It’s crucial for New Mexico business owners to comprehend the regulations and expenses related to managing a Limited Liability Company (LLC). The requirement to submit an annual report to the state is one of the most frequent queries from LLC owners.
LLCs must submit an annual report to the Secretary of State in New Mexico each year. By the end of the month that marks the LLC’s anniversary, the report must be submitted. Your annual report is required every year by the end of June, for instance, if your LLC was established in June.
The report must contain the following details: the name and address of the LLC, the name and address of the registered agent, the names and addresses of all members and managers, the reason the LLC was formed, and the date the LLC was formed. Your yearly report can be submitted electronically via the Secretary of State’s website.
A single-member LLC in New Mexico is required to submit both the annual report and the state tax return. This is due to the fact that LLCs must pay state income tax on their profits as New Mexico is not a “pass-through” state for tax purposes.
The IRS does not require a single-member LLC to file Form 8832 unless the LLC chooses to be taxed as a corporation rather than a sole proprietorship. If you opt to submit Form 8832, you also need to submit a corporate state tax return.
In New Mexico, filing an annual report costs $25. There is no way to waive this fee; it must be paid at the time of filing. In addition to the $25 filing fee, you will also be assessed a $200 late fee if your annual report is not submitted on time. In New Mexico, creating an LLC costs $50. This amount covers the Secretary of State’s filing fee for the Articles of Organization. Additionally, there are extra costs for accelerated processing and, if required, name reservations.
In conclusion, it’s critical to keep up with your annual report filings and state tax requirements if you run an LLC in New Mexico. An annual report is reasonably inexpensive to file, but there are serious consequences for doing so after the deadline. As usual, you should seek advice from a legal or tax expert to make sure you are abiding by all of your responsibilities as an LLC owner.
An LLC is taxed in New Mexico as a pass-through entity, which means that its earnings and losses are reported on the personal federal and state tax returns of each member rather than the LLC itself. As a result, the members are responsible for paying taxes on their proportionate share of the LLC’s profits or losses, rather than the LLC itself paying taxes on its income.