How to Start Your Own LLC in New Mexico

This step-by-step guide explains how to form an LLC in New Mexico—from choosing a legally compliant business name to filing Articles of Organization, obtaining licenses, and understanding ongoing tax responsibilities.

1. Choose a Name for Your New Mexico LLC

Selecting the right name for your LLC is both a creative and legal process. Your business name should clearly communicate what you do, be easy for customers to remember, and comply with New Mexico's naming laws.

Before deciding on a name, clarify your business concept. Understanding your services, products, and target market makes it much easier to choose a name that aligns with your brand. Many entrepreneurs also seek feedback from friends, colleagues, or mentors to ensure the name is appealing and not misleading.

Once you've narrowed your list, research each option thoroughly. Conduct online searches to see if similar businesses exist, check domain availability, and review social media platforms. Business name generators can provide inspiration, but they shouldn't replace thoughtful brand planning.

New Mexico LLC Naming Rules

Under New Mexico law, your LLC name must include "Limited Liability Company" or an accepted abbreviation such as LLC or L.L.C. The name must also be distinguishable from all other registered businesses in the state.

Your LLC name cannot suggest affiliation with a government agency or include restricted words—such as bank, insurance, or university—unless you receive proper state approval.

After confirming availability through the New Mexico Secretary of State's business search, you should also check the U.S. Patent and Trademark Office (USPTO) database to ensure the name is not federally trademarked.

Reserving a Business Name

If you're not ready to file immediately, New Mexico allows you to reserve your LLC name for 120 days. Name reservations are submitted online through the Secretary of State's business portal.

After creating an account, you'll complete the name reservation form, sign electronically, and submit payment. The reservation fee is $20.

Doing Business As (DBA) in New Mexico

New Mexico does not register DBAs (Doing Business As names). While you may operate your business using an alternate name, that name will not receive legal protection at the state level.

If protecting an alternate business name is important, your best option is to pursue a federal trademark, which provides nationwide name protection.

2. Appoint a Registered Agent

Every New Mexico LLC must designate a registered agent to receive legal notices, tax documents, and official government correspondence.

A registered agent in New Mexico must:

• Be at least 18 years old
• Maintain a physical street address in New Mexico
• Be available during standard business hours
• Be authorized to do business in New Mexico if the agent is a company

You may serve as your own registered agent, but many business owners choose professional services to ensure reliability and privacy.

3. Decide on Your LLC's Management Structure

New Mexico LLCs may be either member-managed or manager-managed. If no management structure is specified in the Articles of Organization, the LLC is automatically treated as member-managed.

In a member-managed LLC, all owners participate in daily operations and decision-making. This structure is common for small businesses where members are actively involved.

In a manager-managed LLC, one or more managers—who may or may not be members—handle operational decisions. This structure is often chosen when some owners prefer to remain passive investors.

Your choice should reflect how you intend to operate and grow your business.

4. File Articles of Organization with the New Mexico Secretary of State

To officially form your LLC, you must file Articles of Organization through the New Mexico Secretary of State's online business portal. New Mexico requires online filing only—paper submissions are no longer accepted.

The Articles of Organization require information such as:

• LLC name
• Principal business address
• Registered agent and registered office address
• Business purpose
• Management structure
• Organizer details

After logging into your account, you'll complete the form, review your entries, and submit payment. Most filings are approved within 1–3 business days.

The filing fee is $50.

New Mexico Secretary of State Contact Information

Website: New Mexico Secretary of State – Business Services

Office Address:
Capitol Annex North
325 Don Gaspar, Suite 300
Santa Fe, NM 87501

Phone: 505-827-3600 (Option 1)

Email: Business.Services@state.nm.us

5. Create an Operating Agreement

Although New Mexico does not require an Operating Agreement, having one is strongly recommended—even for single-member LLCs.

An Operating Agreement outlines ownership percentages, management authority, voting rights, profit distribution, and procedures for resolving disputes. It also strengthens your LLC's liability protection and is often requested by banks and investors.

While templates are available online, having an attorney review your agreement can help prevent costly misunderstandings.

6. Obtain an Employer Identification Number (EIN)

An EIN is issued by the IRS and serves as your LLC's federal tax identification number. It is required if your LLC has multiple members, hires employees, or elects corporate taxation.

You can apply for an EIN online through the IRS website at no cost. The application must list a responsible party, who is an individual with authority over the business's finances.

7. Obtain Required Licenses and Permits

Licensing requirements vary depending on your business activities and location. While New Mexico does not issue a general business license, many professions require state-level or local permits.

Businesses selling goods or taxable services must register with the New Mexico Taxation and Revenue Department (TRD) to collect gross receipts tax, which functions similarly to sales tax.

Local cities and counties may also require zoning permits or operational licenses. Operating without required licenses can result in fines or penalties, so proper research is essential.

8. Understand Your New Mexico LLC Tax Obligations

By default, New Mexico LLCs are treated as pass-through entities for tax purposes. This means the LLC itself does not pay federal income tax; instead, profits and losses are reported on the owners' personal tax returns.

Single-member LLCs are taxed like sole proprietorships, while multi-member LLCs are taxed as partnerships unless a different election is made.

LLCs may elect to be taxed as a C-Corporation or S-Corporation if it provides tax advantages. In addition, New Mexico LLCs must comply with state tax requirements, including gross receipts tax where applicable.

Additional Ongoing Requirements

After forming your LLC, it's important to open a dedicated business bank account to keep personal and business finances separate. This separation helps preserve your liability protection.

You may also wish to apply for a business credit card to build business credit and manage startup expenses. Insurance coverage—such as general liability or professional liability insurance—helps protect your investment.

Unlike many states, New Mexico does not require annual LLC reports or renewal fees, which significantly reduces long-term compliance costs.

New Mexico LLC FAQs