Annual Filing Requirements for New Mexico LLC

Learn about New Mexico LLC annual report and tax filing procedures.

To establish and operate a New Mexico limited liability corporation (LLC), you must prepare and submit a number of paperwork with the state. This article discusses the most significant New Mexico LLC continuous reporting and state tax filing obligations.

Report Annual

New Mexico, unlike most other states, does not require LLCs to produce annual reports. New Mexico, on the other hand, requires LLCs to submit an Income and Information Return for Pass-Through Entities (PTE). The needed form may be downloaded at the New Mexico Taxation and Revenue Department’s website (TRD).

State Corporate Taxes

All New Mexico limited liability companies (LLCs) must register with the Taxation and Revenue Department (TRD) and get a Combined Reporting System (CRS) identification number. Registration may be done online or on paper (using Form ACD-31015, Application for Business Tax Identification Number).

Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members. LLCs do not pay income taxes by default; only its members do. Some states charge LLCs a separate tax or fee for the privilege of conducting business in their jurisdiction. New Mexico, on the other hand, is not one of those states.

However, in certain situations, the owners of an LLC elect to have their firm taxed as if it were a corporation. This decision is made by submitting IRS Form 2553 to the IRS. (The form is available on the IRS website.) When an LLC elects to be taxed as a corporation rather than as a pass-through entity, the firm must submit a separate tax return. New Mexico, like almost every other state, has a corporate income tax. The corporation tax in New Mexico is determined using a modest series of marginal rates. You must pay this tax if your LLC is taxed as a corporation. Furthermore, New Mexico levies a company franchise tax (usually $50 per year). This tax will also apply if your LLC is taxed as a corporation. Both taxes must be paid to the TRD. To pay both taxes, use the state’s company income tax return (Form CIT-1 NM).

Employer Taxes in the State

Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) Employers in New Mexico, on the other hand, must pay state taxes.

To begin, you must withhold and pay employee income taxes to the TRD. You must submit withholding taxes on a regular basis (usually monthly or quarterly) using Form CRS-1. Form RPD-41072 should also be used to keep an annual summary of employee withholding.

You’ll also need to register to pay state unemployment insurance (UI) taxes. The New Mexico Department of Workforce Solutions is in charge of these taxes (DWS). These taxes must be registered for online. Then, on a quarterly basis, you will report your earnings and pay DWS UI taxes. For further information, including the mandatory electronic reporting system,

Tax on Gross Receipts

If your LLC sells items to New Mexico clients, you must collect and pay the state’s gross receipts tax (essentially a sales tax). When you complete the mandatory registration with the TRD for a CRS ID number, you register for this purpose (see above). Form NC-BR may be used to register. After registering, you will get a Certificate of Registration. Form CRS-1 is used to record and pay the gross receipts tax. You may file either on paper or online.

Other States Registration

If you want to do business in states other than New Mexico, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.