CobaltProsper

How to start an LLC in New Mexico

By Brent Chudoba, editor Updated

Forming an LLC in New Mexico costs $50 to file the Certificate of Organization with the New Mexico Secretary of State. After that you file a triennial report of $20. New Mexico charges no franchise tax on a standard LLC. New Mexico's Revised Uniform Limited Liability Company Act (HB 281, effective July 1, 2024) replaced the prior Limited Liability Company Act. The formation document is now officially called a 'Certificate of Organization' (the SOS still describes it as 'also known as articles of organization'); the filing fee is $50 (Section 117.A of the Act). The Act also created a recurring TRIENNIAL report, not an annual report, at a $20 fee per filing (Section 117.O), due by the end of the third calendar month after formation and every three years thereafter; a $200 civil penalty applies on top of the $20 fee for a late filing, and the certificate of organization can eventually be administratively cancelled for non-filing (Section 213). This triennial requirement is new since July 1, 2024 and reverses what used to be true (no ongoing SOS filing at all), many secondary sources still describe New Mexico as having no periodic report. Gross Receipts Tax (GRT) applies to LLC business activity at the current statewide base rate of 4.875% plus local increments, in lieu of a conventional sales tax.

How much does it cost to start an LLC in New Mexico?

New Mexico LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Certificate of Organization)$50
Triennial report$20 every 3 years
Franchise or business taxNone
Registered agentRequired

Source: New Mexico Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in New Mexico?

  1. Name your LLC. Pick a name that is available and meets New Mexico naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. New Mexico requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Certificate of Organization. Submit it to the New Mexico Secretary of State and pay the $50 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your triennial report. New Mexico charges $20 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does New Mexico have a franchise tax on an LLC?

No. New Mexico does not impose a franchise tax on LLCs.

How is an LLC taxed in New Mexico?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. New Mexico has a state individual income tax with a top rate of 5.9% (graduated brackets), so those profits are taxed on your New Mexico return on top of federal tax. Six brackets for tax year 2025 and later, under HB 252 (Laws 2024, Chapter 67), the first major bracket restructuring since 2005 (the bottom rate dropped from 1.7% to 1.5% and a new 4.3% bracket was added). Single filers/estates/trusts: 1.5% up to $5,500; 3.2% on $5,500-$16,500; 4.3% on $16,500-$33,500; 4.7% on $33,500-$66,500; 4.9% on $66,500-$210,000; 5.9% over $210,000. Married filing jointly/head of household/surviving spouse: 1.5% up to $8,000; 3.2% on $8,000-$25,000; 4.3% on $25,000-$50,000; 4.7% on $50,000-$100,000; 4.9% on $100,000-$315,000; 5.9% over $315,000. Rates apply to New Mexico taxable income (federal taxable income with state additions/deductions).

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

Sources