LLCs are governed by New Mexico Code – Chapter 53, Article 19 Limited Liability Companies.

New Mexico LLCs

The New Mexico LLC is one of our favorite LLCs. A New Mexico LLC has great asset protection laws that govern it, protecting the LLC from the members.

The details of a New Mexico LLC for asset protection:

  • New Mexico only charges $50 to form a New Mexico LLC. Very reasonable.
  • New Mexico currently does not have annual reports for New Mexico LLCs.
  • New Mexico does not require very much information on formations. New Mexico LLCs are under the New Mexico Code, Chapter 53, Article 19, Limited Liability Companies. It states that you must have a business name with an LLC ending, an organizer (Which doesn’t have to be you), New Mexico Registered Agent, a principal office, the duration of the LLC. That’s it!

There are some things to be concerned about when you are setting up a New Mexico LLC with privacy as a concern. We encourage you to read through our entire page if you’re thinking about an asset protection LLC in New Mexico.

New Mexico LLC Advantages

New Mexico is one of the few states where you can maintain long-term privacy after forming an LLC. If LLC privacy is a big concern, you’ll need to hire a New Mexico registered agent.

Why do I need to hire a registered agent? 
What we mean when we say privacy is that none of your personal information will be published on state records. That way no data scrapers can scrape your data and sell it to solicitors. Random people can’t search your name and find out what assets you own. With a private entity, your personal information stays private. When you form your New Mexico LLC, it’s easy to set up a private New Mexico LLC initially, but maintaining this privacy forces you to trust your New Mexico Registered Agent. Your privacy relies on the legitimacy of your New Mexico Registered Agent. If you have to make an amendment to your LLC, you will lose its private New Mexico LLC status because a member or manager will have to sign that form. If you change your registered agent, you will lose your private New Mexico LLC status. If you need to update your principle address, you will need to make an amendment, forcing you to forfeit your privacy. There are more requirements than you might think when listing your principal address as ours, and this responsibility should not be trusted to just any registered agent website. Any piece of mail sent to your New Mexico Registered Agent is legal proof that you’ve been notified—whether you get it or not. We take our responsibility seriously, and if you value the legitimacy of your New Mexico LLC, you will too.

When we form New Mexico LLCs, we include:

  • Custom drafted articles of organization specific to creating a New Mexico LLC
  • We sign as the organizer
  • 1 year registered agent service from us, not a random name listed as your agent
  • Initial resolutions
  • A New Mexico LLC operating agreement customized for asset protection
  • The $50 New Mexico State filing fees
  • We only charge $100 for our services. Your total package is $275 and we get New Mexico LLCs filed within 3 months. If you need it expedited, we can walk the filing in for an extra $150 expedite fee, and have it done within 5 days for $150 or within 2 days for an additional $350 — just select the expedited processing option on our New Mexico LLC signup form.

Your total package price is $275 for 3 month processing, or $425 for 5 day processing.

Start Your New Mexico LLC Today!

One of the biggest reasons to use our services is for the filing requirements should you ever need to change anything with your New Mexico LLC. To preserve the long-term privacy of your New Mexico LLC, you won’t want to have to change registered agents or file any amendments. As our client, your registered agent price will never go up and we’ll never disappear. You can see our NM address on any page on our site, our phone number, and we’re always available for your questions. With us as your New Mexico LLC agent, you should never need to amend anything.

Here’s a copy of the New Mexico LLC statutes showing you that you WILL have to sign something if you change addresses, and then your name will be on the permanent records:

New Mexico Limited Liability statute, Chapter 53, Article 19 NMSA 1978

How do I fund the New Mexico LLC with assets?

Typically, you would fund the LLC with something when you form it. Assets, property, cash, etc… It would be best if everything is titled in the New Mexico LLC name as well. There is specific code under Section 53-19-29 of the New Mexico Statutes that states, “Property may be owned by a limited liability company, even though the property is not acquired or held in its name.”

This can create some useful solutions for people that live in States unfriendly to business to keep assets titled in their personal name to keep their NM LLC out of the State. Keep in mind, that this is by far, not the best situation. If you’re looking for privacy, having items titled in your name doesn’t do that. You would have to have a specific agreement between yourself and the NM LLC to keep things titled in your personal name and owned by the LLC. That whole thing doesn’t make much sense, though, and you’ll have a lot tougher time explaining the validity of that in court. It is always best to either fund the LLC now with your assets or cash. And then purchase any future assets with the LLC money. If you need to get money into the LLC, you can always personally make an additional contribution at any time.

If you’re trying to get cash into the New Mexico LLC, you fund it by the member(s) putting money into the company in exchange for a membership interest. If you don’t have the business checking account set up yet to physically put the money in a different account, simply making written note of this on the operating agreement is legally binding you to this agreement. Eventually you will need to get the money into a separate checking account.

If you have actual physical assets that are titled and deeded, you’ll have to go through the various processes to get those assets recorded under the new New Mexico LLC name.

If you have assets that aren’t titled or recorded somewhere, you can simply make note of that and assign a value of those dollars in your initial contributions to the LLC. You can add to the assets of the New Mexico LLC at any time. To maintain privacy and asset protection, it is important to maintain strict separation of personal assets and business assets. Having your New Mexico LLC own your home and the belongings inside it is fine, but you must actually rent or lease these things from the New Mexico LLC. This can be as simple as a once a year payment. But there truly needs to be money exchanged, and do not spend money out of a New Mexico LLC “Business” account on truly personal needs. Intermingling funds and resources is what causes corporate veils to be pierced.

Do I need an EIN for my New Mexico LLC?

That depends. If you want to just hold some assets in this company, you won’t need one unless you make profits on them. If you make money with the New Mexico LLC, you’ll have to get a tax ID number. Having a tax id number with the IRS is not really losing your privacy. No one gets info from the IRS unless they steal it.

We can get federal tax id numbers for you for an additional $50. You can add that in the special services section at the bottom of the sign up form. We can establish the federal tax id number for you within days of getting the filed New Mexico LLC papers back from the State.

There’s no real escaping the federal government, and we don’t recommend any type of “strategic” or “creative” planning to avoid taxes.

New Mexico Asset Protection Services

Our goal when we form New Mexico LLCs for privacy-minded client is to form the entity that you can put your assets in and keep it there. Wyoming has a few additional benefits that a lot of people want, so the most complete package we provide is forming a New Mexico LLC that you use publicly, but have it be owned by a Wyoming LLC.

What the Wyoming LLC has that New Mexico does not, is that the Wyoming LLC laws that SPECIFICALLY say the ONLY remedy a judgment creditor has is to get a judgment against a distribution of money or assets that would have gone to a membership interest. There is no provision for a Wyoming Court to order the transfer of a membership interest. This keeps the personal individual (Member of the Wyoming LLC) in complete control of the Wyoming LLC and owning the Wyoming LLC. As long as the member doesn’t take distributions personally, the member’s creditors won’t get paid.

(NOTE: We are not legal or tax professionals and nothing on this website should be taken as legal advice. It’s merely opinion and personal analysis.)

We like one of 4 asset protection setups:

  1. If you’re looking for privacy:

    New Mexico’s asset protection laws are great, and better than most. Even with a personal judgment, it will be hard for someone to affect and disrupt your NM LLC. If you’re not as worried about getting into personal bankruptcy or judgments, this will be just fine.

  2. If you’re worried about divorce or other personally messy situations:

    You set up a New Mexico LLC and use for things you want to keep private. You bill and run your money through a Wyoming LLC that has no corporate or personal income tax, and provides the best control of your membership interest. You also have the Wyoming LLC own 100% of the New Mexico LLC or your 100% percent of your membership interest.

  3. If you’re in a tax heavy state:

    You’re going to need a business presence in your home state. You establish a separate company in your home state (which we can do for you,) but your home state leases and rents the assets from your holding company in WY, NM, or WY and NM. Getting money from the home state into your holding company. The WY LLC has privacy benefits as well, but there are strict rules about member/manager info in Wyoming compared to New Mexico. You do not have to list the member/manager info on the public docs or annual reports in Wyoming, but the state does have to know them, or the registered agent be able to produce them to the state at any time.

  4. If you’re not concerned with privacy:

    We can just establish a Wyoming LLC for you. The Wyoming LLC has a $100 filing fee, BUT has annual reports due each year for $52. We don’t have to list the members and managers on the articles, AND you don’t have to list them on the annual reports. The state DOES have an easier time getting us to produce that info if requested than New Mexico does. AND Wyoming strictly regulates registered agents and makes sure we maintain this info so that we can quickly produce it if ordered by the state. Wyoming can’t just ask for it without a reason. The state has to actually have a reason to ask us for the contact details of a Wyoming LLC.

Order Your Asset Protection Service 

Does my LLC have to pay taxes to New Mexico?

If you do not derive money from New Mexico and are not a New Mexico resident, you won’t have nexus in New Mexico and owe New Mexico income tax. (Disclaimer!! We’re not tax or legal professionals and this should be taken generally and not specific to your situation.)

New Mexico does have a personal income tax of 4.9% on net taxable income over $12,000. But this is only if you lived in New Mexico. You’ll pay local income tax to wherever you live. Not New Mexico. Establishing a holding company in New Mexico does not create nexus just for forming a company. You or your company would actually have to live or make money there to pay tax to NM.

Article 2, Section 7-2-1 of the general income tax provisions discusses who pays income tax in New Mexico. The general link to all the New Mexico taxation laws is here: New Mexico Statutes.

How do I know it’s my LLC if my name isn’t on the articles?

When we form your New Mexico LLC, we custom draft the New Mexico LLC articles of organization. We then include the initial resolutions showing a chain of signing authority to you, the members or managers. We also include a New Mexico LLC operating agreement where you document all members and managers, as well as the contributions and membership interest percentages of each member.

What if I get a personal judgment against me as a member?

One of the benefits of the New Mexico LLC is the asset protection it allows the LLC from the members and managers as well as the preservation of assets inside the LLC, to protect the LLC from the members and managers personal problems.

The standard LLC operating agreement and articles of organization will not protect the LLC from its members to the fullest extent available under the New Mexico LLC law. Our custom drafted New Mexico LLC articles of organization and New Mexico LLC operating agreement are specifically drafted to protect you as much as possible within the law.

If you get a judgment against you personally and you own a membership interest in a New Mexico LLC, the creditor will try to compel the Court to award it your membership interests.

Section 53-19-32 of the New Mexico Statutes states a few things of interest:

  • A membership interest is assignable.
  • A creditor that wins a Court judgment on a member of the New Mexico LLC and the Court approves an assignment of that member’s interest does not automatically make the creditor a member.
  • An assignment entitles the assignee only to the distributions that may have come to that member’s membership interests.
  • A lien, security interest, or other encumbrance against a member is not an assignment! This means that just because the member may personally have all kinds of judgments against the member, a Court would have to specifically award the members creditors an assignment of membership interests.

Section 53-19-33 discusses the rights of an assignee to become a member:

  • The Creditor that wins an assignment of member interests from a Court may not become a member unless all members unanimously consent
  • There are provisions allowing the assignee to be liable for any agreements a member has to continually fund the LLC. This may be a bargaining point, because the member is not required to turn over membership in the LLC. If you are bound to continually fund your New Mexico LLC every year with money, the creditor may not want to take over the member interests. The downside of this would be that you would have it in writing that you would fund the New Mexico LLC according to your agreement, creating more of a set of rules for you to keep up with.

Section 53-19-35 discusses the rights of a judgment creditor of a member:

  • The court may charge the interest of the member with payment of the amount of the judgment, with interest. It limits the rights The judgment creditor’s only rights are the same as an assignee of the member’s interest.

Basically, you’re pretty well covered. The only LLC with better Statutes is Wyoming. The thing that is missing from New Mexico law is hammering down a few more specific details. The thing that is great about Wyoming LLC law is that it specifically states that the “ONLY” remedy of a creditor is to get a Court to award a judgment against the member’s distributions. New Mexico does not specifically state this, so some could argue that someday a Court could interpret these laws differently and pierce the corporate veil in an extreme fraudulent case. In written laws, the more specific they are, the less room for random interpretations there are. Overall, the New Mexico LLC is a little cheaper on an annual basis, and a little more private than the Wyoming LLC, and has REALLY good asset protection laws that govern it.

Do I have to keep my business records with you?

You don’t unless you want to maintain long-term privacy.

To remain private, you must list our address on the public documents as your “Principal place of business.” New Mexico requires you to keep your business records at your principal place of business. We obviously know that this address won’t be where your actual business is located and both of our companies don’t want all your mail to come to our address (which is all fine). There’s no real definition of what a “Principal place of business” means, so you can interpret that how you see fit.

When you hire a random website promoting New Mexico LLCs, you’ll be entrusting that company with a lot of personal information. You are technically required to store all the items listed below. We store these items electronically for you in your online account, AND we have specific language written in your New Mexico LLC operating agreement to make this requirement less burdensome on you. Choosing who will establish your New Mexico LLC should not be taken lightly. Think about it. You are essentially marrying yourself to the registered agent to maintain your private New Mexico LLC status.

How much does an NM LLC cost each year?

LLCs do NOT have to file NM biennial reports with the state.

What are the taxes for an LLC in New Mexico?

There is a minimum franchise tax due of $50.

The New Mexico personal net income tax rates are:

$0-5,500 1.7%
$5,500-11,000 3.2%
$11,000-16,000 4.7%
$16,000 + 4.9%

The average New Mexico sales tax rate is 6.4%. The state has a 5% tax, but the average local tax is 1.4% making a total of 6.4%.

Additional New Mexico LLC Resources:

Free LLC Forms:

Want to compare entities? See our New Mexico Corporation page.

Order a New Mexico LLC