New Mexico is called the “Land of Enchantment”, it is the 36th most populous state in USA and it has a diversified economy which offers a wide range of business opportunities for locals and foreigners. We have prepared a general guide to company incorporation which can help foreign investors establish their operations in New Mexico. Our company formation agents in USA are here to support entrepreneurs through the main stages of a company registration and can offer in-depth information at any time.

How to start an LLC in New Mexico

Knowing the proper business structure before commencing any activities can help the business person choose in accordance with the future activities. A limited liability company in New Mexico may represent the suitable business form in any field of interest, considering that it is the most popular structure and has an easy incorporation. The registration starts with the preparation of documents and particularly the Articles of Association which must contain information about the owners, their nationality, the future activities, the business address, the liabilities. Likewise, when opening an LLC in New Mexico, one must appoint the registered agent who must be a resident of the state, name the board of directors and consider signing an operating agreement.

Starting a company in USA and particularly in New Mexico attracts foreign investors who want to enter the American market and generate profits. We mention that the company registration in this state starts with the requirements imposed by the New Mexico Secretary of State.

Create an operating agreement for your LLC

Even though it is not mandatory, an operating agreement is recommended at the time of company incorporation. This is a legal document which comprises information about the owners, the invested capital, their voting rights, their liabilities. Also, the same document offers information about the dissolution of a company in New Mexico. If you want to open a company in USA, including New Mexico, we suggest you address your inquiries to our team of specialists in company incorporation in USA.

Register for EIN in New Mexico

Each company in New Mexico enters the market only if the Employer Identification Number is obtained in the first place. This is the federal tax ID issued by IRS (Internal Revenue Service) and proves that the company is registered for tax purposes. Applying for EIN in New Mexico may start with the official website of the tax authority, but for avoiding any misunderstandings, our company formation representatives in USA can offer complete support.

Taxes in New Mexico

The sales tax in New Mexico is set at 5.1% and besides that, the municipalities can impose their own city taxes which do not exceed an 8.9% rate. Moreover, one must consider the lodging tax and the rental tax which are imposed for certain goods and services in New Mexico. It is good to know that the government in New Mexico offers several tax exemptions and tax credits for foreigners who operate in this state or intend to do business here.

Other company formation requirements in New Mexico

Besides the above-mentioned stages in a company incorporation in New Mexico, foreign investors should consider other important requirements linked to opening a business in USA, such as:

• open a business bank account;
• register for social security taxes;
• register for New Mexico Gross Receipts Tax if you intend to sell taxable goods and services;
• obtain the necessary business license;
• hire an accounting firm;
• obtain the Certificate of Good Standing.

The economy of New Mexico

The diversified economy helped New Mexico develop in a wide range of sectors like mining, oil extraction, tourism, IT and engineering. The state of New Mexico is placed in the fourth position among American states which produce natural gas. The capital of New Mexico is Santa Fe, an important business center with major companies that developed their operations in a successful manner. Albuquerque, Las Cruces, Farmington, Taos, Hobbs, and Clovis are other significant cities of New Mexico where foreigners can set up their activities in different fields.

Starting a business in USA and especially in New Mexico is subject to particular taxes, like the corporate income tax and the franchise tax, which applies to C or S corporations. A series of marginal tax rates represent the corporate income tax in New Mexico imposed for companies with establishments in this state. Our specialists in company formation in USA can offer information about the taxes you need to pay in USA if you decide for business and they can provide essential support at the time of company registration in USA.

What is the sales tax rate in New Mexico?

The standard sales tax in New Mexico is set at a rate of 5.125% for goods and services sold in this state. New Mexico municipalities can collect their own sales tax named the city sales tax which cannot exceed 8.93%.

What is the corporate income tax rate in New Mexico?

The corporate income tax in New Mexico has suffered a series of changes in recent years and the following table shows how companies are levied with this tax in 2018:

Taxable Income Tax Rate
Between 0$ and $500,000: 4.8%
For more than $500,000: 5.9% and $24,000

Paying the tax on the company’s gross receipts instead of income means that firms must own real estate properties in New Mexico, develop only sale activities and have an annual gross sales in New Mexico of no more than $100,000. Companies meeting these requirements are subject to the alternative tax of 0.75% of annual gross receipts from New Mexico.

We invite you to talk to our company formation agents in USA and find out more about the taxes you need to pay in New Mexico. Moreover, you may read the general guide to company incorporation in New Mexico directed to foreign entrepreneurs willing to open a company in USA and particularly in this state.

What is the franchise tax in New Mexico?

Corporations in New Mexico need to pay the franchise tax of $50 only once per year. This is a flat fee paid by S corporations in New Mexico.

Capital gains in New Mexico

The incomes derived from capital gains in New Mexico are taxable as personal incomes and taxpayers in this state have the right to claim deductions. This means that a deduction of 50% of the total income derived from capital gains is applicable. However, a deduction of $1,000 of the net capital gains registered in New Mexico might be applicable.