The rules and costs for incorporating as a business vary by state. In New Mexico, the process of officially forming a corporation is relatively easy, fast, and affordable, which has made it a favorable option for founders who want liability protection without a pile of paperwork. Below, you’ll learn what it takes to incorporate in New Mexico, what it costs, and how the state’s rules are different.

What’s in this article?

• How do you incorporate a business in New Mexico?
  
• What are the benefits of incorporating in New Mexico?
  
• What are the legal requirements to incorporate in New Mexico?
  
• How much does it cost to incorporate in New Mexico?
  
• What are the steps to register an LLC or corporation in New Mexico?
  
• How Stripe Atlas can help
  

How do you incorporate a business in New Mexico?

Incorporation specifically refers to forming a corporation, rather than a limited liability company (LLC). New Mexico makes incorporation simple: you pick your business’s structure, check that your business name isn’t taken, file your formation documents with the secretary of state, and appoint a registered agent who’s based in New Mexico.

From there, you’ll need to file the typical state tax registrations if you’re planning to hire or sell taxable goods. Once you’ve formed your corporation, file an annual report and keep a local address on record to remain in good standing.

What are the benefits of incorporating in New Mexico?

Incorporating in New Mexico allows for strong privacy, low costs, and convenient digital infrastructure.

Here are some of the benefits:

• Privacy: New Mexico doesn’t require LLCs to disclose members’ names in their public filings. The only name on record is your registered agent’s, which keeps ownership details out of the public sphere.

• Cost: Formation fees are inexpensive in New Mexico, compared with business hubs such as Delaware or California. LLCs benefit from no annual reporting fees or franchise taxes, so you avoid recurring costs that add up fast.

• Digital infrastructure: All business filings with the New Mexico secretary of state are online, which makes it easy to file formations, annual reports, and certificate requests remotely. Filings can be processed quickly without mail delays.

What are the legal requirements to incorporate in New Mexico?

New Mexico keeps its incorporation requirements minimal: you need to appoint a registered agent, have the relevant tax accounts, and file formation documents. Let’s take a closer look.

Formation documents filed with the state

LLCs file articles of organization. Corporations must file articles of incorporation, which need to include their business name, registered agent’s information, and their business structure. This document should be filed with the New Mexico secretary of state.

A registered agent

Your registered agent must have a physical street address in New Mexico (not a PO Box). The agent is your official point of contact for legal and tax documents. You or an employee can carry out this role, or you can opt to use a professional registered agent service.

State tax accounts

If you plan to hire employees, you’ll need to register with the New Mexico Department of Workforce Solutions for unemployment insurance and with the Taxation and Revenue Department for withholding taxes. If you’re selling taxable goods or services, you’ll also need to register for gross receipts tax.

Industry-specific licenses

Certain businesses—such as restaurants, contractors, and healthcare providers—will also require local or state licenses to operate after incorporating.

Internal governance documents

Corporations must draft company bylaws that outline corporate procedures and the responsibilities of directors, officers, and shareholders. While corporations don’t need to file bylaws with the state, they are legally binding. For LLCs, it’s generally recommended (though not required) to write an operating agreement that outlines the business’s corporate governance and clarifies ownership and management.

How much does it cost to incorporate in New Mexico?

Compared with other states, New Mexico keeps incorporation costs low and predictable.

Here’s what you can expect:

• One-time filing fees: It costs $50 to file articles of organization for an LLC. Filing articles of incorporation costs $1 for every 1,000 shares authorized, with a minimum of $100 and a maximum of $1,000.

• Annual fees: Corporations must pay an annual report filing fee of $25.

• Franchise tax: Corporations are also subject to a $50 annual franchise tax.

• Registered agent service: If you don’t have a physical address in New Mexico, you’ll pay around $100–$300 per year for a registered agent service.

• Licensing or permit fees: Certain industries require licenses or permits. Fees vary by industry.

What are the steps to register an LLC or corporation in New Mexico?

While the filing process is straightforward, the details differ depending on whether you’re setting up an LLC or a corporation. Here’s how it works.

Steps for forming an LLC

Pick a business name

Your business’s name must be distinct from existing businesses on file with the secretary of state, and it must include “LLC” or “Limited Liability Company.”

File articles of organization

File articles of organization online with the secretary of state. You’ll need to provide your business name, registered agent information, and management structure (i.e., member-managed versus manager-managed).

Appoint a registered agent

Your registered agent must have a physical street address in New Mexico and be available during business hours to receive timely legal or state documents.

Draft an operating agreement

This isn’t filed with the state, but it documents ownership, management responsibilities, and how profits are divided. This document can help avoid disputes, and banks or investors often request one.

Register for state taxes (if required)

You’ll need to register for gross receipts tax if you’re selling taxable goods or services, plus employer taxes if you plan to hire.

Steps for forming a corporation

Pick a business name

It must be unique in New Mexico’s records, and it must include “Corporation,” “Incorporated,” “Company,” or an abbreviation (e.g., “Corp.,” “Inc.”).

File articles of incorporation

These must be filed online with the secretary of state. You’ll need to provide your business’s name, registered agent information, and share structure (i.e., the number of authorized shares and classes of stock).

Appoint a registered agent

The requirements for registered agents are the same for both corporations and LLCs.

Adopt bylaws

This is an internal document that sets rules for how the corporation operates: shareholder meetings, board structure, and officer roles. It’s not filed with the state, but it’s key for governance and compliance.

Hold an organizational meeting

Incorporators or initial directors meet to adopt bylaws, issue shares, and appoint officers.

Register for state taxes (if required)

You’ll need to register for payroll and withholding if you hire employees, and for gross receipts tax if you sell taxable goods or services.

File annual reports

Unlike LLCs, corporations in New Mexico must file an annual report with the secretary of state.

How Stripe Atlas can help

Stripe Atlas sets up your company’s legal foundations so you can fundraise, open a bank account, and accept payments within two business days from anywhere in the world.

Join 75K+ companies incorporated using Atlas, including startups backed by top investors like Y Combinator, a16z, and General Catalyst.

Applying to Atlas

Applying to form a company with Atlas takes less than 10 minutes. You’ll choose your company structure, instantly confirm whether your company name is available, and add up to four cofounders. You’ll also decide how to split equity, reserve a pool of equity for future investors and employees, appoint officers, and then e-sign all your documents. Any cofounders will receive emails inviting them to e-sign their documents, too.

Accepting payments and banking before your EIN arrives

After forming your company, Atlas files for your EIN. Founders with a US Social Security number, address, and cell phone number are eligible for IRS expedited processing, while others will receive standard processing, which can take a little longer. Additionally, Atlas enables pre-EIN payments and banking, so you can start accepting payments and making transactions before your EIN arrives.

Cashless founder stock purchase

Founders can purchase initial shares using their intellectual property (e.g., copyrights or patents) instead of cash, with proof of purchase stored in your Atlas Dashboard. Your IP must be valued at $100 or less to use this feature; if you own IP above that value, consult a lawyer before proceeding.

Automatic 83(b) tax election filing

Founders can file an 83(b) tax election to reduce personal income taxes. Atlas will file it for you—whether you are a US or non-US founder—with USPS Certified Mail and tracking. You’ll receive a signed 83(b) election and proof of filing directly in your Stripe Dashboard.

World-class company legal documents

Atlas provides all the legal documents you need to start running your company. Atlas C corp documents are built in collaboration with Cooley, one of the world’s leading venture capital law firms. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution, and tax compliance.

A free year of Stripe Payments, plus $50K in partner credits and discounts

Atlas collaborates with top-tier partners to give founders exclusive discounts and credits. These include discounts on essential tools for engineering, tax, finance, compliance, and operations from industry leaders like AWS, Carta, and Perplexity. We also provide you with your required Delaware registered agent for free in your first year. Plus, as an Atlas user, you’ll access additional Stripe benefits, including up to a year of free payment processing for up to $100K in payments volume.

Learn more about how Atlas can help you set up your new business quickly and easily, and get started today.