Great question! It’s a little bit easier than you may think.
An LLC is an abbreviation for “limited liability company.” An LLC protects it’s LLC business owner(s) by means of limiting the owner(s)’ personal liability. This means that generally speaking, business debts and other claims associated with the business–lawsuits included–are usually attributed to the assets of the business itself, rather than an individual owner. It can also give the business flexibility when filing for taxes.
Selecting a name
Two things to consider when choosing an LLC business name. First, choose a name that isn’t the same as an existing LLC here in New Mexico. Second, your business name must adhere to state regulations with regard to LLC names. In New Mexico, an LLC name MUST contain the words “Limited Liability Company,” “Limited Company,” or the abbreviation “L.L.C.,” “LLC.” “L.C.” or “LC.”
Your articles of organization
This is the basic form that establishes your LLC. The information you provide with your articles of organization is fairly simple–your LLC’s name, physical address associated with the LLC, etc. A signature is also required.
Selecting a registered agent
New Mexico requires one person act as the registered agent for your LLC. This person is your LLC’s person of contact for the state of New Mexico and is also designated to receive legal documents in association with any lawsuits involving the LLC. The business owner may act as their LLC’s registered agent, or a third party may act as the registered agent.
In New Mexico, the fee to apply for an LLC is $50.
Drawing up an LLC operating agreement
This can be the most complicated step with establishing an LLC. Although an operating agreement is not required by the state of New Mexico with applying for an LLC, it is an imperative part of clearly outlining the owner(s)’ rights and responsibilities associated with their LLC. Among other things, this outline should include these rights and responsibilities, voting power and percentage interests with regard to the company. We are here to help with any questions you may have relative to applying for your company’s LLC.