New Mexico LLC in United States
LLC · Formation from $50
Last verified: June 10, 2026
Corporate Tax
21.0%
State Tax
5.9%
Formation Cost
$50
Annual Fee
$0
Comparison Scores
Privacy, remote setup, banking, and tax efficiency
Calculate full formation cost
Break down one-time filing fees and recurring costs for any supported entity type.
Who Should Choose This?
Profiles that typically benefit from this entity
- Bootstrapped startups and solo founders looking for the lowest possible maintenance costs.
- Non-US residents and digital nomads needing a US entity for payment gateways (Stripe, PayPal).
- E-commerce business owners (dropshipping, Amazon FBA) operating outside of New Mexico.
- Privacy-conscious entrepreneurs who want to keep their names off public state registries.
Who Should Avoid This?
Scenarios where another structure may be better
- Startups planning to raise venture capital or angel investment (should choose Delaware C-Corp).
- Businesses with a physical storefront, employees, or significant operations in another US state.
- Founders seeking the absolute highest level of asset protection for single-member LLCs (Wyoming is better).
Advantages
- +No annual report requirement and $0 annual state fees.
- +Allows for Anonymous LLCs, keeping member and manager names off public records.
- +Very low initial formation fee of just $50.
- +No franchise tax or privilege tax for LLCs.
- +Excellent for non-US residents and digital nomads due to low maintenance and no physical presence requirements.
Disadvantages
- -Not the preferred state for raising venture capital (unlike Delaware).
- -State income tax applies if the LLC conducts business physically within New Mexico.
- -Single-member LLCs may have slightly weaker charging order protection compared to Wyoming.
- -Less established corporate case law compared to Delaware or Nevada.
- -Opening a US bank account remotely can still be challenging for non-residents without a physical US address.
Formation Steps
Choose a unique name for your New Mexico LLC and ensure it includes an LLC designator.
Appoint a Registered Agent with a physical address in New Mexico (costs $35-$150/year).
File the Articles of Organization online with the New Mexico Secretary of State ($50 fee).
Draft an Operating Agreement to outline ownership, management rules, and maintain anonymity.
Obtain an Employer Identification Number (EIN) from the IRS (free, but takes 4-6 weeks for non-US residents without an SSN).
Open a US business bank account (e.g., Mercury, Relay) using your approved Articles, EIN, and Operating Agreement.
Comply with federal requirements, including filing the FinCEN Beneficial Ownership Information (BOI) report within 90 days of formation.
Cost Breakdown
Detailed breakdown of formation and ongoing costs
| Item | Type | Amount |
|---|---|---|
| State filing fee | One-time | $50 |
| Registered Agent | Annual | $35 |
| EIN | One-time | $0 |
| Operating Agreement | One-time | $0 |
| Virtual Office / Mail Forwarding | Annual | $100 |
| First year total | $185 | |
| Annual ongoing | $135 | |
Real-World Examples
Typical use cases for this entity type
- A non-US resident freelance developer sets up a New Mexico LLC to open a Relay bank account and accept USD payments from global clients without paying US state taxes.
- An e-commerce entrepreneur runs a Shopify dropshipping store through a New Mexico LLC to keep their personal name off public records and avoid annual state fees.
- A digital marketing agency owner uses a New Mexico LLC to access US payment gateways like Stripe, keeping overhead costs near zero.
Common Mistakes
Pitfalls to avoid during setup and operations
- Using a home address instead of a registered agent's address, accidentally destroying the anonymity of the LLC.
- Failing to file the mandatory federal FinCEN BOI report within 90 days of formation.
- Mixing personal and business finances, which can pierce the corporate veil and eliminate liability protection.
- Forgetting that 'no annual state fees' does not mean 'no taxes' — federal taxes and potential state taxes still apply depending on operations.
- Paying unnecessary third-party fees for an EIN, which is free to obtain directly from the IRS.
Other entity types
Other formation options in United States
Compare with Other Countries
| Country / Type | Tax | Formation | Annual |
|---|---|---|---|
| 🇺🇸 New Mexico LLC(LLC) | 26.9% | $50 | $0 |
FAQ
How much does it cost to maintain a New Mexico LLC annually?
$0 in state fees. New Mexico does not require an annual report or charge an annual franchise tax. You only pay your registered agent fee.
Can I form an anonymous LLC in New Mexico?
Yes, New Mexico is one of the few states that does not require you to list members or managers on the public Articles of Organization.
Do I need to live in New Mexico to form an LLC there?
No, there are no residency or citizenship requirements to form a New Mexico LLC.
How long does it take to form a New Mexico LLC?
The state typically processes online filings within 1 to 3 business days.
Is New Mexico better than Wyoming for an LLC?
New Mexico is cheaper because it has no annual fees, but Wyoming offers slightly stronger asset protection laws for single-member LLCs.
Do I need a business license in New Mexico?
If you do not have a physical presence or employees in New Mexico, you generally do not need a local business license.
Does a New Mexico LLC pay state taxes?
An LLC is a pass-through entity. If you do not conduct business physically in New Mexico, you typically do not owe state income tax there.
How do I get an EIN for my New Mexico LLC without an SSN?
Non-US residents can obtain an EIN by filling out Form SS-4 and faxing or mailing it to the IRS. It is completely free.
Detailed Tax Rates
Corporate Income Tax
| From | To | Rate |
|---|
The US federal corporate income tax is a flat 21%. New Mexico imposes a flat 5.9% state corporate income tax. However, an LLC is typically treated as a pass-through entity, meaning profits are taxed directly on the owners' personal income tax returns unless the LLC elects to be taxed as a C-Corporation.
Personal Income Tax (Top rate: 37.0%)
| From | To | Rate |
|---|---|---|
| $0 | $12,400 | 10.0% |
| $12,400 | $50,400 | 12.0% |
| $50,400 | $105,700 | 22.0% |
| $105,700 | $201,775 | 24.0% |
| $201,775 | $256,225 | 32.0% |
| $256,225 | $640,600 | 35.0% |
| $640,600 | No limit | 37.0% |
Federal personal income tax rates range from 10% to 37% across seven brackets. Additionally, New Mexico levies a progressive state income tax with rates ranging from 1.5% to 5.9% across six brackets. LLC members must report their share of business income on their personal tax returns.
Capital Gains Tax
20.0%
Federal long-term capital gains are taxed at 0%, 15%, or 20% depending on income, plus a potential 3.8% Net Investment Income Tax. New Mexico taxes capital gains as ordinary income up to 5.9%, but offers a deduction of up to 40% or $1,000 (whichever is higher) for eligible net capital gains.
VAT / GST
0.0%
Registration Threshold: USD100,000
The US does not have a federal VAT. However, New Mexico imposes a Gross Receipts Tax (GRT) that applies broadly to tangible goods, services, digital products, and SaaS. The state base rate is 5.0%, but local jurisdictions add their own taxes, bringing the combined total up to 9.425%.
Withholding Tax
The US imposes a 30% withholding tax on Fixed, Determinable, Annual, or Periodical (FDAP) income, such as dividends, royalties, and interest, paid to non-residents. This rate can be significantly reduced or eliminated under an applicable double taxation treaty.
Payroll & Social Security
For 2026, the FICA tax is 7.65% for both employers and employees (6.2% for Social Security up to a $184,500 wage base, and 1.45% for Medicare). Self-employed LLC owners pay the full 15.3% SECA tax on their net earnings.
Other Taxes
New Mexico Franchise Tax
New Mexico imposes a $50 annual corporate franchise tax on C-Corporations and S-Corporations. However, LLCs are exempt from this tax and do not have an annual reporting fee.
Gross Receipts Tax (GRT)
Instead of a traditional sales tax, New Mexico levies a GRT on businesses for selling property, leasing, or performing services. The combined state and local rates range from 5.0% to over 9.4%.
Formation Requirements
Minimum Capital
No requirement
No minimum capital requirement for a New Mexico LLC.
Local Director
Not Required
No residency or citizenship requirements for members or managers.
Registered Office
Required
Virtual office allowed. $35 - $150 per year for a commercial registered agent.
Notarization Required
No
Power of Attorney (Remote)
Not Required
A formal Power of Attorney is not typically required; a formation service can act as the Organizer to file on your behalf.
Timeline
Standard: 1-3 business days days
Required Documents
Compliance & Reporting
Annual Filings
Audit Requirement
Not Required
Not applicable for standard small LLCs.
Accounting Standard
US GAAP
Tax Return Deadline
April 15 for single-member LLCs; March 15 for multi-member LLCs (Federal).
VAT Filing Frequency
N/A
Data Protection
New Mexico allows 'Anonymous LLCs' where member and manager names are not listed on public state records.
Banking & Payments
Mercury
Remote-friendlyPopular fintech for startups offering fully remote account opening for US LLCs.
Relay
Remote-friendlyBusiness banking platform with multiple checking accounts and physical/virtual cards.
Wise Business
Remote-friendlyExcellent for multi-currency accounts and international wire transfers.
Chase Business
Top traditional US bank, but requires an in-person branch visit to open an account.
Payment Gateways
Stripe, PayPal, Square, Paddle, 2Checkout
Currency
USD
Multi-Currency: Supported
Account Opening
Opening a traditional bank account in the US requires an in-person visit, which is difficult for non-residents. However, non-resident founders can easily open business accounts remotely using fintech platforms like Mercury or Relay. You will need your LLC's approved Articles of Organization, an EIN, and a valid passport.
Practical Information
Timezone
UTC-7 (Mountain Time)
Business Language
English
Legal System
Common law
Ease of Doing Business
#6
IP Protection
The US offers robust intellectual property protection through the USPTO for trademarks and patents, and the US Copyright Office. Federal laws strictly enforce IP rights, providing a highly secure environment for innovation.
Double Tax Treaties
66 countries
Notable treaties: United Kingdom, Canada, Germany, Japan, Australia, France, Turkey
Visa & Residency Options
E-2 Treaty Investor Visa
Allows entrepreneurs from treaty countries to enter and work in the US based on a substantial investment in a US business.
L-1 Intracompany Transferee Visa
Enables a foreign company to transfer an executive, manager, or specialized knowledge employee to its US office or to establish a new one.
O-1 Extraordinary Ability Visa
For individuals with extraordinary ability in sciences, arts, education, business, or athletics.
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Changelog
Data updates and changes on this page
Verified New Mexico LLC formation fees ($50), $0 annual report fees, and anonymous LLC privacy rules for 2026.
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