You might think about setting up a S company if you wish to start a business in New Mexico. A type of corporation known as a S corp offers pass-through taxation and minimal liabilities. We’ll walk you through the process of forming a S company in New Mexico in this post.
Select a Name for Your Corporation in Step 1 Choosing a name for your organization is the first step in creating a S corp in New Mexico. The name must be original and unclaimed by another corporation operating in the state. By performing a search in the New Mexico Secretary of State’s company name database, you can determine whether the name you have in mind is available.
File Articles of Incorporation in Step 2 You must submit Articles of Incorporation to the New Mexico Secretary of State after deciding on a name. Your corporation’s name, goals, registered agent, and the total number of authorized shares must all be listed in the articles. The articles can be submitted by mail or online.
Step 3: Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS)
After your S corporation is established, you must obtain an EIN from the IRS. For tax purposes and to open a business bank account, you need an EIN.
Register for State and Local Taxes in Step 4 S corporations in New Mexico are required to register with the New Mexico Taxation and Revenue Department due to the state’s corporate income tax. Additionally, you might need to register for local and state taxes like the tax on business personal property and gross receipts.
New Mexico: Is it a Tax Haven? No one considers New Mexico to be a tax shelter. It nevertheless has a corporate income tax and other taxes that firms must pay, even if its tax rates are lower than those of some states. Is New Mexico Beneficial for an LLC? Due to its low yearly and filing fees, New Mexico is a desirable state for LLCs. The state also provides a high level of protection for the private assets of LLC members. Does My Business Need to Be Registered in New Mexico? You must register your business with the New Mexico Secretary of State if you intend to conduct business there. All forms of enterprises, including S corporations and LLCs, must comply with this.
In conclusion, creating a S company in New Mexico entails settling on a name, submitting the necessary paperwork, applying for an EIN, and registering for state and local taxation. Despite not being a tax haven, New Mexico is a suitable jurisdiction for LLCs and provides robust protection for private assets. Make sure to register your business with the Secretary of State if you intend to conduct business in New Mexico.
No, a S Corp cannot operate under a DBA name. A DBA is merely a false name that a business entity uses to carry on operations under a name other than its legal name. A particular kind of corporation that is set up under Subchapter S of the Internal Revenue Code is known as a S Corp. As a result, a S Corp cannot utilize a DBA as its legal name and must have a name that is registered with the state. To conduct business under a different name or for marketing purposes, a S Corp may use a DBA.