New Mexico Incorporation
New Mexico Incorporation
Form a New Mexico Corporation
Forming a New Mexico corporation is easy with the New Mexico incorporation specialists at LawInc.com. Form an New Mexico corporation easily by clicking on “Order Now.” Please feel free to call us, anytime, with any questions. Incorporate in New Mexico today.
Incorporate in New Mexico
Incorporating a New Mexico corporation can be critical to businesses based of New Mexico. At LawInc, we prepare your New Mexico corporation Articles of Incorporation, bylaws, stock certificates, stock ledger and more. We can also obtain your New Mexico corporation Tax ID number and file your New Mexico S corporation election with the IRS.
New Mexico Incorporation Information
The following information will be helpful when deciding to incorporate in New Mexico.
New Mexico Corporation Name
The first step in registering a New Mexico corporation is selecting the business name. New Mexico corporation names:
- Must contain “Corporation”, “Incorporated”, “Company”, “Limited”, “Corp.”, “Inc.”, “Co.” or “Ltd.”.
- Must be distinguishable upon the records of the New Mexico Secretary of State from any other formally organized entity registered with the New Mexico Secretary of State’s office, such as corporations, limited liability companies, limited partnerships, and limited liability partnerships.
- May not contain a word or phrase that indicates or implies the corporation is incorporated for a purpose other than a lawful business purpose or for a purpose stated in its articles of incorporation.
An available New Mexico corporation name may be reserved with the New Mexico Secretary of State for a 120 day period.
LawInc.com permits you to choose up to three names and will conduct a name search for your New Mexico corporation, prior to filing. Create a New Mexico corporation with confidence that your New Mexico corporation name is available.
New Mexico Corporation Formation
New Mexico Filing Procedure: To incorporate in New Mexico, you must file New Mexico Articles of Incorporation with the New Mexico Secretary of State.
New Mexico Corporation Articles of Incorporation: The New Mexico Articles of Incorporation should include:
- Name of the New Mexico corporation.
- Duration of the New Mexico corporation.
- Purpose of the New Mexico corporation.
- Number of shares of the New Mexico corporation.
- Name and address of New Mexico registered agent.
- Name and address of the directors.
- Name and address of the incorporator.
New Mexico Filing Fee: The filing fee for the Articles of Incorporation is based on the authorized shares of the corporation at the following rate: $100 Minimum fee plus $1 for each 1,000 authorized shares. The maximum fee is $1,000.
New Mexico Corporation Incorporator: Minimum number of incorporators is one (1) (a natural person over 18 years of age) and there is no requirement that the incorporator be a resident of New Mexico.
New Mexico Corporation Directors: The minimum number of New Mexico directors is one (1).
New Mexico Corporation 1244 Stock: Election to have stock classified as IRC Section 1244 stock allows for a substantially larger application of the deduction from business losses to ordinary income than regular stock. With regular stock, you can only offset $3,000 against ordinary income. With the issuance of Section 1244 Stock, the corporation can claim an ordinary loss deduction of as much $100,000.
New Mexico Registered Agent: When you incorporate in New Mexico, a New Mexico corporation must maintain a registered agent and office to receive service of process in New Mexico. The New Mexico registered agent should be available, at a New Mexico physical address, during normal business hours to accept important legal and tax documents on behalf of the New Mexico corporation. The registered agent can either be (1) an individual with a physical New Mexico address or (2) a corporation authorized to serve as registered agent.
New Mexico Corporation Post-Filing Requirements
New Mexico Corporation Initial Report: New Mexico corporations must file an initial report within 30 days of incorporation.
New Mexico Corporation Annual Report: New Mexico corporations must file biennial reports which are due in even years or odd years based on whether the last digit of the corporation filing number is even or odd. The cost of the biennial report is $25.
New Mexico Corporate Minutes: New Mexico corporations should hold and document annual shareholder and director meetings.
New Mexico Corporation Taxes
New Mexico Corporation Taxes: For information on New Mexico income tax, visit: http://www.tax.newmexico.gov.
New Mexico C Corporation: When incorporating in New Mexico, all New Mexico corporations formed by default are “C” corporations. A New Mexico C corporation is a New Mexico corporation that has not made an election to be an “S” corporation. The term C corporation is specifically used because the entity is taxed under subsection C of the IRS code. New Mexico C corporations are taxed at two levels (“double taxation”). This means that the corporation itself pays its own tax when it makes money (the first tax). The owners or shareholders are then taxed again when they are paid a salary or dividend by the corporation (the second tax). Despite double taxation, New Mexico C corporations offer many planning and benefit opportunities.
New Mexico S Corporation: A New Mexico S corporation is a corporation that has made an election with the IRS to be treated for tax purposes as a “pass-through entity.” This means that corporate profits and losses are passed through to the shareholders (owners) who report them on their own personal tax returns and pay the tax at the individual level. The corporation pays no federal income tax at the corporate level. New Mexico S corporations are not subject to the double taxation C corporations encounter. The State of New Mexico recognizes federal S corporation status.
These are the 3 main advantages of forming a New Mexico S corporation:
- No double taxation: One of the main advantages of New Mexico S corporation status is that it avoids the double taxation that occurs with a regular New Mexico C corporation. In a New Mexico C corporation, the corporation pays income tax on its profits and, if those profits are distributed to shareholders, the shareholders pay income tax on the distribution.
- Loss deductions: The availability of losses. Shareholders of a New Mexico S corporation generally may deduct their share of the corporation’s net operating loss on their individual tax returns in the year the loss occurs. Losses of a New Mexico C corporation, however, may offset only the corporation’s earnings.
- Self-employment tax savings: By electing S corporation status, only the earnings actually paid out to you as salary are subject to payroll taxes; money left in the business is not subject to payroll taxes or self-employment tax. All income passes through, but its tax status depends on whether it is classified as salary or ordinary income.
Federal Tax Identification Number/Employer Identification Number (EIN): The Federal Tax Identification Number, also known as the Employer Identification Number (EIN) is a number that is assigned to a business by the Internal Revenue Service. An EIN is like a Social Security Number for a business. It is a requisite for certain business functions such as opening bank accounts or hiring employees. When incorporating in New Mexico, New Mexico corporations should obtain an EIN.
New Mexico Incorporation Summary
New Mexico Corporation Conclusion: Please contact us 24/7 with any questions regarding forming a New Mexico corporation.