Let us help you navigate doing business in New Mexico. The state offers unique opportunities including relaxed regulations and low fees for its limited liability companies. There is no annual report, which means no annual fee or chance to disclose your identity. Learn more about forming a New Mexico LLC.
The most common question is "Why bother forming an LLC when I can operate in my own name?". The answer is that business is inherently risky. People may even sue you just because they assume you have money. Setting up a company helps stop creditors. Without protection, a business creditor can go after everything you own, e.g. your home, bank account and car. Beyond minizing risk, sole-props pay higher taxes under the new tax laws. These benefits make creating a company an obvious choice.
Limited liability companies have quickly become the most popular choice for small business owners. This is because they are easier to set up and manage when compared to a traditional corporation.
For example, New Mexico LLCs have no annual reports and do not face double taxation. Corporations must file a report, pay a state fee, and pay taxes on their earnings. Owners must then pay taxes when the earnings are distributed to them.
Corporations offer a few things LLCs do not. For example, multiple share classes and a board of diretors for overseeing officers. If you are a small company, though, these are not much of a benefit when compared to the increased cost of compliance.