Creating a New Mexico LLC

So, you have a great idea for a business. You've decided to quit your regular, full-time job to pursue the life of a small business owner selling snow to Eskimos from your home in New Mexico. You've also got two great friends who want to help you, so you've decided to become an LLC. Good luck with your endeavors. But before you push your website live, buy spots for TV commercials, and start stocking an inventory, there are a few things you'll need to do. I've jumped through my share of hoops, so I'm publishing this list roughly in order. Note: I'm writing this as if you're located in Albuquerque. I've provided information about the offices of other locations.

Does the word "EIN" mean anything to you? How about social security number? An EIN, or employer identification number, is a unique identifier you're going to need for your business in order to complete any of the following steps. The prerequisite to filing for an EIN is fairly low: a name for your business, what you're going to be doing, whether you're going to run a non-profit organization, and a rough idea of what your classification will be. Since this article is about LLCs, that last one probably isn't too much of a worry. An EIN can be obtained online at the IRS. I ran into problems using my social security number, as I've never filed federal taxes before, so be sure you'll be in the system. If not, you can apply by phone or fax as well (Form SS-4).
Cost: This is free to obtain.

The second step, assuming you are operating in New Mexico, is to file Articles of Incorporation. This is necessary as this is the step which makes you an officially protected LLC. LLC stands for Limited Liability Company, and this is what gives you the limited liability. The form is available from the New Mexico Public Regulations Commission (Warning: This is a PDF file and may make your computer run slowly temporarily) and is mailed to the address at the top of the form. Be sure to follow all the instructions.
Cost: $50, plus postage

The third step is to obtain a New Mexico State Tax ID. The form can be printed from the New Mexico Taxation and Revenue Department (Warning: This is a PDF file and may make your computer run slowly temporarily). You will need to know your EIN, and if you are filing as an LLC, your Articles of Incorporation number. You will also need to know how you will be filing your taxes and your accounting method (For example, semiannual by cash accounting method). I recommend you read about accounting methods and tax filing status extensively, or consult an accountant, as it is tricky.

After you've completed the form, you must take it to one of their offices. The main office is in Santa Fe, with district locations available in Albuquerque, Farmington, Las Cruces, and Roswell. Call ahead to be sure you can file there (I only tried Albuquerque) and what you will specifically need to bring. They may ask to see a photo ID, such as a state identification or a driver's license, so have it handy. When you are registered, you will have a New Mexico State Tax ID, also called a CRS NM ID, among other things. They should also give you a CRS-1 tax packet (hold onto this!) and explain when your first filing is due. If you have any more questions, be sure to ask; they are friendly and know what they're doing.
Cost: Free

The final requirement for operating an LLC in New Mexico is a business license for your location. Your required license varies depending on location. For example, those within the city of Albuquerque obtain a different license than those in Bernalillo County, but outside those city limits. I recommend you contact your local City Hall or Courthouse, as they can direct of the correct license and location.
Cost: May vary according to location; $35 in Albuquerque

Besides the four requirements above, you may also need:

• Additional licensing, depending on the products or services offered by your business. A list of examples is available at the New Mexico Regulation and Licensing Department.
• You may, individually, need licensing for such products and services, and any employees may as well.
• Businesses with employees must also file with the Department of Labor.
• Consider your DBA (doing business as) name and your trade name, as differences may hold legal implications. Consult an attorney if you don't understand this or can't find valid, up-to-date information.
• Businesses may file unique trademarks and service marks with the New Mexico Public Regulation Commission-Corporations Bureau or the New Mexico Secretary of State. Keep in mind these two departments hold separate databases, so registering with only one may not prevent another business from registering with the other.

If you have any questions about the above, you may look for information or ask questions through the SBA, a free service for small business owners. You may also contact the New Mexico Small Business Development Center, which has offices all over the state.