How to Start a Corporation in New Mexico
To start a New Mexico corporation, you must file Articles of Incorporation with the Secretary of State’s Business Services Division and pay a $100 minimum filing fee. While this filing creates your business, it’s really just the first step to launching your New Mexico corporation. The complete steps to incorporating in the Land of Enchantment are as follows:
- File New Mexico Articles of Incorporation
- Pay the New Mexico Business Services Division a minimum of $100
- Wait to receive your Certificate of Incorporation
- Get a federal tax ID (EIN) for the corporation
- Create New Mexico corporate bylaws
- Take these documents to the bank and get a New Mexico corporate bank account
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New Mexico Articles of Incorporation free download. When you're done filling out the form, submit it to your state.
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10 Day New Mexico Corporation For $325 Total
How to File New Mexico Articles of IncorporationTo form a New Mexico corporation, you file the Articles of Incorporation in the following steps:
What is the Cost of a New Mexico Corporation?
The filing fee is $100 for up to 100,000 shares. Have more than 100K shares? There’s a $1 fee for each additional 1,000 shares. The filing fee maxes out at $1,000.
Hire Northwest to form your New Mexico corporation and your total, out-the-door cost is $325. For $375 total, we’ll overnight everything to the Business Services Division, which will cut down on processing by a few days.
Note: Within 30 days of registering your business, you’ll also have to file an Initial Report online ($25).
How Much Does a Corporation in New Mexico Cost Each Year?
At least $50. This is the cost of the annual corporate franchise tax. Every other year, you’ll also shell out $25 to file your New Mexico Biennial Report.Get Started
What is a New Mexico Initial Report?
This is a report you must file within 30 days of forming your New Mexico corporation. This report includes ownership and contact information, as well as the date of your next annual meeting. The report and $25 fee are paid online through the state’s Corporations and Business Services portal.
To complete your filing, you’ll need your corporation’s state taxpayer ID number, which you can obtain by registering with New Mexico’s Taxation and Revenue Department.
What is a New Mexico Biennial Report?
Your New Mexico Biennial Report is a form you file every other year in order to confirm or update the same information you provided in your Initial Report. Like the Initial Report, the Biennial Report has a $25 filing fee. While it’s nice that you don’t have to file every year, the large gap between due dates makes it all too easy to forget about this report—and there’s a $200 penalty if you file late. If you fail to file for six months or more, the state can dissolve your corporation. Yikes.
At Northwest, we can help you avoid these late fees and penalties. When you hire us as your registered agent, we’ll send you report reminders to help you stay in compliance. Or, for $100 plus state fees, we’ll take this task off your hands and file your Biennial Report for you.Get Started
What are the Taxes for a New Mexico Corporation?
The New Mexico corporate net income tax rates are:
4.8%: under $500,000
5.9%: over $500,000
New Mexico corporations (including S corporations) are also subject to the state’s franchise tax, which is a flat $50 each year.
The state sales tax rate is 5.125%, but local areas can add on additional sales taxes, making the average total rate just over 7%. To get an idea of what customers are paying at the counter, below are the total sales tax rates for New Mexico’s 5 largest cities:
Las Cruces: 8.3125%
Rio Rancho: 7.4375%
Santa Fe: 8.4375%
Is a Registered Agent Required for a New Mexico Corporation?
Absolutely. You’re required appoint and maintain a New Mexico registered agent. Your agent can be an individual state resident or a corporation. Your corporation can’t be its own agent, but you can appoint a person in your corporation, like a director or officer. Unfortunately, it’s not a job most people want to volunteer for—agents are supposed to be available at your corporation’s registered office during regular business hours. No one particularly wants to be stuck in the office all the time.
Instead, many New Mexico corporations hire a registered agent service like Northwest. When you hire Northwest, our registered office address is listed in your Articles, and we’re there to scan and send you any legal notifications the same day. You can stay on top of your business wherever you are—whether that’s in the office or out hiking the Sandias.Get Started
New Mexico Corporation Versus New Mexico LLC:
New Mexico LLCs tend to be more popular than New Mexico corporations, and it’s easy to see why. First, a corporation costs more than an LLC. The state’s base filing fee to form a corporation is twice as high: $100 vs $50. Corporations also have to pay Biennial Report fees ($25) and annual franchise taxes ($50). New Mexico corporations also require much more personal information about people in the corporation, such as directors and officers.
This doesn’t mean everyone should form an LLC in New Mexico. Depending on your business needs and goals, a corporation could be more advantageous. Corporations can become publicly-traded, so if you have Wall Street dreams, you’ll want a corporation. If you need the flexibility of stocks (for raising capital or attracting investors), you’ll want a corporation. Corporations have also been around much longer than LLCs. Their long legal history means decades of court precedents that can be used as guidance for complex business decisions.
LLCs, on the other hand, cost a bit less, are much more private, and tend to be simpler to operate. If an LLC sounds like a better fit, here’s information on starting an LLC in New Mexico.
Do I Need a Federal Tax ID for a New Mexico Corporation?
Yes, corporations are required to have to a federal tax ID (also known as an EIN or FEIN). This ID is used to identify your business on federal tax filings. You may also need your EIN to open a corporate bank account or complete applications for licenses or permits.
You can fill out an application directly with the IRS for no fee. Or, pass the paperwork to us and hire Northwest to get your EIN for you. Just add on EIN service during checkout when you sign up for our New Mexico incorporation service.
Do I Need a State Tax ID for a New Mexico Corporation?
Yes, in addition to a federal tax ID, corporations also need to obtain a state taxpayer ID before filing their Initial Report. To get an ID, register with New Mexico’s Taxation and Revenue Department.
Does a New Mexico Corporation Need a Business License?
The state itself doesn’t have a general business license. However, cities and counties often have their own licensing requirements. For instance, the two largest New Mexico counties, Bernalillo County and Doña Ana County, both require businesses to obtain an annual business license before operating within the county.
New Mexico Articles of Incorporation Requirements
Your name must include “Corporation,” “Company,” “Incorporated,” “Limited” or an abbreviation of one of these words. Tip: Most corporations keep it short and sweet with “Corp” or “Inc.”
Skip this section if you want your corporation to continue indefinitely. If you’d rather put a self-destruct timer on your corporation, enter how long you want it to exist. Tip: Most corporations skip this section.
Don’t worry, this isn’t as existential as it sounds. Your corporation’s purpose is your primary business activity. New Mexico requires a specific purpose, but it only needs to be a few words, such as “real estate” or “art restoration.”
List the number of shares you wish to create. If you have classes or series of shares, you’ll need to attach a schedule explaining their rights and limitations.
Your agent can be a corporation (but not your own) or an individual New Mexico resident (such as yourself). Your agent must also sign and submit a Statement of Acceptance of Appointment, which is included in the Articles of Incorporation packet. Tip: Hire Northwest as your registered agent and reap the benefits: same-day document scans, compliance tools, years of experience, and dedication to our clients.
This New Mexico street address is where your agent will be available to accept legal notifications on behalf of your corporation. Tip: When you hire Northwest, our New Mexico address will go here.
List the names and addresses of your initial directors. You must list at least one.
New Mexico Incorporator
Your incorporator is the person who signs your Articles of Incorporation. You must have at least one incorporator, but it doesn’t have to be a director, officer, or anyone in your corporation—just someone you authorize to submit your Articles. Incorporators must include their names and addresses. Tip: We’ll be your incorporator when you hire Northwest to form your New Mexico corporation.