New Mexico LLC Annual Report and Franchise Tax (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

A New Mexico LLC files no annual report and pays no franchise tax to the Secretary of State - a key differentiator among states. New Mexico corporations still file a biennial corporate report, and the state repealed its corporate franchise tax (effective for the 2020 tax year). A New Mexico LLC's real ongoing duties are federal tax, New Mexico gross receipts tax, and keeping its registered agent current.

Quick Answer

LLC annual report: None - New Mexico LLCs file no periodic report with the Secretary of State
LLC franchise tax: None - New Mexico imposes no franchise tax on LLCs
Corporations: Must file a biennial corporate report (LLCs do not)
Corporate franchise tax: Repealed, effective for the 2020 tax year
Real LLC duties: Federal tax, gross receipts tax, current registered agent
Gross receipts tax: Register with the NM Taxation and Revenue Department

New Mexico LLCs File No Annual Report

Most states make an LLC file an annual or biennial report to stay in good standing. New Mexico does not. A New Mexico LLC has no annual report obligation to the New Mexico Secretary of State - there is simply no periodic report to file and no report fee to pay at the entity level. Once you form the LLC by filing your Articles of Organization, there is no recurring Secretary of State filing to keep the LLC alive. This makes New Mexico one of the lowest-maintenance states for LLC compliance.

This is genuinely unusual, so it is worth stating plainly: if you own a New Mexico LLC and are looking for the "annual report" everyone talks about in other states, there is not one for you. Do not pay a third-party service to file a New Mexico LLC annual report that does not exist. Your entity-level responsibility is narrow - keep a valid registered agent and registered office on record. For how this compares to states that do require a report, see the business tax hub and our Nebraska annual report guide.

No Franchise Tax on New Mexico LLCs

New Mexico also imposes no franchise tax on LLCs. A franchise tax is a charge some states levy for the privilege of existing as a registered entity, separate from income tax. New Mexico does not apply such a tax to LLCs. Just as important, New Mexico repealed its corporate franchise tax, effective for the 2020 tax year, so the state no longer collects franchise tax from corporations either. The result is that neither LLCs nor corporations owe a New Mexico franchise tax today. For the general concept, see the Cornell LII definition of franchise tax.

Because there is no franchise tax and no LLC annual report, the entity-level cost of maintaining a New Mexico LLC is close to zero. That does not mean a New Mexico LLC is tax-free - it still owes federal income tax and, if it sells taxable goods or services, New Mexico gross receipts tax. The savings are specifically at the Secretary of State and franchise-tax level, not on income or sales. Review the numbers in our New Mexico LLC cost guide.

Corporations Are Different: The Biennial Report

The no-report rule applies to LLCs, not to every entity. New Mexico corporations - both for-profit and, under separate rules, nonprofit - must file a biennial corporate report with the Secretary of State. That report keeps the corporation's information current every two years and carries a filing fee. If you run a corporation rather than an LLC, this requirement does apply to you, and missing it can jeopardize the corporation's good standing. Confirm the current biennial report fee and due date on the New Mexico Secretary of State website, since fees change.

Obligation	New Mexico LLC	New Mexico corporation
Periodic state report	None	Biennial corporate report
Franchise tax	None	None (repealed for 2020 tax year)
Registered agent	Required and ongoing	Required and ongoing
Federal income tax	Yes, per classification	Yes

If you are choosing between structures, this maintenance difference is one factor among many; compare in S-corp vs. LLC and the how to form an LLC hub. Verify your entity type in the New Mexico business entity search if you are not sure which rules apply to you.

What a New Mexico LLC Actually Must Do

With no annual report and no franchise tax, a New Mexico LLC's real ongoing obligations fall into three buckets:

Federal tax. By default a single-member LLC is a disregarded entity and a multi-member LLC is a partnership for federal tax, as the IRS explains. The LLC can also elect corporate or S-corporation treatment. Owners typically report business income on their personal returns and pay self-employment tax.
New Mexico gross receipts tax. If the LLC sells goods or services, it registers with the New Mexico Taxation and Revenue Department, collects gross receipts tax, and files returns. See New Mexico LLC tax filing for the mechanics.
Registered agent and address. The LLC must keep a valid registered agent and registered office on file with the Secretary of State. If the agent resigns or the address changes, update the record promptly.

Beyond these, activity-specific licenses may apply - see the New Mexico business license guide and the national business license overview. If you hire employees, you also handle EIN and payroll obligations. And if you ever wind the business down, follow how to dissolve an LLC in New Mexico to close it out cleanly rather than letting it lapse.

Understanding New Mexico Gross Receipts Tax

Because it replaces the "annual report" as the main recurring task for many owners, the gross receipts tax (GRT) deserves a closer look. New Mexico's GRT is the state's version of a sales tax, but legally it is imposed on the seller for the privilege of doing business in New Mexico. Sellers typically pass it through to customers. A business registers with the New Mexico Taxation and Revenue Department, receives a business tax identification number, collects GRT on taxable receipts, and files periodic returns. Rates vary by location because they combine state and local components, so the rate depends on where the sale is sourced.

GRT is broader than a typical sales tax because it can apply to services as well as goods, with various deductions and exemptions. Getting registration and sourcing right is the practical core of New Mexico LLC compliance. Keep your GRT account, your federal filings, and your registered agent current, and your New Mexico LLC stays in good standing - without ever filing an annual report or paying a franchise tax. For related terms, see the glossary and what is a DBA if you also operate under a trade name.

Frequently Asked Questions

Does a New Mexico LLC file an annual report?

No. New Mexico does not require LLCs to file a periodic or annual report with the Secretary of State. This is a key difference from most states. A New Mexico LLC's ongoing duties are federal tax, gross receipts tax registration, and keeping its registered agent and address current.

Does a New Mexico LLC pay franchise tax?

No. New Mexico imposes no franchise tax on LLCs. The state also repealed its corporate franchise tax, effective for the 2020 tax year, so no franchise tax applies to LLCs or corporations. LLCs still owe federal income tax and, if they have sales, gross receipts tax.

Do New Mexico corporations file a report?

Yes. Unlike LLCs, New Mexico corporations must file a biennial corporate report with the Secretary of State. The requirement applies to corporations, not to LLCs. Confirm the current corporate report fee and due date on the New Mexico Secretary of State website.

What are the ongoing obligations for a New Mexico LLC?

A New Mexico LLC pays federal income tax based on its tax classification, registers for and remits New Mexico gross receipts tax if it sells goods or services, and keeps its registered agent and registered office current with the Secretary of State. There is no annual report or franchise tax.

What is New Mexico gross receipts tax?

New Mexico gross receipts tax is the state's version of a sales tax, imposed on the seller for the privilege of doing business. Businesses register with the New Mexico Taxation and Revenue Department, collect the tax on taxable sales, and file returns. Rates vary by location.

Can a New Mexico LLC lose good standing?

A New Mexico LLC has no annual report to miss, but it can still fall out of good standing if it fails to maintain a registered agent or registered office, or does not respond to Secretary of State notices. Keeping the agent and address current is the main entity-level duty.

More New Mexico business guides

Form An Llc Registered Agent Articles Of Organization Llc Cost Dba Filing Operating Agreement Llc Tax Filing Business Entity Search Business License Dissolve An Llc Get An Ein In Foreign Llc Sole Proprietorship S-Corp Election

Sources

New Mexico Secretary of State - Start a Business (LLC formation; no LLC annual report).
New Mexico Secretary of State - Business Maintenance (corporate biennial report).
New Mexico Secretary of State - Business Services.
New Mexico Taxation and Revenue Department - Gross Receipts Tax Overview.
New Mexico Taxation and Revenue Department - Register Your Business.
New Mexico Taxation and Revenue Department - Businesses.
New Mexico Taxation and Revenue Department - Gross Receipts Location Code and Tax Rate Map.
IRS - Limited Liability Company (LLC) (default tax classification).
IRS - Single Member Limited Liability Companies.
IRS - Self-Employment Tax.
IRS - Business Structures.
Cornell Law School Legal Information Institute - Franchise tax (Wex).
Cornell Law School Legal Information Institute - Limited liability company (Wex).
Cornell Law School Legal Information Institute - Gross receipts (Wex).
IRS - Employer ID Numbers (EINs).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the New Mexico Secretary of State and the New Mexico Taxation and Revenue Department before acting.