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Is New Mexico the best state for foreign LLC formation?

Is Santa Fe the best state for foreign LLC formation

Is Santa Fe, New Mexico really the top location for foreign LLC formation?

Santa Fe in New Mexico is often cited as an attractive place to start a business. Limited Liability Company (LLC) for foreigners. But is that really true? Let's take a closer look at the pros and cons.

Advantages of forming an LLC in Santa Fe

New Mexico, and the capital Santa Fe in particular, does indeed offer some interesting advantages for foreign entrepreneurs:

  1. Tax advantage: New Mexico levies neither corporate income tax nor Franchise Tax on LLCs. The tax burden is limited to relatively low annual fees of $50.
  2. Simple administration: The bureaucratic effort involved in managing an LLC in New Mexico is relatively low compared to other states. For example, no annual shareholders' meetings need to be held.
  3. Legal protection: LLCs in New Mexico benefit from strong creditor protection. The personal liability of the shareholders is limited.
  4. Infrastructure: Santa Fe offers a good infrastructure and an attractive environment that can appeal to foreigners who want to set up their business.

Disadvantages and risks

(However, whether these aspects are seen as disadvantages or advantages is up to the individual).

Despite these advantages, there are also some aspects to consider when forming an LLC in Santa Fe:

  1. Limited range: An LLC registered only in New Mexico may have difficulty contracting or opening bank accounts outside the state.
  2. Lack of Anonymity: Compared to particularly discrete locations such as Wyoming relatively more personal information about the shareholders. This can deter foreigners.
  3. Legal uncertainty: The legal system in New Mexico is considered by some to be less predictable and stable than in other US states.

Comparison table

Comparison table: Start-up prices, running costs and ancillary services in tax-free US states (prices in USD)

Cost comparison in (USD) Chart

Here are the standard fees that normally apply. Special cases and additional services are not listed

Conclusion

Careful examination required Santa Fe in New Mexico offers attractive conditions for foreign LLC formations, particularly due to the favorable taxes and simple administration. However, entrepreneurs should also be aware of the potential drawbacks. In some cases, a location like Delaware or Nevada may be more suitable. A detailed analysis of individual needs is always advisable before deciding on a location.

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Disclaimer: Please note that the above dates, tax rates and regulations may change over time. Do not make any independent decisions without first consulting an expert for your individual situation. It is in your interest to always receive individual information from an experienced expert who knows your situation.

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