Frequently asked questions about starting and running an LLC, or limited liability company.
A limited liability company (LLC for short) is a way to legally structure a business. It combines the limited liability of a corporation with the flexibility and lack of formalities provided by a partnership or sole proprietorship. Any business owner who seeks to limit his or her personal liability for business debts and lawsuits should consider forming an LLC.
In New Mexico your LLC's name must contain the words "Limited Liability Company" or "Limited Company," or one of the following abbreviations: "LLC," "LC," "L.L.C.," or "L.C." The word "Limited" may be abbreviated as "Ltd." and the word "Company" abbreviated as "Co."
Your LLC's name must be distinguishable from the names of other business entities already on file with the New Mexico Secretary of State. Names may be checked for availability on the Secretary of State's business name database.
You may reserve a name for 120 days by filing an application for Reservation of Limited Liability Company Name with the New Mexico Secretary of State. The application must be filed by mail. The filing fee is $20.
Every New Mexico LLC must have an agent for service of process in the state. This is an individual or business entity that agrees to accept legal papers on the LLC's behalf if it is sued. The registered agent may be a New Mexico resident or a foreign or domestic business entity authorized to do business in New Mexico. The LLC may not be its own registered agent. The registered agent must have a physical street address in New Mexico.
A New Mexico LLC is created by filing Articles of Organization with the New Mexico Secretary of State's office. The articles must include:
The articles must be filed online. The filing fee is $50.
An LLC operating agreement is not required in New Mexico, but is highly advisable. This is an internal document that establishes how your LLC will be run. It sets out the rights and responsibilities of the members and managers, including how the LLC will be managed. It can also help preserve your limited liability by showing that your LLC is truly a separate business entity. In the absence of an operating agreement, state LLC law will govern how your LLC operates. If an operating agreement is created, it need not be filed with the Articles of Organization.
If your LLC has more than one member, it must obtain its own IRS Employer Identification Number (EIN), even if it has no employees. If you form a one-member LLC, you must obtain an EIN for it only if it will have employees or you elect to have it taxed as a corporation instead of a sole proprietorship (disregarded entity). You may obtain an EIN by completing an online EIN application on the IRS website. There is no filing fee.
All of the paperwork and procedural steps to start a limited liability company can be done online using Nolo's Online LLC Formation service.