Incorporate In New Mexico

Before it became a US territory New Mexico was part of the newly formed Mexico nation.

So it should not be surprising that the state has the highest percentage of Latinos in the country. New Mexico’s economy is mainly based on tourism, oil & gas production, and federal government spending.

Benefits of incorporating in New Mexico:

Protection of personal assets

When incorporating in New Mexico, foreign entrepreneurs should feel confident knowing that their personal assets are protected. Corporations and limited liability companies separate the assets and liabilities of companies from the personal assets of the business owner.

Ability to open bank account

Forming a company is the first step for a non US resident to open a bank account. A US bank account gives businesses access to a debit card, and the potential to open a merchant service account. Internet commerce is made much easier with a US bank account because companies like PayPal, Amazon and EBay considered you more qualified as a vendor.

Enhanced credibility

Whether starting a new business or incorporating an existing one, incorporation makes a business appear more credible to potential customers, suppliers and investors. You also have the security of operating under US law.

Your corporate name can boost your brand

New Mexico requires that C-corps and LLCs not have a name that is the same or could be confused with a business already in existence. To make sure your business name is eligible Inc. Plan can help you choose a distinctive C corp or LLC name. A unique corporate name enhances your company’s reputation and also helps protect the identity of your brand.

Tax flexibility and benefits

The type of business entity you choose determines the nature of the taxes your company will pay. C corps are subject to corporate tax based on the business income LLCs are subject to taxes based on its members’ personal income. C-corps and LLCs are both required to pay a New Mexico franchise tax.

Residency Requirements

New Mexico does not have any residency requirements. Owners and directors do not need to live in state to legally operate a New Mexico company. Before your firm is legally eligible to operate make sure you possess all the required business licenses, permits, and tax registrations. Inc. Plan can help you stay in compliance with state law.

Other incorporating requirements

New Mexico C corps and LLCs are required to have at least one director or member. The law requires that the names and addresses of the directors appear in the initial corporate filing for C-Corps. LLCs are not required to disclose member details. New Mexico requires businesses to obtain a state identification tax before conducting business in state.

Requirements for forming an LLC in New Mexico:

When forming a Limited Liability Company certain steps must be taken to keep the business in compliance on an ongoing basis.

Name requirements for LLCs

LLCs must contain the terms “Limited Liability Company,” “Limited Company,” or the abbreviations “Ltd.,” “Co.,” “LC,” “LLC” and “L.L.C.” Limited liability companies cannot use names containing the terms ”Bank,” “Insurance,” “Trust,” “Olympic” or “Little League”.

LLC filing requirements

Entrepreneurs looking to form LLCs in New Mexico must file articles of organization with the state. The state does not require LLCs to file an initial or annual report.

Required information for the Article of Organization

The Articles of Organization must contain the name and address of a registered agent who resides in New Mexico and who is available to manage legal and tax business documentation. For more help with the initial corporate filing or with finding qualified registered agent services feel free to contact Inc. Plan (USA).

LLC taxes and fees

New Mexico LLCs are taxed based on its members’ adjusted gross income. LLCs can choose to be taxed either as partnerships or as C Corporations for state tax purposes. LLCs taxed based on the income of individual members will be subject to a franchise tax. The franchise tax is due by the 15th day of the third month of the year. The franchise tax fee is $50.

Requirements for forming a C corporation in New Mexico:

Each of the 50 American states has its requirements for incorporating. The essential requirements for C corporations established in New Mexico are as follow:

Name requirements for C corporations

New Mexico allows organization names that include the terms “Company,” “Corporation,” “Incorporated” and “Limited,” along with their abbreviations. Corporations are not allowed to use names containing the words “Little League,” “Bank,” “Trust,” “Insurance” or “Olympic”.

Filing requirements in New Mexico

Entrepreneurs looking to form companies in New Mexico must file articles of incorporation with the state. Businesses must submit a biennial report due on the 15th day of the third month of the year.

Required information for the Article of Incorporation

New Mexico requires that articles of incorporation list the company’s authorized shares and their assigned par value. The articles of incorporation must include the name and address of a registered agent with a physical New Mexico address. Any increase in the number of shares may affect the initial filing fees. Inc. Plan (USA) can help you with the initial corporate filing and also with qualified registered agent service.

Taxes and fees requirements

New Mexico corporations are subjected to corporate income tax which is calculated based on the company’s net revenue. The minimum rate for corporate income tax is 4.8%. Additionally, New Mexico-based C-corps must pay an annual franchise tax due by the 15th day of the third month of the year.

If you are ready to get started you can fill out our application or call 1-302-428-1200 for a Free 30 Minute Live Consultation.



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