LLC Annual Report and Tax Filing Requirements in New Mexico

Forming a New Mexico limited liability company (LLC) is the first step to running your LLC. Apart from the initial registration requirements, you'll also be responsible for ongoing obligations like taxes.

No New Mexico LLC Annual Report

Unlike most other states, New Mexico doesn't require LLCs to file annual reports.

State Business Taxes in New Mexico

All New Mexico LLCs are required to register with the New Mexico Taxation and Revenue Department (TRD) and obtain a business tax identification number. You can register online through Taxpayer Access Point (TAP) or by mail using Form ACD-31015 Business Tax Registration.

The state taxes for businesses are a little complicated in New Mexico. If you have questions about which taxes to pay and report, you should talk to a New Mexico business or tax attorney. They can help you register for taxes and figure out your filing and payment obligations.

Must file pass-through entity tax return. An LLC is treated as a pass-through tax entity unless the company elects to be taxed as a corporation. So, the LLC doesn't pay taxes but the LLC's owners (members) pay and report taxes on their share of the income on their individual returns. New Mexico requires pass-through entities to file an informational income tax return with the TRD. The return is due by the due date of your federal return for your tax year. If one of the LLC owners is not a New Mexico resident, you'll also need to deduct and withhold that owner's share of the income using Form RPD-41367.

Electing corporate status. In some cases, the owners of an LLC choose to have their business treated like a corporation for tax purposes. New Mexico, like almost every other state, has a corporate income tax. The rate varies based on the business's net income. In addition, New Mexico assesses a corporate franchise tax (typically $50 per year). If your LLC is taxed as a corporation it'll also be subject to these corporate taxes. Use Form CIT-1, Corporate Income and Franchise Tax Return to pay both taxes to the TRD. For more guidance, check the TRD webpage on corporate taxes.

New Mexico Employer Taxes

Hiring employees means taking on responsibilities as an employer. One of these responsibilities is paying employer taxes to the federal and state governments. New Mexico, like other states, requires employers to pay taxes.

Withholding employee wages. If you withhold employee wages for federal income tax, then you'll need to withhold employee wages for New Mexico state income tax. On a periodic basis, file form TRD-41414, Wage Withholding Tax Return or form TRD-41409, Non-Wage Withholding Tax Return. You also need to file an annual withholding statement for every employee. You can file these forms online using the TAP system. (You can find detailed instructions on the wage withholding tax section of the TRD website.)

Unemployment insurance (UI) tax. Register with the New Mexico Department of Workforce Solutions (NMDWS) using the UI tax self-service system. After you register your business, you'll receive an employer account number, user ID, and password. Use this information to activate your account. On a quarterly basis, report on wages and pay UI taxes to NWDWS. (Check the NMDWS website for more information.)

New Mexico Gross Receipts Tax

New Mexico doesn't have a sales tax. Instead, the state has a gross receipts tax. Typically, a business's gross receipts tax is paid by the consumer and is tacked on to a product's or service's sales price (like a sales tax would be). The tax rate varies by location and combines the rates of the state, county, and municipality.

You can pay and report sales tax on Form TRD-41413 or file online using TAP.

The TDR has helpful information and resources on its gross receipts tax webpage.

LLC Registration in Other States

If you're going to conduct business outside of New Mexico, you might need to register in the states where you'll have your business activities. You should check each state's rules for registering out-of-state businesses. If a state considers your business activities as exempt, then you don't have to register your business in that state. But usually, if you have a location (such as an office or warehouse) or employees or representatives in a state, you'll need to register. In general, the registration process is similar to forming an LLC in your home state.

To find out registration requirements for other states, see our state guide to qualifying to do business outside your state.