Incorporate in New Mexico
Allow us to save you the time and effort of incorporating. We will file your articles, provide bylaws and other important documents, and help with your annual report. You may use our address for anything so long as we remain your registered agent. Our service handles these steps so you don't have to. After formation, you may save time by placing additional orders via the portal.
Incorporating your business gives you liability protection by making your company a separate entity from shareholders, officers and directors. This means everyone's risk is limited to their initial investment in the company.
Corporations are capable of acting on their own and conducting business. An incorporated company is responsible for its own debts, can own property and enter into contracts. The company can sell stock to raise capital, exists after the original owners have died, and shares can be easily transferred.
There are some disadvantages to corporations. They are not easy to start and costs are usually high initially. There is a lot more paperwork and quite a bit more government oversight. Corporations also pay more taxes than do other forms of business. Unless you receive specific advice to form a Corporation, we often advise clients to form an LLC instead. Especially given New Mexico has the nation's cheapest limited liability company.
S corporations provide the same asset protection as c corporations. An S-corp is only a tax classification and does not impact the corporate veil. An S corporation allows owners to only be taxed once, unlike a C corporation which taxes owners twice.
If you decide to sell an S Corporation, the capital gains tax owed is going to be cheaper than it would be if you owed capital gains on a C Corporation. There are more complex considerations, though, and you should consult an accountant.
S Corporations also present disadvantages as well. For example all stockholders must be US citizens or at residents and there may only be 75 shareholders.
Obtaining 501(c)(3) status brings a wide range of benefits. The first is a federal tax exemption, making both contributions to your company and profits made by your company tax-free. Your corporation will have access to grants and funding for which it would not otherwise qualify. You will be permitted to participate in governmental programs only available to non-profit organizations, including job training for your employees. You will have the benefit of lower rates for many products and services. These are a small handful of the benefits.