Washington LLC vs New Mexico LLC (2026)

Business Climate: Washington vs New Mexico

Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)

See the full 50-state survival ranking.

Compare LLC Costs: Washington vs New Mexico

Filing Fees & Formation Costs

Washington charges $180 to form an LLC, while New Mexico charges $50. New Mexico is $130 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 $200 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 $400, versus $180 for simply forming in Washington. Only one side of this comparison is knowable: Washington publishes 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, while New Mexico taxes individual income. Since pass-through LLC profits are taxed where you live and operate, a Washington-based owner keeps Washington's no-income-tax benefit 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's report plus Washington's equivalent for your foreign registration, and pay a New Mexico registered agent roughly $150 per year. That brings ongoing costs of the New Mexico route to roughly $220 per year, versus about $70 to keep a domestic Washington LLC in good standing. One more recurring cost to budget for: 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. For a typical small business based in Washington, none of these usually apply. Registering a New Mexico LLC to do business back home means $200 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.

More State Comparisons