New Mexico Entity & Business Formation
Many people seeking to start a business wonder “How do I form a business in New Mexico?” We can help you answer this question. In addition to Entity Formation we offer services related to the formation of a business such as establish tax identifications and other required business permits. See the Business law practice page, or contact us for more information.
An Albuquerque business lawyer can help you form an S-Corporation today. An S corporation combines the taxation of a partnership or LLC with structure of a corporation. Because corporate tax rates are high, an S-Corporation can be a useful business structure, because the profits are taxed to the owner based on the number of shares. Like a corporation or LLC the S-Corp is a structure that limits the owner’s liability.
Limited Liability Company
An Albuquerque entity formation attorney can help you if you decide to form a New Mexico LLC (limited liability company). A limited liability company is a useful for many different types of business. A limited liability company is easily formed by filing Articles of Organization with the New Mexico Public Regulation Commission. The company should also adopt an operating agreement; otherwise the company will be subject to the default operating agreement created by statute. An Albuquerque business attorney can help you create an operating agreement to suit your company’s needs.
A limited liability company is useful because it provides limited liability to its members. This very important feature allows people to invest in a company with the risk being limited to the amount invested. The other important feature of a limited liability company is that it is not subject to double taxation. Double taxation is a feature of a corporation where it has to pay tax on its profits and then payments to owners (dividends) also get taxed. With a limited liability company the owner gets taxed on the business’ profits less its expenses; this is known as pass through taxation. A limited liability is treated in this manner because the IRS does not recognize the limited liability form for tax purposes. The owners are taxed on the profits of the company even if they keep the money in the company. A New Mexico Business law attorney can help you take advantage of forming an LLC.
Non Profit Corporation
Whether you need help with the formation of your company as a non-profit under New Mexico law or you need help filing your application for tax exempt status, our New Mexico non-profit attorney can help you. A Non-profit corporation can be subject to strict formalities, which if not observed can jeopardize its tax exempt status. Formation of the non-profit under a particular state is just the first step. After formation the corporation must apply to the Internal Revenue Service for recognition as a tax exempt entity. The IRS has certain requirements for a corporation to be recognized as tax exempt. An Albuquerque non-profit attorney can help you form your company to qualify for tax exemption; for more information see our nonprofit practice page. Recognition as a tax exempt organization is critical for many businesses seeking to survive off of donor funding.
An Albuquerque non-profit lawyer can help you run your non-profit so that you do not jeopardize your tax exempt status. All non-profits must operate in accordance with its bylaws, often this requires meeting and notice to directors; a non-profit attorney can help the organization operate in this manner. A question often asked with regard to non-profit organizations is how much it can pay its directors; a New Mexico non-profit attorney can help you determine an amount of director compensation that is reasonable under the corporation’s circumstances.
Many people involved in business end up forming a partnership at one point or another; in fact partnership can and often are formed without a written agreement. An Albuquerque business law attorney can help you determine if you are a partner of an existing partnership. A Partnership is essentially an agreement whereby the parties to the agreement agree to share the profits and losses associated with a particular venture. Partnerships may or may not offer limited liability for partners of the firm. In some cases a partner will be fully liable for the obligations of the partnership. Thus, it can be important to have a Albuquerque business lawyer review your current business structure and liability exposure.