New Mexico Limited Liability Partnerships are commonly used by lawyers, doctors, dentists, and other professionals to structure their business relationships.
And, while they do operate and benefit in similar ways to LLCs, there are differences, which we’ll discuss below.
That said, regardless of which entity you decide to use for your business, you can still use our other free business resources like how to open a US business bank account for non-resident entities and more.
Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.
Table of Contents
- New Mexico Limited Liability Partnership
- What Is the Difference Between an LLC and an LLP?
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
New Mexico Limited Liability Partnership
A Limited Liability Partnership is one of the many structures that individuals (or groups of individuals) can choose to register in New Mexico.
That said, the Limited Liability Partnership offers a few unique benefits compared to other Partnerships. For your reference, here are the other possible partnerships that can be registered in New Mexico.
New Mexico Partnership Options
- General Partnership (GP)
- Limited Partnership (LP)
- Limited Liability Partnership (LLP)
- Limited Liability Limited Partnership (LLLP)
We will only be focusing on the New Mexico Limited Liability Partnership in this article. That said, we may discuss the other New Mexico partnership options in a future article.
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LLP vs Other Partnerships
LLPs are unique because they offer liability protection to the general partners within the organization. In other words, if one of the partners is sued (e.g. for professional negligence) and that lawsuit does not involve the other partners in the organization, the liability from that suit would not carry over to the other general partners.
Tax Consideration of an LLP
Like an LLC or other partnership structures, a New Mexico Limited Liability Partnership is a pass-through entity. In other words, the income attributable to each partner is “passed through” to them and taxed at their own personal income level.
Reporting Requirements
Like entities that are registered elsewhere, a New Mexico LLP has to file an annual report each year. This is required for the entity to remain in good standing with the New Mexico Secretary of State.
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What Is the Difference Between an LLC and an LLP?
A Limited Liability Company generally provides business owners with more liability protection, as there are no restrictions on liability or liability requirements for a general partner. Additionally, LLCs can also benefit from more flexibility in terms of tax treatment. If you’re interested in forming an LLC, specifically a Wyoming or a Delaware LLC, you can access your free guide linked here to get started.
Frequently Asked Questions
Below are two of the most common questions that we receive from people looking to register a limited liability partnership in New Mexico. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How Much Does It Cost to Register a Limited Liability Partnership in New Mexico?
The cost to register a Limited Liability Partnership in New Mexico will ultimately depend on the registered agent that you choose to use. The reason for this is that many registered agents charge inflated fees that can cost business owners significantly more than the registration and annual maintenance fees charged by the state.
Is a Limited Liability Partnership Right For My Business?
To determine if a Limited Liability Partnership is right for your business, you should consider the level of liability that the partners will have. Additionally, you should consider whether your situation requires a pass-through entity or if you require a corporation. For these reasons, many business owners consider whether an LLC is better for their needs.
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