New Mexico is a great state to form an LLC because of it’s relaxed requirements and low taxes. When forming an LLC in New Mexico, there are certain steps like conducting a business search and drafting an operating agreement that you can’t get out of. Filing an annual report for your New Mexico LLC is one of those steps. Filing your annual report helps you maintain your LLCs benefits like asset protection. In this guide, we will cover how to file and the fees associated. Whether you have a single member LLC or an anonymous LLC, you are required to file an annual report.
An LLC (Limited Liability Company) is a way to structure your business that protects the individual members from any lawsuit or liability the business may incur. An LLC makes your business a legal entity and works in a similar way to sole proprietorship or partnership, but with more protection and rights like a corporation has. An LLC is a good middle ground for those seeking to shelter their personal assets from the volatility of their business.
An LLC Annual Report (sometimes called an Annual Statement or Statement of Information) is a document that all LLC’s must file with their state on a regular basis.
Annual reports must be filed with the state that the LLC was formed under, and are intended to cover the details of the LLC from the previous year, and to give the state basic information about the LLC and notify it of any changes. The annual report will include items like the names of any managers of the account as well as the name and address of the registered agent. Some states will provide forms for LLCs to use for this purpose, while others will accept the report in any format as long as it has all the required information on it.
Although you may wish to file other reports either with the state or within your LLC, your annual report is the only one that is required to be filed by every LLC every year (or every other year in some states) to stay in compliance with state regulations. The state your LLC is registered in must have up to date information regarding all pertinent aspects of your business, including names and addresses for communication and tax purposes.
Some states have forms they want you to use which will make filing easier, while others don’t. Although each Secretary of State office may have different requirements for an annual report, in general you will need to include the following:
The good news is that New Mexico is one of the few states in the country that do not require LLCs to file annual reports. Furthermore, they do not require an annual fee like most states do. This does not, however, mean that forming an LLC in the state of New Mexico is free, as they have other methods for collecting fees and taxes.
If you have any specific questions about the taxes and fees that may be applicable to your New Mexico LLC, you should contact the office of the Secretary of State.
For those LLCs who may be physically located in New Mexico, but have formed their LLC in a different state, or those in a different state completely, the basic steps for filing an annual report and generally the same:
The first step for filing an annual report is to check with the Secretary of State’s office that the LLC was formed under. Each state will have their own requirements as to when the report should be filed, how frequently it needs to be filed, what information needs to be on the report, and what kind of filing fee is associated with the report. Contrary to the name, “annual report,” not all states require this to be filed each year, and some might only need it every two years or even every ten years.
The second step is to find out the best method for sending your report in. Most states have options to either mail in your annual report or file online through the Secretary of State’s website. Whichever method you opt for, ensure that your company retains a copy of the report for its own files after it has been sent in. If there are any discrepancies, it’s important to have your copy on hand to reconcile them.
The third step is to check with your state for the due date, as this too will vary from state to state. Some states require this to be done on the anniversary of the date of formation, while others have a set date each year that all LLCs must file by. It is important to have this done on time so that your LLC does not lapse and stays current and in compliance with all state regulations.
The last step is to fill out your report thoroughly, ensuring you include all necessary information, and then send it on time to the state either in the mail or online.
There is almost always a cost associated with filing a report in state’s other than New Mexico and this can vary widely with some fees as high as $500 and some as low as $10. These fees help fund the Secretary of State’s office and the Business Services division that oversees LLCs, and in New Mexico these revenues are collected by different means than with annual filing fees..
Again, this will vary from state to state, but most states will issue a late charge if you do not file on time. However, if your LLC still does not file its report after the late charge has been levied, the state will then be in a position to dissolve (end) your LLC. Because of this, it’s best to stay on top of the filing. If your LLC is dissolved you will have to start the process of formation all over again and have to pay the fees associated with it as well.
The nice thing about forming an LLC in New Mexico is that you don’t have to worry about your LLC lapsing due to unpaid annual fees, though like all states, there are certain requirements you’ll have to meet to ensure you’re in compliance.