Many New Mexico entrepreneurs choose to form a limited liability company (LLC) because of the many benefits of this business entity type. An LLC provides liability protection, for instance, so your assets are not at risk if your business is sued or cannot pay debts.
An LLC is a “pass-through entity” for tax purposes, meaning that the LLC itself is not taxed. Instead, income passes through the business to the LLC owners or members, who report it on their tax returns. LLCs also offer flexibility in terms of management and taxation.
Creating an LLC is relatively straightforward, but ensuring it’s done correctly is crucial to getting your New Mexico business on the right foot. The most critical step is filing articles of organization.
What Are Articles of Organization for an LLC?
The articles of organization is a legal document filed with the New Mexico Secretary of State to form an LLC officially. It will include your business name, address, registered agent information, and more, as detailed below.
First, Select a Registered Agent for Your New Mexico LLC
New Mexico requires LLCs to appoint a registered agent, a person or company authorized to accept and respond to official business correspondence, such as legal, tax, or financial documents.
The registered agent ensures all required notices and documents are received. In New Mexico, the registered agent can be an LLC member, individual, or entity that meets state requirements. In New Mexico, a registered agent must:
- Be 18 years or older
- Have a physical address in the state
- Be available during regular business hours
- Be registered to operate in the state, if it’s a business
Many business owners hire a registered agent service to ensure their LLC stays fully compliant and for convenience.
If you choose to be your registered agent, you must be at your registered agent’s address for all business hours. A registered agent service allows you to be wherever you need to be to run and grow your business.
How to Submit Articles of Organization in New Mexico
To start, visit the Corporations and Business Services Division website and create an account to access the articles of the organization online.
In New Mexico, the articles of organization require the following information:
- LLC name
- Principal office address
- Registered agent information
- Registered office address
- Business purpose
- Governing authority type
- Member or manager information
- Organizer information
Once you’re signed in, you’ll need to replenish your account balance to pay online with a credit or debit card. Click “Replenish Account.” If you’re going to pay with eCheck, you can skip this step.
Go to the Corporations menu and choose “Domestic (NM) LLC Formation” to be taken to the articles of organization form.
You’ll go through a series of screens to enter all the required information and then to a page where you can review the information. Then, click continue to go to payment.
The filing fee is $50. You must file your articles of organization online, as there is no paper form available. You should receive confirmation in one to three business days.
Some entrepreneurs hire an LLC formation service like ZenBusiness to handle this step, saving time and ensuring the process is done correctly.
Draft an Operating Agreement
New Mexico does not require an operating agreement, but it’s a crucial document that defines members’ ownership percentages and profit allocations. Those are the two key elements, but it should also include the following:
- Each member’s rights and responsibilities
- Management structure and roles
- Voting rights of each member
- Rules for meetings and voting
- What happens when a member sells their interest, becomes disabled, or dies
You can find operating agreement templates online, but it’s best to have them drawn up or reviewed by an attorney. The language of an operating agreement is crucial and can often help determine how member disputes will be resolved. Here you can obtain a free operating agreement template for your New Mexico LLC.
Contact Information for the New Mexico Secretary of State
New Mexico Secretary of State Website
Business Services Online Portal
New Mexico Secretary of State Building
New Mexico Capitol Annex North
325 Don Gaspar, Suite 300
Santa Fe, NM 87501
Business Services Division
Phone: 505-827-3600 (Option 1)
Email: [email protected]
There’s only one way to create an LLC in New Mexico: successfully filing articles of organization. If you make any mistakes, you’ll likely have to refile, so be sure to do it right the first time and set your business up for serious success!