An LLC is a business structure in the United States. Also known as a limited liability company, this business structure prevents the owners from being personally liable for the company's debts or liabilities. Limited liability companies are hybrid entities. They combine the characteristics of a corporation with those of a partnership or sole proprietorship. It is a great option to keep your personal assets safe while maintaining a professional appearance, similar to a corporation.
Each year an LLC will be required to file an annual report. This details the company’s activities throughout the year. The purpose of an annual report is to give the state information about your LLC/ This might include the names and addresses of directors or managing members of an LLC. It should also include the registered agent’s address.
In New Mexico, there is no annual report required. This means that there is no fee as well. In different states, the fees range between $50 and $400, which must be paid each year on a specific date.
In New Mexico, this is unnecessary which is one reason why many people choose to form their LLC in this state. Some states require you to file a report every two years, which is considered a “Biennial report.”
Although every state has different requirements, it is quite a process to write an annual report. Typically it will require not only your business’s name and address, but also the state in which the company was formed, a list of officers and directors, all business activities conducted within the state, and contact information. This is why forming in New Mexico is so incredible, it allows you to avoid all of this.
If all else fails, you can contact a third party to prepare this for you.
In any state that you are required to file an LLC annual report, you must do so. If you fail to file an annual LLC report in states other than New Mexico, first you will be given a warning. This warning comes in the form of a fine. Eventually, if you do not comply and file the annual report (along with pay the fee) your LLC will eventually be dissolved.
Forming an LLC is a great option for many different businesses, but especially in New Mexico. As long as you are able to have a physical presence in New Mexico, or you have a registered agent in New Mexico, then this may be possible. By avoiding filing fees and annual reports, it can not only be less costly but make the process of forming and maintaining an LLC hassle-free as well.