Many of our articles refer to filing your LLC in New Mexico rather than your home state. If you are wondering why, this article will help you consider the pros and cons of a New Mexico LLC.
The number one reason our clients prefer to file in New Mexico is Privacy! Something that none of us seems to have much of these days. Many States offer information regarding LLCs, such as manager name, address, membership, etc online. They are public knowledge. However, New Mexico, does not require the manager name as part of the filing of the Articles of Organization. Therefore, this information does not appear online and is not part of the public record. If privacy is important to you; New Mexico may be a good choice.
Another reason to consider New Mexico is the lack of annual reporting. Many states require an annual report (or sometimes quarterly) as well as a fee; flat or franchise depending on the state. The fees vary but can range from $50 to $800 and it’s one more piece of paper to remember to file each year. New Mexico does not have a reporting requirement or annual fee.
However, you should keep in mind that an annual Registered Agent fee of $125 does apply. (Read our article on registered agents for more information https://www.checkbookira.com/registered-agent/).
It’s important to understand that a New Mexico LLC can do business in your home State or any other. If you are investing in property in your State (or another); New Mexico might not be the best choice. Different States have different rulings regarding the ownership of property so it is best to check before you apply for a LLC.
Overall, New Mexico is a good option if privacy and lack of annual reporting are important to you.