Incorporating in New Mexico requires you to understand the basics of New Mexico corporation and partnership law. The structure of your corporation will be instrumental in the success of your business. It will affect your tax treatment, filing requirements, funding potential and liability obligations.
The ownership plans for your business entity will help determine how to incorporate in New Mexico. A traditional corporation is useful to raise money with investors. New Mexico corporate law requires complex ongoing paperwork, and will tax your business income on corporate and shareholder levels.
Registration under New Mexico LLC laws is less complicated. Taxation occurs only on one level, the structure is simple, and requires only two people to incorporate. Under New Mexico partnership law, a partnership is appropriate for business ventures that have a limited time frame, or a small number of people involved. Taxation benefits are similar to a New Mexico LLC, in that there is no double taxation. The drawbacks include increased exposure to liability for the actions of the partnership.
The options available under New Mexico corporation and partnership law are:
1. A profit corporation.
2. A limited liability company (New Mexico LLC).
3. A Limited Partnership (LP).
Action Steps
The best contacts and resources to help you get it done
Choose what works under New Mexico corporate law
The decision on whether to form a corporation or partnership depends on your long-term goals for the business. Ownership is easier to divide in a corporation, while partnerships are not well suited for growth or sale, and do not offer stocks. Taxation is different for both types of entities. And, finally, New Mexico corporation registration, including New Mexico partnership law, requires varying filing of paperwork and fees.
I recommend: FindLaw will guide you through picking the entity structure that works for you. If you need further advice, look for a site such as
lawyers.com to find a New Mexico attorney who specializes in NM corporation law or NM partnership law.
Make your New Mexico corporation a reality
To begin your New Mexico corporation, search for a business name that satisfies New Mexico corporation law. New Mexico corporate law requires filing certain forms as well as submitting fees. The filing may include articles of incorporation, or, for New Mexico LLC registration, articles of organization. Fees will vary depending on the structure. New Mexico does not offer online filing, so file paperwork in person or through the mail.
I recommend: Conduct a
New Mexico corporation search to find a unique business entity name that has not been used or reserved. Find the appropriate business entity form on the
Public Regulation Commission Corporations Bureau forms page.
The Business Owner's Toolkit has a summary of the required fees. For a limited partnership, refer to the requirements on the
Secretary of the State's Operations page.
Know the details of New Mexico corporation law
You must abide by all New Mexico rules and regulations in regard to New Mexico corporations, so review the related statutes carefully.
I recommend: Review
Chapter 53 of the New Mexico Code to understand your obligations when incorporating in New Mexico. Read the
Corporation Report Filing and Compliance guidelines to better understand the requirements. Finally, register your new business with the
State of New Mexico Department of Taxation and Revenue.
Tips & Tactics
Helpful advice for making the most of this Guide
- Remember that once you have filed for incorporation in New Mexico, your job is not done. New Mexico corporations must file annually to remain in goon standing.
The official source of New Mexico Corporation and Partnership Law is
the New Mexico Corporation and Partnership Law page at Business.com
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