it intends to conduct no business activities within the state. This includes filing documents with the Secretary of State, paying taxes, opening bank accounts, hiring employees, etc.
The LLC itself cannot be taxed because it is treated like a corporation under federal law. However, each member of the LLC must file individual tax returns and pay taxes on his/her income.
An LLC can form without having a physical presence in New Mexico. Its registered agent will maintain its status as an active entity in case of dissolution.
Common Fees for New Mexico LLCs
The state of New Mexico charges a few different fees for forming and maintaining an LLC. Here’s how much it costs to form an LLC in New Mexico.
Fees vary based on the number of members in the LLC.
There are several types of entities that can be formed under the laws of New Mexico. You can form a sole proprietorship, partnership, corporation, limited liability company (LLC), general partnership, limited partnership, unincorporated association, or trust. Each of these entities offers certain advantages and disadvantages. For example, corporations are usually considered legal persons while partnerships are not. Corporations must pay taxes, whereas partnerships do not. If you plan to operate as a corporation, you must file Articles of Incorporation with the Secretary of State within 30 days of formation. This document includes information about the purpose of the organization, the names of directors, officers, shareholders.
Create your LLC Corporation with just 3 easy steps
Other Fees Such As Licenses in New Mexico
In addition to registering a corporation or limited liability company, there are many other fees that must be paid. These include taxes, licenses, permits, registrations, etc. Some states do not require a business license for a nonresident owner. In some cases, a registered agent is required for each entity. This article provides a brief overview of what you need to know about licensing requirements.
Our Registered Agent Fee
We are proud to announce that we now offer a $75 annual fee for registering our business name with the state of California. This fee covers the cost of filing fees, processing fees, and printing and mailing of the registration documents. If you do not want to register your business name with us, please contact us directly for a quote.
The fee does not include any legal representation; however, we provide a free initial consultation to help guide you through the process.
Frequently Asked Questions
How do I set up an LLC in New Mexico?
Domestic LLCs in New Mexico are now required to file their articles of organization online. This includes setting up the name of the entity, how many members it has, and the address where it will conduct business. Foreign LLCs, meanwhile must download and complete a certificate of registration and then mail their paperwork along with $5 filing fee to the Secretary of State’s Office.
Is an LLC necessary in New Mexico?
An LLC provides limited liability protection, meaning it protects your personal assets in case the business loses money or you are sued. However, an LLC does not protect your business name, trade secrets, intellectual property, or brand identity. In addition, forming an LLC requires filing paperwork with state authorities, including paying fees and filing taxes. If you do decide to form an LLC, we recommend doing so early in your business life cycle.
Can I pay myself a salary from my LLC?
You can pay a salary out of your limited liability corporation (LLC). This is known as a “draw,” and you’ll find it under the heading of “Distributions.” If your LLC is taxable, you’re better off paying yourself a regular paycheck rather than having the money come out of your pocket.
The IRS says that distributions are considered income and are subject to federal tax withholding and reporting requirements. Distributions must be reported on Schedule K1, Form 1065, Profit or Loss From Business, and include information such as the amount distributed, the recipient’s name, and whether the payment was received in cash or property.
If you make payments to yourself from your LLC, keep careful records. Make sure you know what happened to each payment. Be sure to report the payments on Schedule K1, and keep copies of those reports. Also, keep track of how much money you paid yourself during the course of the year. At the end of the year, you’ll need to file a final return showing your total earnings and deductions.
In addition to taxes, you may want to consider filing a W2 form for your employees. They won’t receive a check directly from you, but they’ll see their wages listed on Schedule E, Supplemental Income/Loss, attached to the 1040 form. You could face penalties if you don’t file a separate W2 form for your LLC.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.