In this article, you will discover the steps to successfully open an LLC in New Mexico.
We will also answer some frequently asked questions that arise in each of these steps.
Let’s get started.
Steps to Open an LLC in New Mexico
Step 1: Choose a Name for Your LLC
The first thing you should do is ensure that your company’s name is available in the state where you will start your LLC. In this case, in New Mexico.
As advice, we recommend that it be an easy-to-remember name, and it must also comply with the following guidelines:
- The name must be unique in the state, and no other company can have the same name. To check if the name is available, you can do a name search at the New Mexico Secretary of State.
- You must use one of the following suffixes: LLC, L.L.C, Limited, Ltd, Company, or Co.
- It cannot include restricted or limited words such as Bank, Attorney, University, as these can only be added if additional requirements of the New Mexico State Government are met.
- Names that can be confused with a government agency, such as State Department, Treasury, FBI, cannot be used either.
Step 2: Choose a Registered Agent
After choosing the name of your LLC, you must designate a registered agent.
A registered agent is the person or business entity responsible for receiving legal documents, government correspondence, tax forms, and other important documents.
Being My Own Registered Agent or Hiring One?
If you are over 18 years old, you can be your own registered agent, or you can hire one.
The differences between these options are that if you are your own registered agent, you will take on responsibilities and obligations, and you must be physically present at your business at all times during business hours.
So if you don’t want to deal with this responsibility, we recommend delegating it.
If you need assistance, Rex Legal offers registered agent services.
Step 3: Register the Articles of Organization
Now you need to register your Articles of Organization with the New Mexico Secretary of State’s office.
You can apply online.
You must also file a Statement of Acceptance of Appointment by the Initial Designated Registered Agent.
Your registered agent must sign a Statement of Acceptance of Appointment, which will be uploaded when you file.
Step 4: Create an Operating Agreement (Optional)
While it’s not mandatory to have an operating agreement to start your LLC in New Mexico, we recommend it.
Why?
Well, let’s first define what an operating agreement is:
It’s a legal document that establishes certain rules, such as who the owners of the company are and how the LLC’s operations will be managed.
So, we recommend creating one to avoid future problems or disagreements that could have implications for your business.
Learn more about the operating agreement here.
Step 5: Apply for your EIN (Employer Identification Number)
The EIN is the Employer Identification Number, also known as FEIN (Federal Employer Identification Number) or FTIN (Federal Tax Identification Number).
It’s a 9-digit number assigned by the IRS (Internal Revenue Service) to identify your business similar to your SSN (Social Security Number).
This identification number is used for:
- Opening a bank account for your LLC.
- Hiring employees.
- For federal and state tax purposes.
Check out our article on how to apply for your EIN.
Frequently Asked Questions When Starting an LLC in New Mexico
Can I create an LLC in New Mexico as a foreigner?
Yes. You only need to register your company as a foreign LLC through mail. You can do it here.
When forming my LLC in New Mexico, can I sell in all states of the country?
Yes. It may depend on your business’s activity and its physical presence in the state. But generally, a company formed in New Mexico can sell in Alabama, Washington, Florida, etc.
How can I apply for my EIN if I don’t have an SSN?
Don’t worry; having an SSN is not a requirement to obtain an EIN. See the information in step #5 to find out how to apply.
We Are Rex Legal and We Are Here to Help You
If you need to create your LLC in New Mexico but find it difficult to do it on your own, don’t worry.
We will guide you through each of the processes to successfully create your business in the United States.
