How to Register a Business in New Mexico

by Jennifer Kiesewetter in Guide
trees under gray sky during golden hour

Source: Unsplash

TLDR

  • New Mexico is friendly to founders, startups, and entrepreneurs. Entrepreneurs in New Mexico have significant support from ecosystem builders like the New Mexico Small Business Development Center Network, Startup Savant, Native Women Entrepreneurs AZ, and Change Labs.
  • When you register your startup in New Mexico, you'll need to satisfy several legal requirements to register your business correctly. However, before registering your startup, it's a good idea to plan ahead, for example, researching the market and potential competitors, mapping out your financing, planning for operations and personnel, and creating a business plan. New Mexico's Secretary of State provides various resources to help you start a business, helping you identify what resources you'll need as you launch your startup.
  • Before you register your startup in New Mexico, in addition to creating a business plan, you must also determine your startup's legal ownership structure. Popular structures include sole proprietorships, general partnerships, limited liability companies (LLCs), and corporations.
  • When you're ready to register your startup, depending upon your chosen business structure, New Mexico requires you to choose a unique business name, differing from any other registered businesses in the state. In addition, you must follow New Mexico's business naming conventions, which help make your startup's name distinguishable. To confirm if your startup's name is distinguishable from other registered businesses, you can use New Mexico's business search tool.  
  • Depending upon your chosen business structure, you'll need to register with the New Mexico Secretary of State before commencing operations in the state. You may file your formation forms by US mail, in person at New Mexico's Secretary of State's office, or through New Mexico's online portal. Additionally, you'll need to file the appropriate filing fee along with your formation documents.
  • With online filing options, you can register your New Mexico startup in as little as a few hours. However, if you mail in your registration forms instead, you may have to wait a few days for your startup to be up and running officially.

Nicknamed the Land of Enchantment, New Mexico is known for numerous national parks, such as Carlsbad Caverns National Park and the White Sands National Park. New Mexico also has Pueblos in Taos and the International Balloon Fiesta in Albuquerque. And let's not forget three United Nations Educational, Scientific, and Cultural Organization (UNESCO) world heritage sites, including Chaco Culture National Historic Park, which celebrates native Pueblo culture for over 2,000 years.

New Mexico is also friendly to founders, startups, and entrepreneurs. Entrepreneurs in New Mexico have significant support from ecosystem builders like the New Mexico Small Business Development Center Network, Startup Savant, Native Women Entrepreneurs AZ, and Change Labs.

New Mexico is also small business-friendly, with over 158,000 small businesses, employing just over 343,000 people, according to the U.S. Small Business Association (SBA), making up 99.0 percent of all New Mexico businesses. Top small business industries include construction; health care and social assistance; professional, scientific, and technical services; retail trade; and accommodation and food services.  

As a startup founder, if you consider registering your business in New Mexico, this article will walk you through what you need to know.

How to Register a Business in New Mexico

When you register your startup in New Mexico, you'll need to satisfy several legal requirements to register your business correctly. However, before registering your startup, it's a good idea to plan ahead, for example, researching the market and potential competitors, mapping out your financing, planning for operations and personnel, and creating a business plan. New Mexico's Secretary of State provides various resources to help you start a business, helping you identify what resources you'll need as you launch your startup.

The creation of a business plan is critical to your startup's growth. Think of it as the foundation of the house you're building. In drafting your business plan, you'll want to consider marketing, advertising, sales, location, and ownership, to name a few categories. To help guide you, you can check in with the U.S. Small Business Administration, providing additional guidance for creating a business plan.

Once you've identified some of your business's operation basics, it is then time to register your startup. Below, we'll walk you through the steps necessary to register your business in New Mexico.

Determine Your Business's Entity Structure

Before you register your startup in New Mexico, in addition to creating a business plan, you must also determine your startup's legal ownership structure. Popular structures include sole proprietorships, general partnerships, limited liability companies (LLCs), and corporations.

Let's look at some structures more specifically. A sole proprietorship does not "produce a separate business entity. This means your business assets and liabilities are not separate from your personal assets and liabilities. You can be held personally liable for the debts and obligations of the business. Sole proprietors are still able to get a trade name. It can also be hard to raise money because you can't sell the stock, and banks are hesitant to lend to sole proprietorships."

On the other hand, a limited liability company, or LLC, "lets you take advantage of the benefits of both the corporation and partnership business structures. LLCs protect you from personal liability in most instances; your personal assets — like your vehicle, house, and savings accounts — won't be at risk in case your LLC faces bankruptcy or lawsuits. Profits and losses can get passed through to your personal income without facing corporate taxes. However, an LLC member is considered self-employed and must pay self-employment tax contributions towards Medicare and Social Security."

Your chosen business entity determines the next steps in registering your New Mexico startup. Read on to learn about the next steps.

Choose the Name of Your Startup

When you're ready to register your startup, depending upon your chosen business structure, New Mexico requires you to choose a unique business name, differing from any other registered businesses in the state. In addition, you must follow New Mexico's business naming conventions, which help make your startup's name distinguishable.

To confirm if your startup's name is distinguishable from other registered businesses, you can use New Mexico's business search tool.  

Remember, this is only a preliminary search for a similar business name. Once you file your startup's registration, another name availability search will be conducted when your application is processed.

Suppose you're not quite ready to register your startup, but you'd like to preserve your startup's name. In that case, you can file a name reservation application with New Mexico's Secretary of State's office. You may keep your business name reserved for 120 days, along with a $20 filing fee.

You may choose to use a fictitious name for sole proprietorships other than using their name. A fictitious name can also be used as a "doing business as," or DBA, for corporations, partnerships, or LLCs. 

Identify Your Registered Agent

Each registered entity must have a "registered agent." Any service of process of legal documents may be sent to the registered address on file with New Mexico's Secretary of State. The registered agent's address cannot be a P.O. Box, but instead, must be a street address where the service of legal papers may be received during regular business hours.

Submit Your Formation Forms

Depending upon your chosen business structure, you'll need to register with the New Mexico Secretary of State before commencing operations in the state. You may file your formation forms by US mail, in person at New Mexico's Secretary of State's office, or through New Mexico's online portal.

Additionally, you'll need to file the appropriate filing fee along with your formation documents. Paying the wrong amount can result in the return of your documents, further delaying your startup's formation.

New Mexico's Secretary of State provides all business registration forms for your startup. For example, for an LLC, you can use the sample forms provided on the site for your articles of organization, which also notify you of the required filing fee. In addition, you'll file articles of incorporation for corporations, and for limited partnerships, you'll file a partnership registration form. All forms can be filed online.

What to Do Next

After you submit your formation forms registering your startup with the state, you'll also need to obtain a federal employer identification number for banking and tax filings. Additionally, you'll need to check in with the State of New Mexico and your local city and county to see if there are any additional business registrations required, such as a business license.  

How Long Does It Take to Register a Business in New Mexico?

With online filing options, you can register your New Mexico startup in as little as a few hours. However, if you mail in your registration forms instead, you may have to wait a few days for your startup to be up and running officially.

Like any other task, preparation is vital. The more you prepare, the faster you'll complete your registration. By researching your business's services or products, determining if your startup name is unique, and choosing your ownership structure, you'll be better prepared to complete the necessary registration forms. 

How Much Does It Cost to Register a Business in New Mexico?

Depending upon your chosen entity for your startup, you will have filing fees due when registering your company. For example, if you register as a corporation, your filing fee is based upon the value of your authorized shares reflected in the Articles of Incorporation. Prices range from $100 to a maximum of $1,000.

A $50 filing fee for LLCs must accompany your Articles of Organization filing. For limited partnerships, a $75 filing fee must also accompany the filing of your partnership registration form.

You'll also need to file annual reports for your startup. You'll need to budget for these filing fees as well. After submitting your registration forms, you need to learn about any required state or local licenses, such as a business license.

Also, depending upon your entity, you may be liable for New Mexico's business taxes, such as withholding, sales tax, and corporate tax. To better understand your state tax obligations as a startup, you can check with the New Mexico Department of Taxation and Revenue, or you should consult with an accountant familiar with New Mexico tax laws.

How Do You Register as a Woman-Owned Business in New Mexico?

In New Mexico, if you are a woman-owned business, you have access to several certificate programs and resources, such as the New Mexico woman-owned certification program and the Office of Women's Business Ownership, part of the U.S. Small Business Administration.

In addition to the state certification, you can also explore national certifications, such as those offered by the Small Business Administration (SBA). For example, the SBA offers three types of certifications for women-owned businesses, including the Women's Business Enterprise (WBE), the women-owned small business (WOSB), and the Economically Disadvantaged Women-Owned Small Business (EDWOSB). To learn more about these certifications, visit the SBA's website.

The Benefits of Registering a Business in New Mexico

Here are some benefits of registering your startup in New Mexico:

The Limitations Associated with Registering a Business in New Mexico

Here are some limitations of registering your startup in New Mexico:

  • Dry weather at high elevations
  • Bad roads
  • Low literacy rates
  • High poverty rate

We Can Help!

At AbstractOps, we help early-stage founders streamline and automate regulatory and legal ops, HR, and finance so you can focus on what matters most—your business.

If you're looking for help registering your Utah startup, we can get your documentation ready, overall shepherding this process to ensure it's done right. Get in touch with us.

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Note: Our content is for general information purposes only. AbstractOps does not provide legal, accounting, or certified expert advice. Consult a lawyer, CPA, or other professional for such services.

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Visit our State Registration & Compliance Library to explore how to register a business in a different state.




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