New Mexico LLC vs Texas LLC (2026)
Written for owners based in New Mexico.
Verdict: for most owners, form where the business is based
Texas costs $300 to form, among the highest flat formation fees anywhere, and then nothing recurring to the Secretary of State. The catch is that nothing owed is not nothing filed: the Public Information Report goes to the Comptroller by May 15 even when total revenue sits under the $2,650,000 no-tax-due threshold, and skipping it starts the path to tax forfeiture. New Mexico requires no annual filing of any kind. Formation is $50 here, and a Texas LLC operated from New Mexico pays $100 to register, against the $750 Texas charges the other way.
Based in Texas? Read Texas LLC vs New Mexico LLC →
Compare New Mexico LLC vs Texas LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
By Edmond Hui · Last updated: September 23, 2026
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| Factor | New Mexico | Texas |
|---|---|---|
| Filing Fee | $50 | $300 |
| Processing Time | Not published by the state | Not published by the state |
| Annual Report Fee | None | $0 |
| Annual Report Due | None required | May 15 |
| State Income Tax | Yes | No |
| Anonymous LLC | Yes | No |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $100 + registered agent ~$150/yr |
Full fee breakdown for either state: New Mexico LLC cost and Texas LLC cost. Owner privacy options for either state: New Mexico anonymous LLC guide and Texas anonymous LLC guide.
Business Climate: New Mexico vs Texas
| Factor | New Mexico | Texas |
|---|---|---|
| 5-year business survival rate | 46.3% (#46 of 51) | 52.5% (#20 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +12.6% YoY (#37 of 51 by volume) | +13.7% YoY (#3 of 51 by volume) |
Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)
Compare LLC Costs: New Mexico vs Texas
New Mexico
Texas
A figure shown as "from" is the least the state can charge, not a price. Tennessee's report is $300 for up to six members and $50 for each member above six, its franchise tax is the greater of $100 or 0.25% of Tennessee net worth, Wyoming's report is the greater of $60 or $.0002 per dollar of in-state assets, Kentucky's entity tax is $175 up to $3 million of gross receipts and graduated above it, and New York's annual filing fee is graduated on New York source gross income. A total that contains one of those is shown as "from" for the same reason. Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where the state publishes a rate for it, and any one-time registration charge a state requires before the LLC may trade. Two exclusions follow from that wording. Arizona and Nebraska require publication and publish no rate, so no newspaper cost is carried for either and their totals are not the whole cost. Alaska's $50 annual state business licence is a separate charge from the Secretary of State fees and is not carried here either. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.
Filing Fees & Formation Costs
New Mexico charges $50 to form an LLC, while Texas charges $300. New Mexico is $250 cheaper upfront. The cost that usually gets overlooked: if you form in Texas but operate in New Mexico, you must also register as a foreign LLC in New Mexico (a $100 filing) and maintain a registered agent in Texas (typically around $150 per year). That puts the realistic first-year cost of the Texas route at roughly $550, versus $50 for simply forming in New Mexico. Speed isn't a basis for choosing between them: neither New Mexico nor Texas publishes a standard processing time, so any figure comparing the two is guesswork.
Taxes: New Mexico vs Texas
Texas has no personal income tax while New Mexico does, but forming your LLC in Texas won't change that. LLC profits pass through to you and are taxed where you live and operate (in New Mexico), not where the LLC is registered, so a Texas LLC offers no income-tax savings for a New Mexico-based business. Texas imposes a franchise tax; LLCs under the no-tax-due threshold ($2,650,000 total revenue for 2026-27 reports) owe $0 but must still file an annual Public Information Report.
Privacy & Asset Protection
New Mexico, your home state, actually offers more formation privacy than Texas: New Mexico allows anonymous LLC formation, while Texas requires owner or manager information on public filings. The Certificate of Formation (Form 205) must name at least one governing person (member or manager), a public record; the annual Public Information Report also discloses management. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal. From a privacy standpoint there's no reason for a New Mexico-based business to form in Texas.
Annual Maintenance Costs
New Mexico LLCs file no annual report at all, and Texas LLCs file a free annual report (due May 15). If you form in Texas while operating in New Mexico, you maintain filings in both states, Texas's report, though New Mexico asks for nothing on the foreign-registration side, and pay a Texas registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the Texas route to roughly $150 a year, versus about $0 to keep a domestic New Mexico LLC in good standing. The tax inside those totals: Texas imposes a franchise tax; LLCs under the no-tax-due threshold ($2,650,000 total revenue for 2026-27 reports) owe $0 but must still file an annual Public Information Report.
When Texas Actually Makes Sense
Forming in Texas makes sense in a few specific situations: your business genuinely operates in Texas, with a real office, employees, or property there, or you're relocating to Texas in the near future, which would also move you out of New Mexico's personal income tax. For a typical small business based in New Mexico, none of these usually apply. Registering a Texas LLC to do business back home means $100 in New Mexico foreign-registration fees, on top of Texas's $300 formation fee, while New Mexico itself never asks for an annual report at all. New Mexico already allows anonymous formation, so the privacy argument for Texas doesn't apply to a New Mexico-based owner. Trading New Mexico's no-annual-report status for Texas's filing calendar is a step backwards for most owners. When in doubt, form where you actually do business.
Frequently Asked Questions
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Compare LLC formation services →Or by state: Best LLC services in New Mexico, Best LLC services in Texas
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Start your LLC with ZenBusiness →Affiliate link. We may earn a commission at no cost to you. MyStateLLC is not a law firm and does not provide legal advice.
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Sources
Each entry below is a document recorded in our verified sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so.
- sos.nm.gov/business-services/New Mexico Secretary of State: business entity filings
- sos.state.tx.us/corp/index.shtmlTexas Secretary of State: business entity filings
- direct.sos.state.tx.us/help/help-corp.asp?pg=feeTexas LLC filing fees
Edmond Hui · Founder, MyStateLLC
Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.