Washington LLC vs New Mexico LLC (2026)
Written for owners based in Washington.
Verdict: for most owners, form where the business is based
New Mexico requires no annual or biennial report at all, so a $50 formation fee can be the whole state bill, against $270 in Washington's first year and $70 every year after. The absence of a report is also the exposure: nothing arrives to prompt you, and an LLC that quietly loses its registered agent can be administratively revoked under New Mexico law. New Mexico's $50 franchise tax reaches only an LLC that has elected corporate treatment, and member names stay off the record either way. A New Mexico LLC pays $200 to be registered in Washington.
Based in New Mexico? Read New Mexico LLC vs Washington LLC →
Compare Washington LLC vs New Mexico 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: October 5, 2026
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| Factor | Washington | New Mexico |
|---|---|---|
| Filing Fee | $180 by mail, $200 online ($20 online surcharge) | $50 |
| Processing Time | Within 15 business days (paper) | Not published by the state |
| Annual Report Fee | $70 | None |
| Annual Report Due | Last day of anniversary month | None required |
| State Income Tax | None through 2027; 9.90% above $1M from 2028 | Yes |
| Anonymous LLC | No | Yes |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $180 + registered agent ~$150/yr |
Full fee breakdown for either state: Washington LLC cost and New Mexico LLC cost. Owner privacy options for either state: Washington anonymous LLC guide and New Mexico anonymous LLC guide.
Business Climate: Washington vs New Mexico
| Factor | Washington | New Mexico |
|---|---|---|
| 5-year business survival rate | 42.2% (#51 of 51) | 46.3% (#46 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | -25.5% YoY (#15 of 51 by volume) | +12.6% YoY (#37 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: Washington vs New Mexico
Washington
New Mexico
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
Washington charges $200 to form an LLC, while New Mexico charges $50. New Mexico is $150 cheaper upfront. The cost that usually gets overlooked: if you form in New Mexico but operate in Washington, you must also register as a foreign LLC in Washington (a $180 minimum filing) and maintain a registered agent in New Mexico (typically around $150 per year). That puts the realistic first-year cost of the New Mexico route at roughly $380, versus $200 for simply forming in Washington. Only one side of this comparison is knowable: Washington publishes a standard turnaround (within 15 business days, paper), while New Mexico publishes no standard processing time, so the two can't be ranked against each other on speed.
Taxes: Washington vs New Mexico
Washington has no personal income tax through 2027 (from 2028 it taxes individuals at 9.90% on income above a $1,000,000 standard deduction), while New Mexico taxes individual income. Since pass-through LLC profits are taxed where you live and operate, a Washington-based owner gets the same Washington income-tax treatment either way. Forming in New Mexico adds no tax advantage. Washington imposes the Business & Occupation (B&O) tax on gross receipts.
Privacy & Asset Protection
New Mexico allows anonymous LLC formation. Member and manager names don't appear on routine public filings. New Mexico's Articles of Organization require only the organizer and registered agent, and LLCs file no annual report, so members and managers stay off public filings. Washington doesn't offer that same privacy. Washington's report records the LLC's governors (members/managers) on the public record. 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. One important caveat: if you register your New Mexico LLC as a foreign LLC in Washington, that Washington registration is itself a public record, which can undercut much of the privacy benefit for a business that operates in Washington.
Annual Maintenance Costs
Washington LLCs file an annual report ($70, due in the anniversary month), and New Mexico LLCs file no annual report at all. If you form in New Mexico while operating in Washington, you maintain filings in both states, New Mexico asks for no report, but Washington still wants its equivalent for your foreign registration, and pay a New Mexico registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the New Mexico route to roughly $220 a year, versus about $70 to keep a domestic Washington LLC in good standing. The tax inside those totals: Washington imposes the Business & Occupation (B&O) tax on gross receipts.
When New Mexico Actually Makes Sense
Forming in New Mexico makes sense in a few specific situations: you need anonymous ownership. Washington puts owner or manager information on public filings and New Mexico doesn't (usually via a holding company, since operating in Washington still requires a public foreign registration there), your business genuinely operates in New Mexico, with a real office, employees, or property there, or you're relocating to New Mexico in the near future and accept taking on New Mexico's personal income tax, which Washington doesn't levy through 2027 (from 2028 it taxes individuals at 9.90% on income above a $1,000,000 standard deduction). For a typical small business based in Washington, none of these usually apply. Registering a New Mexico LLC to do business back home means at least $180 in Washington foreign-registration fees, on top of New Mexico's $50 formation fee, while Washington's own annual report runs $70 a year and is due in the anniversary month. When in doubt, form where you actually do business.
Frequently Asked Questions
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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. Where we hold the citation but no stable public link, the citation is printed on its own rather than pointed at a guessed address.
- New Mexico statute: NMSA 1978 Section 53-19-66.1 (administrative revocation)
- sos.wa.gov/corporations-charities/business-entities/limited-liability-company-llc-professional-llc-pllc-filing-resource-pageWashington Secretary of State: business entity filings
- sos.wa.gov/corporations-charities/frequently-asked-questions-faqs/fee-scheduleexpedited-serviceWashington LLC filing fees
- sos.nm.gov/business-services/New Mexico Secretary of State: business entity filings
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.