Summary
The fact that you may need to register with state agencies like New Mexico Secretary of State is a sneaky misconception that many folks miss.
However, with the rise of remote work, states have begun cracking down and levying penalties for those who (unknowingly) fail to register.
If you're considering operating in New Mexico, use this guide to:
- Explore the that triggers the need to register with the New Mexico Secretary of State, including criteria such as physical presence, economic activity, and advertising efforts.
- Determine where and how to register with the New Mexico Secretary of State.
- Understand additional requirements such as Registered Agents, registration with other state departments, and ongoing annual reports.
What criteria would trigger the requirement to register with the New Mexico Secretary of State?
What's considered "engaging in business" in New Mexico
According to the New Mexico Taxation and Revenue Department, "engaging in business" means carrying on or causing to be carried on any activity with the purpose of direct or indirect benefit. Here's a breakdown of what qualifies:
Physical Presence: Having any of the following in New Mexico typically indicates you're doing business:
- An office, store, warehouse, or other physical location.
- Employees, representatives, or agents conducting business in the state.
- Owning or leasing real or tangible property in New Mexico.
Economic Activity: Engaging in these activities within New Mexico usually suggests you're doing business:
- Selling goods or services to New Mexico customers (includes online or remote sales).
- Providing services within New Mexico.
Nexus and Sales Tax
New Mexico, like many states, follows the concept of nexus for sales tax purposes. Nexus means having a sufficient connection with the state to create a tax obligation. Here's what could establish nexus:
- Physical presence in New Mexico, as mentioned above.
- Having sales representatives soliciting business in the state.
- Maintaining inventory or a warehouse in New Mexico.
- Exceeding certain sales thresholds for remote sales into New Mexico (specific thresholds might vary depending on the type of good sold).
Where do I register, and what else is required?
- A Certificate of Good Standing is required (dated within the past 30 days)
In addition:
A Registered Agent is required to serve as the company's physical in-state presence to receive important legal documents. Do not fall victim to the common misconception that you can leverage an in-state employee as your Registered Agent. It's far too risky.
You'll want to review the other registrations required in New Mexico. Here's a New Mexico specific guide we put together.
What is the registration fee?
The fee charged by New Mexico is $200+.
How long does New Mexico usually take to process?
New Mexico usually takes approximately New Mexico Taxation and Revenue and Department of Workforce Solutions typically are processed right away. Secretary of State usually takes 3 - 4 weeks to process. to process registrations.
What is required ongoing?
Each state has a complex schedule of required annual reports, which can vary by entity type. Let's take a look at New Mexico's:
C-Corporation
- Filing Date: By the 15th day of the 3rd month after fiscal year-end
- Filing Frequency: Biennial
LLC
- Filing Date: Not required
- Filing Frequency: Not required
Non-Profit
- Filing Date: By the 15th day of the 5th month after fiscal year-end
- Filing Frequency: Biennial
There is an Easier Way
Automate registration and annual report tracking in AbstractOps.This guide should definitely help reduce some of the confusion for New Mexico. However, if you have multiple states to worry about, you may look to:
Automate state registrations and annual reports
Centralize email, snail mail, state ID’s, and registered agents, and
Take control of action items, eliminating risks before they become penalties.
Start the AbstractOps product demo to see how easy this can be.
Note: For the avoidance of doubt, nothing provided here shall contemplate, constitute or include tax or legal advice. Always double check with state agency websites for the most up-to-date requirements.
