Incorporating in New Mexico

Corporate Name Endings

* The name must contain the separate word “corporation,” “incorporation,” “company,” “limited” or abbreviation thereof. The name must not be the same as or confusingly similar to a name of any domestic or foreign corporation or the name reserved by or registered by another corporation, unless written permission of other corporation is obtained. The name must not imply purpose other than that contained in charter.

Articles of Incorporation Requirements

Director Information

  • Minimum Number – One or more.
  • Residence Requirements. – No provision.
  • Age Requirements – None.
  • Directors are not required to be listed in the articles of incorporation.

Officer Information

  • The officers are not required to be listed in the articles of incorporation.

Stock Information

  • An increase in the shares may cause an increase in the initial filing fee.

Yearly Requirements

Annual Statements

  • Must be filed biannually on or before the 15th day of the 3d month following the end of their tax year. Filing fee, $25.

Income Tax Rate

  • 4.8% of net income up to $500,000; over $500,000 but not over $1,000,000, $24,000 plus 6.4% of excess over $500,000; over $1,000,000, $56,000 plus 7.6% of excess over $1,000,000.

Franchise Tax

  • Tax is imposed on every domestic corporation and every foreign corporation employed or engaged in the transaction of business in, into or from New Mexico or deriving income from property or employment in New Mexico, and on every domestic or foreign corporation having or exercising its corporate franchise in New Mexico, whether active or not. The rate is $50 each tax year.

For more information on taxes, visit www.state.nm.us/tax

John Gordon admin

 

C-Corporation

  • Shareholders have limited liability protection
  • May be listed and traded as a publiccorporation on the stock market or “over the counter”
  • Has a separate and independent tax status from its owners

S Corporation

  • Profits are not subject to “double taxation”
  • Corporate losses may be “passed through” to share holders
  • Shareholders are afforded the same protection as C Corp.

LLC formation

  • Contains characteristics of both corporation and partnership
  • Shareholders may take advantage of “Pass-Through” taxation
  • Limited liability for share holders

Not for profit corp

  • Eligible for tax-exempt status
  • Limited Liability protection
  • Qualify for public and private gains