New Mexico Foreign Qualification
New Mexico is home to many great business opportunities. But if your business exists in another state and you wish to branch out into New Mexico, you’ll have to go through the process of foreign qualification in order to maintain compliance and get the results you need.
What is Foreign Qualification?
Foreign qualification is the process of registering a business from another state to do business in New Mexico. “Foreign” in this case refers to another state, not another country, and no matter what your business activity is it’s important that you go through the process of foreign qualification in order to achieve compliance.
Why Does A Company Need Foreign Qualification?
Why You Need To Do It – Any corporation or LLC will be required to complete foreign qualification if it wishes to have any kind of business presence in a state other than the one your business was formed in. This includes everything from opening a new store to having some representatives working within the state.
When Should You Do It? – As soon as you decide that you will be branching out into New Mexico you should get the ball rolling on foreign qualification. This ensures that any potential delays won’t impact your business plan. Generally, you will need to receive New Mexico foreign qualification if your company falls under any of the following criteria:
- Has a physical presence in New Mexico
- Buying a property there
- Have remote employees
- Accepts orders in New Mexico
- Owns a bank account in New Mexico
What Happens If Your Entity Does Not Foreign Qualify?
Without registration your business won’t be able to bring any lawsuits forth in the state. You also will be held liable for various fees and fines including up to $200 per year that you operate without being registered. Back taxes and tax related bills may also apply and create hardship for a business.
Steps To Obtain Foreign Qualification
There are several steps that a business must take in order to properly receive New Mexico foreign qualification. These include the following.
1. Obtain Certificates – You’ll have to file a Foreign Limited Liability Company Application for Registration to foreign qualify as an LLC and an Application for Certificate of Authority if registering a corporation. Either form is available online for download from the New Mexico Secretary of State website. You will also need to obtain a Certificate of Good Standing or Existence from the state where you formed your business. Additionally, you will have to file the Statement of Acceptance of Appointment by Designated Initial Registered Agent form.
2. Collect And Submit Information – The form will request a variety of basic information about your business.
LLC
- LLC name registered in the home state
- An alternate name if your original name is already in use
- Name of the home state
- The original date of formation
- Email address and phone number for contact person
- Purpose of the business you will conduct in New Mexico
- Period of duration
- Name and address of registered agent
- Address of your registered office in the home state, if needed
- Principal office address
- Names of all who are legally responsible to manage the LLC
- An authorized signature
Corporation
- Corporation Name
- An alternate name if your original name is already in use
- Name of the home state
- The original date of formation
- Email address and phone number for contact person
- Principal office address
- Purpose of the business you will conduct in New Mexico
- Period of duration
- Name and address of registered agent
- Registered office in the home state
- Mailing address of the corporation
- Business address in New Mexico, if any
- Name and addresses of the initial board of directors (at least 1 officer and 1 director)
- The aggregate number of shares issued, itemized by class and series
- An estimate of the gross amount of business the corporation will transact during the fiscal year
- An estimate of the value of all property the corporation owns during the fiscal year
- An authorized signature
3. Appoint Registered Agent – Your registered agent will serve as the primary point of contact between the state and your business, handling most of the work regarding qualification. The majority of businesses choose to let a third party organization like DoMyLLC serve as their registered agent in order to simplify things for themselves.
4. File The Application – Once you complete the information, file the form with the $100 filing fee for LLCs and a minimum of $200 for corporations.
5. Ongoing Maintenance – For an LLC in New Mexico, there is no annual or biennial report requirement. Corporations, however, must file an annual report by the 15th day of the fourth month after the year end, each year. Generally, this means that the report must be filed by April 15th. There is a filing fee of $25.
What Is the Difference Between Foreign Qualification And Incorporating?
With incorporation, a brand new business entity is formed. Foreign qualification doesn’t create a new business or modify the structure of an existing one. Instead, it simply allows a corporation or LLC business in another state without having to form an entirely new business.
How DoMyLLC Can Assist With Streamlining The Process
We provide full filing and registration for your business, taking the burden off your shoulders. You won’t have to deal with paperwork, stress, or managing the process in the least. This gives you more time to focus on running your business. Our team offers:
- Dedicated account managers
- Name availability checks
- Full filing and registration services
- Ongoing customer support
If you’re thinking of branching out, our team is here to help with the New Mexico foreign qualification. Contact us today to learn more.
New Mexico Foreign Qualification FAQs
A certificate of good standing, as well as the Foreign Limited Liability Company Application for Registration or the Application for Certificate of Authority must be filed.
There is a $100 filing fee to register an LLC and a minimum of $200 to register a corporation in New Mexico.
Any business operating in another state that wishes to branch out into New Mexico.
An attorney is not required for foreign qualification. However, businesses are always advised to discuss their plans with an attorney to ensure full legal protection and compliance.
Basic business information about your company including things like:
- Business name
- Business address
- State of formation
- Type of business
- Registered agent information
You’ll have to create a fictitious name of your business and file under it instead. This will have no impact on the name you operate under in other states.
New Mexico Business Resources:
New Mexico Office of Secretary of State
Phone Number:
505.827.4511
Address:
New Mexico Corporations Division
325 Don Gaspar Suite 300
Santa Fe, NM 87501