How to Set Up a New Mexico LLC
An LLC established in the state of New Mexico draws consideration as a separate legal entity from the members of the business. LLCs in New Mexico appear as a hybrid business, combining the flexibility of a partnership with the limited liability protection of a corporation. Members of a New Mexico LLC have personal asset protection against debts and obligations incurred while operating the company. New Mexico LLCs may form with a single owner, or with an unlimited number of members.
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Instructions
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Conduct a name availability check. A New Mexico LLC must have a different name than any other business entity registered with the New Mexico Public Regulation Commission. New Mexico law requires the business name to contain the word "limited liability company," or an abbreviated version. Furthermore, LLCs in New Mexico are prohibited from having the word "bank" in the business name. A name availability search can be conducted with the New Mexico Public Regulation Commission.
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File articles of organization with the New Mexico Public Regulation Commission Corporations Bureau. In New Mexico, articles of organization must contain the name and address of the LLC. Furthermore, New Mexico LLCs must provide the name and address of a registered agent in the articles of organization. A New Mexico registered agent must be an individual that is at least 18 years old or a business with a physical address in the state of New Mexico. A registered agent in New Mexico has the responsibility of accepting legal process and other legal documents on behalf of the LLC. According to the Limited Liability Company Center website, as of 2010, New Mexico LLCs must pay a $50 fee in order to file articles of organization.
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Write an operating agreement for the LLC. New Mexico law doesn't require LLCs to file a written operating agreement, but it's advisable to keep an operating agreement on file at the business location. An operating agreement includes information regarding member voting, distribution of company profits and losses, as well as the management structure of the company. In addition, the operating agreement can provide information regarding the acceptance and withdrawal of members. A written operating agreement helps establish rules and regulations for operating the business.
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Contact the Internal Revenue Service to obtain an employer identification number (EIN). An EIN provides the IRS with an easy way to identify the LLC. An EIN can be obtained free of charge on the IRS website or via phone, fax or mail inquiry. It may take up to four weeks before the IRS will issue an EIN if mailed via postal mail. Faxing results yields a four business day response, while applying for an EIN online or over the phone results allows the IRS to issue an EIN for immediate use.
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Apply for a business license and other permits necessary to operate the LLC. Most businesses in New Mexico will require at least a business license in order to conduct business in the state. The permits and licenses required to operate the business will depend on the business type. For example, an LLC involved in retail movie sales will have to obtain a seller's permit, a sales tax and use license as well as the proper zoning permits. A home-based LLC in New Mexico that provides consulting services to businesses may not require more than a business license to operate. Contact the city clerk's office in the New Mexico county where the business operates to ensure that the LLC has all necessary licenses and permits required by the local government.
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