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Although fees vary by state when it comes to forming an LLC and keeping it in compliance, New Mexico is considered one of the best states to form an LLC in. This is because there is no annual fee.
To incorporate or not, that is the questionat least for many small businesses that earn above $60,000 annually. This is because, once you exceed the $60,000 mark, the lower tax rate of a corporation becomes much more appealing than the personal marginal rate.
New Mexico corporations and LLCs are formed by filing the Articles of Incorporation or Articles of Organization with the NM Secretary of State. It costs $125 or more to form a New Mexico corporation or $50 for a NM LLC.
The C Corporation is the most common form of corporate entity. Also known as a general for profit corporation, the C Corporation is owned by shareholders. The shareholders elect a board of directors to create and direct the high-level policies of the business.
What you Need to Know Before Forming your LLC. If we are just looking at the cost to form an LLC, Kentucky is going to be the cheapest state to form an LLC at $40 per LLC formation.
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Annual report and franchise tax. New Mexico does not require LLCs to file an annual report. New Mexico imposes a franchise tax on LLCs if they paid federal income tax. The franchise tax is filed along with the state income tax, and is due by the 15th day of the third month following the close of the tax year.
New Mexico imposes its corporate income tax on the net income of every domestic corporation and every foreign corporation that: Is employed or engaged in the transaction of business in, into, or from this state, or. Has income from property or employment within this state.
S-corporations, limited liability companies and other pass-through entities doing business in the state must file a New Mexico income tax return.
A general Corporation making a Subchapter S Election or an LLC with or without a Subchapter S Election pays no federal tax on its taxable income and no employment taxes on its distributions to stockholders.
There are generally 6 types of corporations in the United States: sole proprietorship, partnership, LLC, S Corp, C Corp and nonprofit.

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