If you’re looking to understand New Mexico LLC advantages, you’re probably in the process of setting up a new LLC in the United States.
And, if you’re considering New Mexico, you’re probably looking for some level of privacy in addition to the favorable LLC taxes for non-residents that many US LLCs can offer.
Well, in this article we’re going to share the advantages and disadvantages of a New Mexico LLC and we’ll also share a few of the alternative LLC options you may want to consider as well.
Feel free to jump ahead to the areas most relevant to you by using the table of contents below.
Table of Contents
- New Mexico LLC Advantages
- New Mexico LLC Disadvantages
- Frequently Asked Questions
- Ready to Explore Your Options?
New Mexico LLC Advantages
New Mexico is one of a few states that do not require the member(s) or manager(s) of an LLC to be listed publicly in a state registry.
Another popular option that offers similar benefits is the state of Wyoming. In fact, an anonymous LLC in Wyoming may be a more favorable option if you need to open bank accounts as bankers tend to be more familiar with this option.
That said, New Mexico is popular as well, in particular as a low-cost option with enhanced privacy compared to many other states. Let’s take a look at the specific benefits that business owners can unlock when registering here.
New Mexico LLC Benefits
- Member(s) and manager(s) are not disclosed publicly
- Annual report filing is not required
- No restrictions on citizenship or residency
- Lower cost than most US LLC options
Of course, there are also disadvantages to registering an LLC in New Mexico as well, which we’ll cover below.
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New Mexico LLC Disadvantages
It’s important to note that there are limited disadvantages to a New Mexico LLC when compared to other popular options like Delaware and Florida. However, the following are worth noting and should be considered before deciding if New Mexico is the right state for your new entity.
- Registered agent required (for non-residents)
- Franchise tax of $50 (if setup as a corp for taxes)
- Sales tax must be charged on local sales
- Service provider fees vary and can be very high
Frequently Asked Questions
Below are three of the most common questions that we receive from people looking to set up new LLCs in New Mexico. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Can Non-Residents Register an LLC in New Mexico?
Yes, non-residents can register an LLC in New Mexico. In fact, New Mexico is a popular choice for registering non-resident US LLCs. This popularity is due to low-cost, enhanced privacy, and favorable non-resident US LLC taxes.
What Benefits Can I Unlock From Registering My Business as an LLC in New Mexico?
The benefits that you can unlock from registering a business as an LLC in New Mexico include low-cost maintenance, limited reporting requirements, enhanced privacy, enhanced asset protection, and favorable taxes for non-resident entities.
Does an LLC Pay Taxes in New Mexico?
Whether an LLC pays taxes in New Mexico depends on how the LLC has been set up for tax purposes. For example, LLCs that are set up as a corporation for taxes must $50 per year in franchise tax. Additionally, if a New Mexico LLC generates local income in New Mexico, it will be liable for local sales tax.
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