There are multiple ways one can set up a company. A limited liability partnership (LLP), which is a type of business partnership, is one of those ways. This type of business structure is set up in the same way as a general partnership, and consists of two or more owners, known as partners, that share in the profits and the management of the company. Unlike a general partnership, an LLP offers limited liability. Many owners choose this kind of business structure for the limited liability because it means that all of the partners are personally protected from liabilities that the company may incur. This means the partners’ private wealth that is not attached to the company cannot be harmed even the company gets into trouble.
A company can only be an LLP in New Mexico if it meets certain requirements set forth by the New Mexico Secretary of State and the New Mexico Uniform Partnership Act. As previously stated, an LLP must have at least 2 partners. It must also have either an office in New Mexico or a registered agent for service of process who is willing to receive official documents on behalf of the company. The agent can be either a New Mexico resident or a business entity that is registered to do business in the state. Any company seeking to become an LLP must also file the correct paperwork with the New Mexico Secretary of State, obtain liability insurance, and select a name that ends with “RLLP”, “LLP”, “R.L.L.P.”, “L.L.P.”, “Registered Limited Liability Partnership,” or “Limited Liability Partnership.”
A company cannot become an LLP in New Mexico until it files certain paperwork with the Partnership Unit of the Office of the New Mexico Secretary of State, which it must file via the mail. To make the process easier, the Office of the New Mexico Secretary of State provides standard forms for the necessary paperwork. If the company is registering as an LLP for the first time in New Mexico, then it is a domestic LLP and will need to file a Statement of Qualification for New Mexico Limited Liability Partnerships. However, if the company has already been registered in another state as an LLP, then it must file a Statement of Qualification for Foreign Limited Liability Partnership because it is a foreign LLP. Both types of forms will require you to provide the following information:
- The name of the LLP
- The street address of the LLP’s chief executive office
- Either the street address for any office that the LLP may have in New Mexico or the name and address for the LLP’s registered agent
If you do not want the paperwork to become effective right away, you can also include a date on which the paperwork will become effective. You will also need to indicate on the form that you intend for your company to be an LLP and have two of the LLP’s partners sign the form.
New Mexico is committed to helping companies expand in the state and offers several programs to help companies get started and grow. One such program is the Collateral Support Participation Program, which provides funds to New Mexico-based for-profit companies that need capital to grow.
Any LLP that is registered in New Mexico is required to file an annual report at some point during the first three months of every year. Failing to do this may result in the company losing its status as an LLP because the Secretary of State may choose to revoke the delinquent company’s Statement of Qualification.
Creating a company, especially one that has limited liability, is never easy, and there are a lot of legal requirements to which your company must adhere. If you are going to form an LLP in New Mexico, you should speak with a New Mexico business lawyer. They can help you fill out all of the necessary paperwork and explain all of the laws that apply to your company.