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The US Small Business Administration has reported that New Mexico has 158,844 small businesses, which make up 99% of all the businesses registered in New Mexico. There are 343,648 people employed by small businesses in the state, and this makes up 54% of all of those who are employed in New Mexico. Between March 2019 and March 2020, opening and enlarging establishments in New Mexico contributed 73,995 new jobs while closing and shrinking establishments lost 67,488 jobs. This means that over the time period, there was a net increase of 6,507 jobs. Small businesses contributed 82.3% of the net increase in employment which works out to 5,355 new jobs. 

New Mexico 

One of the biggest advantages of incorporating an LLC in New Mexico is the privacy that this entails. An LLC can be owned and operated privately without the public being aware of who is the owner of the LLC. The LLC owner has extremely few obligations placed on them in general in New Mexico, and when it comes to privacy, there is no better state to establish an LLC than New Mexico. 

Another advantage that New Mexico offers is that the state has relatively low fees, especially when compared to other states. The filing fee in New Mexico is $50, and there is no annual fee or annual cost for the LLC. However, there is an annual tax in New Mexico that a business will need to pay even if it does not earn a cent. Thankfully the minimum for this tax is also $50, which makes it relatively affordable. 

New Mexico LLCs are relatively easy to establish and do not require any additional steps or paperwork than the standard LLC procedure. Additionally, LLCs in New Mexico are also exempt from having to file annual reports or even have an operating agreement. However, LLCs will need an operating agreement if they wish to receive the asset protection that an LLC provides. 

As a final last advantage, business owners can elect to postpone their start of business by as many as 90 days if this is financially feasible or advantageous. There are many reasons to choose New Mexico to start an LLC, and these are privacy, convenience, and cost-effectiveness. 


Wyoming is another popular state for business owners, and it is easy to see why. There are no personal income taxes, corporate income taxes, or franchise taxes. In addition to this lack of tax, the state of Wyoming also has one of the lowest sales tax rates in the US. The state offers what is known as a lifetime proxy. This is an individual who can represent someone else’s stake in the LLC for the purposes of increased privacy. This feature is compelling, but it is not as all-encompassing as the privacy that New Mexico offers to its LLC owners. Wyoming does charge a bit more than New Mexico when it comes to the filing fee at $100. Additionally, there is an annual fee of $60 for the LLC, which will need to be paid to the Secretary of State’s office. 

Wyoming is a compelling choice for business owners, especially those who value privacy; however, New Mexico just edges it out in this regard. Both states are on equal footing when it comes to ease of registration, but Wyoming does have appealing tax laws which New Mexico can’t quite match. 


Delaware has a strong reputation as the state to look for when forming a business. Delaware is a very business-friendly state, and it offers low filing feeds, a simple formation process, and low franchise taxes. Delaware is also one of the few states that allow individuals to omit their personal information from the LLC formation paperwork, which is very helpful for privacy. However, this does not rival the privacy that a New Mexico LLC can offer to its owners. 

If an individual forms an LLC and decides to be taxed as a corporation, then the state of Delaware will not collect corporate income tax from the business. This can be very helpful, especially for entrepreneurs who are just getting started. Like the other states mentioned above, an individual does not have to be a resident in Delaware to be able to form an LLC in the state. Only the registered agent needs to have a Delaware address, and this can be taken care of by a registered agent service. 

A strong advantage that only Delaware offers is the Chancery Court. This is a constitutional court that only handles business matters. This means that if an LLC does end up in a legal situation, it will be handled in the Chancery court, and it will not need to go through the general court system. 

Final Thoughts 

There are many appealing states for business in the US. New Mexico stands out as a state that is ripe for business and especially ripe for LLC formation. This is the case because of its low state fees, low administrative requirements, and extremely high protection of privacy and other assets. Wyoming and Delaware are also excellent options; however, they do not necessarily have the exact mix that New Mexico is able to offer. Ultimately, the right state for an LLC will depend on the owner and what their requirements are.