If you’re moving to New Mexico and you want to take your LLC with you, you have a few options. Here’s what you should know:
Can I move my LLC operations to New Mexico?
Yes—although you can’t simply rent office space in New Mexico and operate business as usual. To officially run your LLC in New Mexico, you’ll have to file paperwork with the New Mexico Business Services Division. There are a couple ways you can choose to proceed:
- Create a new LLC – This is the most straight-forward option, though it may be costly and time-consuming. Essentially, you’ll need to dissolve and wind-up your LLC in your previous state, then form a New Mexico LLC from scratch.
- Foreign registration – If you plan to ALSO continue operating your LLC in its current state of domicile, you can file a Foreign LLC Application for Registration in New Mexico. This would allow your out-of-state LLC to lawfully conduct business in New Mexico.
Foreign registration will require you to pay annual fees both in New Mexico and in your LLC’s current state of domicile. So, if you don’t plan to operate your LLC in any state other than New Mexico, it may be in your best interest to form a brand new NM LLC.
How can I avoid starting a new NM LLC from scratch?
You might consider an LLC merger. A merger is when two companies combine resources and finances to become a single business entity. In this case, you could potentially form a New Mexico LLC then merge your current LLC into that NM entity. Depending on the scope of your business, this might be a better option than starting from scratch.
However, one thing to keep in mind is you’ll only be able to merge your LLC with a New Mexico LLC if the laws of your current state allow it. (You can read more in the Requirements and Instructions for Merging into a Limited Liability Company.) It’s a good idea to consult a business attorney to make sure this option is available to you, and right for your business.
Does New Mexico allow for LLC domestication?
No. Domestication—the state-assisted process of transferring an existing business to a new state—is often the easiest and most cost-effective way of relocating a company to a new state. However, New Mexico’s state laws don’t currently support LLC domestication.