New Mexico LLC Has No Annual Report: What That Means, Verified for 2026
People searching for the cheapest state to maintain an LLC often find New Mexico near the top of the list. The claim is that New Mexico LLCs have no annual report requirement. If true, it means you pay the formation fee once and owe nothing to the state every year after that.
That claim is accurate. This article verifies it, explains what "no annual report" actually means in practice, covers what New Mexico LLCs do still need to handle, and explains why this benefit matters for long-term cost-conscious business owners.
Nothing here is legal or tax advice. Consult a licensed New Mexico attorney or CPA for guidance specific to your situation.
The Annual Report Requirement (That New Mexico Doesn't Have)
Most states require LLCs to file an annual report or biennial report with the secretary of state. Annual reports typically include:
- Confirmation of the LLC's registered agent and principal office address
- Names and addresses of officers or managers (varies by state)
- A filing fee (usually between $20 and $300 depending on the state)
Failing to file the annual report can result in late fees, loss of good standing, and eventually administrative dissolution of the LLC.
New Mexico does not require this annual filing. New Mexico LLCs pay the $50 formation fee when the LLC is created. After that, there is no annual report to file and no annual state fee to pay to maintain the LLC's active status.
Why New Mexico Is the Only State Without an Annual Report
As of this writing, New Mexico remains the only state in the country that does not require an annual or biennial report from LLCs. Every other state has some form of periodic filing requirement.
The absence of this requirement is not an oversight or a loophole. It reflects New Mexico's statutory framework for LLCs. New Mexico Statutes section 53-19-35, which governs the LLC's ongoing obligations, does not include a periodic report or renewal requirement. The statute simply does not require it. Asset protection attorney Garrett Sutton has noted this makes New Mexico particularly useful as a low-maintenance holding entity for investors who want to minimize administrative overhead while keeping a separate legal container for assets. Garrett Sutton, Sutton Law Center (Rich Dad Advisors). (https://sutlaw.com)
What New Mexico LLCs Actually Cost Long-Term
| State | Formation Fee | Annual State Fee | 10-Year State Cost |
|---|---|---|---|
| New Mexico | $50 | $0 | $50 |
| Wyoming | $100 | $60/yr | $700 |
| Nevada | $75 + $150 initial list | $350/yr | $3,725 |
| Delaware | $110 | $300/yr | $3,110 |
| Texas | $300 | Franchise tax (often $0 for small LLCs) | $300+ |
For a small LLC that is being maintained for a holding purpose, a side business, or a long-term asset container, the ten-year cost difference between New Mexico ($50 total) and most other states ($700 to $3,725) is substantial.
You can see our current registered agent pricing for New Mexico at /pricing/.
What New Mexico LLCs Do Still Need
Registered agent. New Mexico requires every LLC to maintain a registered agent with a physical New Mexico street address. This is an ongoing requirement. If you change registered agents or if your registered agent resigns without a replacement, the LLC can be administratively dissolved.
Our New Mexico registered agent services are at /services/.
Federal taxes. New Mexico's no-annual-report policy is a state-level rule. Federal tax obligations apply regardless of state. If your LLC earns income, you file a federal return. A single-member LLC files on Schedule C (or Schedule E for rental income). A multi-member LLC files a Form 1065 partnership return. Consult a CPA for guidance on your specific tax situation.
New Mexico state taxes. New Mexico does impose personal income tax on residents and on businesses with New Mexico-sourced income. If your LLC is operated by a New Mexico resident or generates income from New Mexico activities, state income tax may apply. The absence of an annual report does not exempt an LLC from state income tax obligations.
Operating agreement. New Mexico does not require an operating agreement to be filed publicly, but having one is important for governing how the LLC operates, what happens if a member withdraws, and how income is distributed.
New Mexico's Other Key Advantage: Member Privacy
Beyond the no-annual-report feature, New Mexico offers a notable privacy advantage at formation.
New Mexico does not have a separate annual report where member names would later become public. In states that require annual reports listing members or officers, an initially private LLC may see its ownership disclosed each year at renewal time. New Mexico's no-annual-report structure means there is no annual filing where member names must be provided.
Is New Mexico the Right Choice for Your LLC?
Best fit for New Mexico LLCs:
- Long-term holding entities where minimizing ongoing cost is the priority
- Side businesses with modest revenue that want minimal state overhead
- Privacy-motivated business owners who want low public disclosure
- Investors maintaining multiple LLCs in a portfolio who want to minimize the annual fee per entity
Less ideal for:
- Businesses with significant operations in another state (you may owe that state's fees and taxes regardless of where the LLC is formed)
- Businesses seeking the Delaware Chancery Court's reputation for institutional transactions
- Real estate investors whose properties are all in one state (forming in the property's state may be more practical and may avoid foreign registration costs)
More information about when out-of-state formation makes sense is on our blog at /blog/.
We provide educational information and registered agent services in New Mexico. We are not a law firm and we are not a CPA firm. This article is for educational purposes only and does not constitute legal, tax, or financial advice. Verify current New Mexico LLC formation fees, requirements, and tax rules at sos.nm.gov and the New Mexico Taxation and Revenue Department. Sources: N.M. Stat. ยง 53-19-35 (New Mexico LLC Act, no periodic report requirement); Garrett Sutton, Sutton Law Center, Rich Dad Advisors (sutlaw.com).