--- title: "Set Up a Company in New Mexico" description: "Learn how to register a company in New Mexico, the fees and taxes involved, and how Teamed's EOR lets you hire without forming one first." canonical: https://www.teamed.global/country-hiring-guides/united-states/new-mexico/entity-setup --- ![New Mexico business district.](/cluster-assets/country-hiring-guides/united-states/new-mexico/entity-setup/images/hero.webp) # How do you set upa company in New Mexico. Teamed forms your New Mexico entity or employs your team under its own registration, so you can hire fast without founding a company first. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · New Mexico guide At a glance ## New Mexico entity setup at a glance New Mexico charges a flat 4.8% corporate income tax and a flat minimum franchise tax of $50 once you have an entity on the books. The Secretary of State's formation and registration fee is $50, and Teamed can employ your team here immediately if you'd rather skip that filing. Corporate income tax4.8% Minimum franchise tax$50 Franchise tax basisflat Formation / registration fee$50 Forming the entity ## How you register a business in New Mexico Setting up a legal entity in New Mexico starts with filing formation documents with the New Mexico Secretary of State, which carries a registration fee of $50. You will also need a registered agent with a New Mexico address, a federal EIN, and separate registration with the Taxation and Revenue Department before you can run payroll. None of that is difficult on its own, but it adds up to a real project when all you actually want to do is hire one person in Albuquerque or Santa Fe. Teamed handles the formation work for you, or employs your worker under its own New Mexico registration so you skip the filing entirely. Ongoing tax obligations ## What New Mexico taxes your entity once it is running Once your entity exists, New Mexico applies a corporate income tax of 4.8% to its earnings. Separately, the state levies a minimum franchise tax of $50, charged as a flat amount rather than scaled to revenue or payroll size. These aren't the only obligations you'll manage. You still need to register for state withholding and unemployment insurance before your first paycheck goes out, and those registrations sit alongside the corporate tax filings, not instead of them. Payroll and compliance ## Running payroll and staying compliant in New Mexico Once the entity and tax registrations are in place, you still need to run compliant payroll every cycle, correctly withhold and remit, and keep up with New Mexico employment law as it applies to your team. That's ongoing work, not a one-time setup task. This is where a lot of small teams get stuck, not on the initial filing but on keeping it running correctly month after month. Teamed's employer of record model absorbs that ongoing compliance work so you never have to build an HR or payroll function just to employ one or two people in the state. Before you commit ## Sometimes an employer of record is the better fit For a small or still-forming team in New Mexico, or while you're testing the market before committing, an employer of record is often the smarter choice, not a lesser one. Talk to a member of the team about your specific situation, or run the numbers yourself in the crossover calculator, since the right answer depends on salaries and how long you plan to stay. Contractors, employer of record and your own entity all run on one platform at Teamed, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work rather than a ticket queue. Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it on local salaries and employer costs rather than on a headcount rule of thumb. Talk to a member of the team Model the crossover for the United States Who carries it ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. Global Entity and Employment Operations, which we call GEMO, is how Teamed forms your company, registers it for tax and payroll, runs it month to month and keeps its filings current, across 100+ countries. You stay the employer. We do the work behind it. In New Mexico, that means Teamed can start you on our employer of record setup right away. Later, we form your Articles of Incorporation or Organization, register with the Taxation and Revenue Department, and transfer your employees onto your own entity once it makes sense, all without a gap in employment or payroll. Global Entity and Employment Operations, which we call GEMO, is Teamed's structure for making that switch smooth, and it works the same way across our 100+ countries, not just New Mexico. Entity Management (GEMO) The Graduation Model Employer cost calculator > They set up our EU entity and moved hires across without missing a payroll. *Helene Dubois, COO* Talk to an expert about New Mexico Questions ## New Mexico entity setup questions What does it cost to register a company in New Mexico? The New Mexico Secretary of State charges a $50 formation and registration fee. Once formed, your entity also owes a flat minimum franchise tax of $50 and is subject to a 4.8% corporate income tax on its earnings. Does New Mexico have a franchise tax? Yes, New Mexico applies a minimum franchise tax on a flat basis rather than scaling it to revenue. The minimum amount is $50, and it applies alongside the state's 4.8% corporate income tax. Can I hire someone in New Mexico without forming a company there first? Yes. An employer of record like Teamed can employ your worker under its own New Mexico registration, so you avoid the formation fee, franchise tax filing, and payroll registrations entirely while you get started. When should I set up my own entity in New Mexico instead of using an EOR? It depends on your headcount, salary levels, and how long you plan to keep people in the state, so there's no fixed answer. Run your numbers through the crossover calculator or talk to a member of the team to see where you land. What happens to my New Mexico team if I move from an EOR to my own entity later? Teamed's GEMO process forms the entity, handles the Secretary of State and tax registrations, and migrates your employees across without a break in employment or payroll. You end up owning a fully compliant New Mexico entity, not a partial setup you have to finish yourself. Where these figures come from ## Sources The figures on this page come from the New Mexico Taxation and Revenue Department and the New Mexico Secretary of State - business services. ## More on entities in New Mexico - [Hiring in New Mexico, overview](/country-hiring-guides/united-states/new-mexico)parent - [New Mexico running costs](/country-hiring-guides/united-states/new-mexico/entity-running-costs-and-filings)sibling - [New Mexico tax presence](/country-hiring-guides/united-states/new-mexico/permanent-establishment-risk)sibling - [New Mexico entity or eor](/country-hiring-guides/united-states/new-mexico/eor-vs-entity)sibling - [New Mexico moving from an eor](/country-hiring-guides/united-states/new-mexico/moving-from-eor-to-your-own-entity)sibling - [Set up an entity, by country](/entity-setup-by-country)hub - [Entity Management (GEMO)](/entity-management)core - [Talk to an expert about New Mexico](https://www.teamed.global/contact?from=entity-setup)CTA