Obtaining a Certificate of Compliance in New Mexico

Elevate your business credibility in New Mexico – explore the benefits of obtaining a Certificate of Good Standing and navigate our guide to discover the essential steps for ensuring your company's standing is exemplary.

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A New Mexico Certificate of Good Standing (CGS) is confirmation that your corporation is a valid entity; it follows the rules and regulations laid down by the state. A Good Standing and Status Certificate (GSSC) serves the same purpose for a limited liability company (LLC). Obtaining a CGS or GSSC can help your organization grow beyond state borders. With this guide, we’ll help you understand the advantages of a Certificate of Good Standing or Good Standing and Status Certificate, depending on your entity type, and the process of getting one for your business.

What is a New Mexico Certificate of Good Standing?

A New Mexico Certificate of Good Standing is proof that your corporation is in existence and is legally authorized to conduct its operations. It complies with state law. Issued by the Secretary of State (SOS), the certificate confirms that the business is properly registered to do business in the state, and all fees and taxes owed to the state have been duly paid.

A New Mexico Good Standing and Status Certificate confirms all of the above for an LLC.

Which New Mexico office issues Certificates of Good Standing?

The New Mexico SOS issues both a Certificate of Good Standing and a Good Standing and Status Certificate in New Mexico. Depending on the type of business entity, you can request this certificate online or send a request through the mail.

The fee for a CGS also varies depending on the business entity. For example, corporations have to pay a fee of $50, and LLCs have to pay a fee of $25 for a GSSC. For more information on business entities and how they can request a CGS, visit New Mexico’s Business Portal.

Make sure your organization complies with state laws before requesting a CGS or Good Standing and Status Certificate. Noncompliance can cause fines and rejection of your request. Help ensure your entity is in good standing with the worry free compliance services offered by ZenBusiness.

What does a Certificate of Good Standing confirm?

A CGS or a Good Standing and Status Certificate confirms that your corporation or LLC is in existence in New Mexico and that it’s legally authorized to conduct transactions in the state. It also means that state fees and taxes have been paid, and, if you have a corporation, you have filed a biennial report (for for-profit corporations) or an annual report (for nonprofit corporations) with the Secretary of State.

A New Mexico CGS/Good Standing and Status Certificate contains the following information:

  • The legal name of your business
  • The date of formation
  • An authorization under the Business Corporation Act
  • Confirmation that taxes have been paid
  • Confirmation that the entity is in good standing
  • Official seal and signature of New Mexico Secretary of State

Why might a business need a New Mexico Certificate of Good Standing?

Neither the CGS nor the GSSC is mandatory to have for your business to be in compliance. However, they could be necessary in the below scenarios:

Registering to Do Business in Another State

If you want to grow your corporation or LLC beyond state borders, a CGS or Good Standing and Status Certificate will likely be required by the state you’re expanding into.

Securing Funding

Investors looking to put money in your business might require assurance about the legitimacy of your business. A CGS or Good Standing and Status Certificate can provide this assurance, as it confirms your corporation or LLC as a legal entity in New Mexico, complying with state laws.

Opening a Business Bank Account

Having a bank account for your business helps you keep track of your financial transactions better and keep them separate from your personal bank account. Banks might ask for a CGS or Good Standing and Status Certificate before you can open a business account with them.

Buying Business Insurance

Insurance providers might seek proof of compliance before they provide your business and its employees with coverage.

Contract Formation with Other States or Businesses

With time, you may start interacting with other businesses in this interconnected economy and grow your reach to other states. The entities you decide to interact with might ask for a CGS or Good Standing and Status Certificate to verify your organization’s legitimacy.

Selling or Transferring Part or All of the Business

If you plan on selling or transferring a part or all of your business, a buyer might need all details available beforehand. A CGS or Good Standing and Status Certificate confirms your existence in the state. With this information, the buyer can be rest assured they’re dealing with a legal entity.

Renewing Certain Permits and Licenses

A New Mexico CGS or Good Standing and Status Certificate confirms your entity is in good standing with the state. Required reports have been filed, and taxes have been duly paid. With such a certificate in hand, the process of renewing some permits and licenses could become easier.

What New Mexico entities can obtain a CGS?

Entities that register with the New Mexico Secretary of State can obtain a Certificate of Good Standing or Good Standing and Status Certificate. Below is the list of qualifying entities:

LLCs and corporations

New Mexico New Mexico LLCscan obtain a Good Standing and Status Certificate.

Corporations in New Mexico can obtain a CGS.

Entities that don’t need to be registered

General partnerships and sole proprietorships in New Mexico don’t have to register with the New Mexico SOS. As a result, they cannot get a CGS.

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How to get a New Mexico Certificate of Good Standing

You can request a Certificate of Good Standing or GSSC from the New Mexico Secretary of State. The steps for getting them are below:

Make sure your business is in compliance

You can request a CGS or GSSC only if your business complies with state laws. Taxes and fees owed to the SOS have to be paid. There shouldn’t be any outstanding debt. All required licenses should be up to date. For corporations, this also means the biennial/annual report has to be filed within the due date.

If you need a professional eye to look into your corporation’s compliance requirements, then get in touch with ZenBusiness. With our worry free compliance services, we’ll help ensure your business is in good standing.

Request a Certificate of Good Standing

You first need to create an account on the online portal mentioned above before you can request a New Mexico CGS. Use the username and password generated to log in to your account. There are separate tabs present at the top of the screen for different entities. Select the appropriate link for the certificate depending on your entity type.

Search for your entity using either name or ID. Select your entity from the list displayed. Next, select the certificate type, review your request, and pay the fee using a credit card, e-check, or prepaid account.

The steps for obtaining a Good Standing and Status Certificate are similar. Go to the SOS website, download the form, then mail it to the Office of the New Mexico SOS — the address is listed on the form. Include your $25 payment.

Validity of Certificate of Good Standing

A New Mexico CGS or GSSC doesn’t come with an expiration date, but because it’s a snapshot of a business at a particular point in time, most entities requesting one will want a recent one. This usually means within 60 days, although some may be stricter and some may be less strict.

Send to requesting party

If you’ve applied online, the certificate can be downloaded and printed, or you could get the certificate mailed. Once received, you can send the CGS or GSSC to the requesting party.

Conclusion

Compliance may not be simple to keep up with, especially when considering all the other aspects that make a business go round. At ZenBusiness, we understand that your business needs don’t stop after the business has been registered. ZenBusiness can help keep you in good standing with our worry-free compliance service. With this service, we not only help keep your business in compliance, but we can also secure a New Mexico CGS for your corporation or a Good Standing and Status Certificate for your LLC if you need one; you just pay the state fees. And, if you don’t have worry free compliance but still need a CGS or Good Standing and Status Certificate, our Certificate of Good Standing service can help.

Branching out to other states? See pages such as obtaining a certificate of compliance in Texas for information.

New Mexico Certificate of Good Standing FAQs

  • As of 2021, the cost for a New Mexico CGS or GSSC depends on the entity type requesting it:

    Profit corporations: $50
    LLCs: $25
    Nonprofit corporations: $10

  • If you’re submitting a CGS request online, you can get a copy immediately once the fee payment is processed. In case you mailed in your request to the Secretary of State, it might take five to 10 business days to process your request.

  • The New Mexico Secretary of State doesn’t offer any expedited services. You need to ensure your business is in good standing for your request to be approved.

  • A CGS/GSSC isn’t a mandatory document to stay compliant in New Mexico. However, getting a CGS or GSSC can allow your corporation or LLC to do a variety of things, such as expanding to other states.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

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Written by Team ZenBusiness

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