New Mexico is one of the cheapest states to form and keep an LLC: $50 to file, and no annual report afterward. It’s also known for privacy, since members don’t have to be listed when you form. The New Mexico detail that matters most for day-to-day business is the gross receipts tax (GRT), which works differently from a typical sales tax.
What a New Mexico LLC costs
Table of Contents
| Item | Cost | When |
|---|---|---|
| Articles of Organization | $50 | At formation |
| Annual report | None | — |
| Gross receipts tax registration | No fee | Before you start doing business |
| Local business license | Set by city or county | As required |
Step 1: Choose your LLC name
The name must include "limited liability company", "limited company", "LLC", "L.L.C.", "LC" or "L.C." and be distinguishable from other names on file. Search the Secretary of State’s business records, then check federal trademarks, domains and social handles with our business name checklist.
Step 2: Appoint a registered agent
Every New Mexico LLC needs a registered agent with a physical New Mexico address, available during business hours. You can serve yourself, name another adult or use a commercial agent.
Step 3: File Articles of Organization
File Articles of Organization with the New Mexico Secretary of State, online through its business portal or by mail, and pay $50. You’ll include the LLC’s name, registered agent and office, and the organizer’s information. New Mexico doesn’t require you to list members, which is why it’s often mentioned for privacy. Online filings are usually processed within a few business days.
Step 4: Create an operating agreement
New Mexico doesn’t require you to file an operating agreement, but every LLC should have one, covering ownership, management, profit sharing and what happens when members join or leave. With no members on the public record, the operating agreement is often the key document proving who owns the LLC.
Step 5: Get an EIN and open a bank account
Apply for a free EIN from the IRS online, then open a business bank account using your filed Articles and EIN. See choosing a business bank account.
Step 6: Register for the gross receipts tax
New Mexico doesn’t have a conventional sales tax. Instead, it levies a gross receipts tax on businesses for the privilege of doing business in the state. Key points:
- It applies to most services as well as goods. Consultants, contractors, designers and many other service providers owe it, not just shops.
- It’s a tax on the business, though most businesses pass it on to customers on their invoices.
- Rates vary by location, combining a state rate with county and city rates, and New Mexico generally applies the rate based on where the goods are delivered or the service is performed.
- Some deductions and exemptions apply, for example for certain sales for resale.
Register with the Taxation and Revenue Department to receive a Combined Reporting System (CRS) number, used for GRT and employer withholding. Register before you start doing business.
Step 7: Get local and professional licenses
- Contractors must be licensed through the state’s Construction Industries Division before doing construction work, including many trades and smaller jobs. New Mexico’s licensing rules are broad, so check before you bid.
- Cities, including Albuquerque, Santa Fe and Las Cruces, require business registrations or licenses.
- Many professions are licensed by state boards.
No annual report, but keep records current
New Mexico LLCs don’t file annual reports. That saves money, but nothing prompts you to update the state. If your registered agent or office changes, file the update with the Secretary of State. An out-of-date agent means missed legal papers.
How a New Mexico LLC is taxed
By default, LLC profits pass through to the owners, who pay federal income tax, self-employment tax and New Mexico’s graduated personal income tax. Multi-member LLCs taxed as partnerships file a New Mexico partnership return. LLCs electing C corporation status pay New Mexico corporate income tax. The gross receipts tax is separate from income tax and applies whether or not you make a profit. Ask a tax professional which option suits you.
Hiring your first employee in New Mexico
Beyond the federal steps in our first employee guide, New Mexico employers generally:
- Withhold state income tax using their CRS number and register for unemployment insurance with the Department of Workforce Solutions.
- Carry workers’ compensation insurance once they have three or more employees; construction businesses need it with even one.
- Provide paid sick leave under New Mexico’s Healthy Workplaces Act.
- Report new hires to the state.
Your New Mexico LLC compliance calendar
| Deadline | Filing | Paid to |
|---|---|---|
| Ongoing | Keep your registered agent current | Secretary of State |
| Monthly, quarterly or semiannually | Gross receipts tax returns | Taxation and Revenue Department |
| As assigned | Employer withholding, if you have employees | Taxation and Revenue Department |
| Quarterly | Unemployment insurance reports, if you have employees | Department of Workforce Solutions |
| As required | Contractor and local license renewals | Construction Industries Division; city |
Example: state costs for your first two years
For a single-member LLC:
| Year 1 | Year 2 | |
|---|---|---|
| Articles of Organization | $50 | — |
| Annual report | — | $0 |
| State formation and maintenance total | $50 | $0 |
Gross receipts tax is separate and depends on your sales. Add local licenses and any contractor or professional license. Use our startup cost calculator to plan.
Pricing with the gross receipts tax in mind
Because GRT applies to services, it affects how many New Mexico businesses price their work:
- Show GRT on invoices. Most businesses add it as a separate line, like sales tax.
- Use the right rate for each job location. A contractor working in different cities may charge different rates.
- Include GRT in quotes, so customers aren’t surprised.
- Track receipts by location from day one to make filing accurate.
Our service pricing calculator helps you set a rate that covers costs and taxes.
New Mexico rules for common types of business
Food businesses. Restaurants and food trucks are permitted by the state environment department or local authorities, such as the City of Albuquerque. Home-based food processors can operate under a state permit for certain foods. See our cottage food business guide.
Childcare. Child care centers and homes are licensed by the state’s early childhood education and care department. See our home daycare guide.
Tourism and arts. Galleries, tour operators and lodging businesses in Santa Fe, Taos and elsewhere may face local lodgers’ taxes and permits.
New Mexico compared with nearby states
| State | Filing fee | Recurring state report |
|---|---|---|
| New Mexico | $50 | None |
| Arizona | $50 | None |
| Colorado | $50 | $25 yearly |
| Texas | $300 | Public Information Report, no fee |
| Utah | $59 | $18 yearly |
See our Arizona, Colorado and Texas guides.
Mistakes to avoid
- Treating GRT like a sales tax that only applies to goods. Most services are taxable too.
- Doing construction work without a CID license.
- Charging the wrong GRT rate for the job location, which can leave you paying the difference.
- Letting your registered agent lapse, since there’s no annual report to prompt updates.
- Forgetting that GRT is owed even in a loss year.
- Assuming privacy means anonymity; banks, the IRS and courts can still identify owners.
Frequently asked questions
Does New Mexico require an annual report for LLCs? No. Once formed, a New Mexico LLC has no recurring Secretary of State filing, though tax filings continue.
Do I need to list members when forming? No, which is one reason New Mexico is popular for privacy. Banks will still ask who owns the LLC.
Can I be my own registered agent? Yes, with a physical New Mexico address where you’re available during business hours. That address becomes part of the public record, so some owners who value privacy use a commercial agent.
Do online sellers outside New Mexico owe GRT? Out-of-state sellers that pass New Mexico’s thresholds for sales into the state may need to register and report gross receipts. Check the Taxation and Revenue Department’s guidance for remote sellers.
What does a CRS number do? It’s your New Mexico tax ID for gross receipts tax and employer withholding. You’ll use it on every GRT return.
Next steps
Read the Start a Business A–Z guide, see taxes and bookkeeping for 2026, and plan with the break-even calculator.
This guide is general information, not legal or tax advice. Rates and rules change; check the New Mexico Secretary of State and Taxation and Revenue Department before you file.
Sources
- LLC University, LLC annual fees by state (2026)
- FileForms, state annual report deadlines
- New Mexico Secretary of State, Business Services
- New Mexico Taxation and Revenue Department
Last reviewed October 19, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
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