Why start a New Mexico LLC?
LLCs are a relatively new type of entity compared to that of a Corporation. By forming a New Mexico LLC, you'll have many benefits to take advantages of. They are much easier to maintain than other entities. Unlike a corporation, LLCs are not required to have annual shareholder meetings. This entity also has the benefits of having “pass through” taxation. You have both these benefits and still protect your personal assets.
Form a New Mexico Limited Liability Company and Control Risk
When you form a New Mexico LLC you form a separate entity from the owners of that company. Therefore, if your company is named in a lawsuit, there are legal provisions and UCC Code to protect the owners, directors, shareholders from personal liability. If you operate your business without the protection afforded by having LLCs status, you can find yourself personally liable for your any and all debts and obligations of your business.
Helpful hints on naming your LLC?
Limited Liability Companies may use the designators LLC and Limited Liability Company. The name of the LLC must be distinguishable from any other LLC already on file with the Secretary of State. Though most states do not recognize words such as, “the, and, etc.” as distinguishing from another company, New Mexico also does not find similar words in Spanish such as “el, las, los, etc” distinguishing from other company names either. Therefore if you were trying to file “Los ABC LLC”, and there is already an existing entity called “ABC LLC”, it would be unavailable because the state would ignore the word not find the word “Los” distinguishing.
How do I file a New Mexico LLC?
If you’d like to file on you own, New Mexico filing fees are $50 for the submitted articles, must be two copies (one may be photocopied). Additional fees may apply if you request an original copy from the secretary of state’s office, since they keep the original copy that you send in. Copies of original documents are $25. All documents must be typed or printed in black ink and must be legible.
What is required to maintain Corporate Status?
In most states an LLC only requires one person, who can hold all positions. You must be careful that your personal and corporate funds are not commingled. You should take extra care to avoid paying obligations of your New Mexico LLC with your personal assets, and personal debts with your LLC assets. If you fail to maintain a very clear distinction between your LLC and your personal assets, the courts can find you liable for LLC debts. A requirement for this separation is having a distinct federal tax id number and a distinct bank and checking account from your personal assets. You want to be certain not to use your social security number on your bank account, credit card, or on signed contracts. If you use your social security number when transaction or entering in signed agreements, than you can be held personally liable for those specific debts or obligations.
Why do I need a Federal Tax ID?
The Tax ID number is usually used when opening a business bank account under the LLC, this way you are separating your personal assets from that of the LLC. You may also use this when you engage in any taxable activity..
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