Is New Mexico right for you?
Most states want something from you every year — a report, a fee, a signature. New Mexico wants none of it. Once your LLC is formed, there is no annual report to file and no recurring state charge to forget. The only ongoing cost is your registered agent.
Privacy matches Wyoming’s. Member and manager names are not required on the Articles of Organization, so the public record shows the company and its agent, not the people behind it.
Set against that: New Mexico is slower than Wyoming to process filings, and if you actually earn income sourced inside the state you will meet a gross receipts tax that behaves like a sales tax but reaches services too. For an online business earning outside New Mexico, neither point usually applies.
- Solo founders who want the lightest possible admin
- Small online businesses where a $60 annual fee genuinely matters
- Holding structures that will sit dormant for long stretches
- Processing is slower than Wyoming or Florida — plan for extra days
- Gross receipts tax reaches services, not just goods, on New Mexico-sourced income
- Little name recognition with banks and investors compared with Delaware or Wyoming
What New Mexico taxes
A summary, not advice — your actual position depends on where you live, where your customers are, and how the company is treated federally.
Income tax
Graduated, up to roughly 5.9%, and only on New Mexico-sourced income
Sales tax
Gross receipts tax around 5% at state level, more with local rates — it applies to services too
Franchise tax
None
New Mexico for a non-resident founder
No residency requirement and no annual filing to miss from a different time zone — which is exactly why it suits founders who travel or who do not want a recurring U.S. deadline in their calendar.
What New Mexico asks for every year
Formation is the easy part. These are the obligations that keep the company alive — and the ones people forget.
- 01
No annual report
New Mexico does not require LLCs to file an annual or biennial report. There is no recurring state fee.
- 02
Registered Agent
Must be maintained continuously at a physical New Mexico address. This is your only fixed yearly cost.
- 03
BOI Report
Filed federally. Due within 30 days of any change to your ownership details.