New Mexico LLC Form 5472 filing guide
New Mexico LLCs are free to form and have no annual report. But foreign-owned NM single-member LLCs still owe Form 5472 to the IRS. Here's how the state's no-fee advantage interacts with the federal obligation.
New Mexico is the only US state with no annual report and no annual fee for LLCs — making it attractive for foreign founders who want the lowest ongoing maintenance cost. But a New Mexico LLC with a foreign owner still owes Form 5472 to the IRS each year. The state's zero-fee policy applies at the state level; the federal filing obligation under IRC §6038A applies everywhere.
Why New Mexico attracts foreign founders
- No annual report. Unlike Wyoming ($60/yr) or Delaware ($300/yr), New Mexico doesn't require annual filings or fees with the Secretary of State.
- Low formation cost. The Articles of Organization filing fee is around $50 — one-time, no ongoing state cost.
- Privacy. New Mexico doesn't require member information in public filings.
- No state income tax on out-of-state income. A New Mexico LLC with no New Mexico-source activity owes no NM income tax.
What the state saving doesn't eliminate — Form 5472
Form 5472 is a federal IRS obligation. State of formation is irrelevant. A New Mexico LLC with a foreign owner is in exactly the same position as a Wyoming or Delaware LLC for Form 5472 purposes:
- Required if: the LLC had any reportable transaction with a related party. The initial capital you deposited to open the bank account qualifies.
- Filed with: IRS, not New Mexico. Fax to the Ogden PIN Unit at +1-855-887-7737.
- Deadline: April 15 (October 15 with Form 7004 extension).
- Penalty: $25,000 per form per year for failure to file (IRS, IRC §6038A).
- Required even with $0 revenue. See the no-revenue rule.
Total annual cost comparison for foreign founders
| State | Formation fee | Annual state cost | Form 5472 (federal) |
|---|---|---|---|
| New Mexico | ~$50 | $0 (no annual report) | $89 via Snapfile |
| Wyoming | ~$102 | $60 minimum annual report | $89 via Snapfile |
| Delaware | ~$90 | $300 franchise tax | $89 via Snapfile |
One gotcha: no annual report means no reminder
With Wyoming and Delaware, the annual report filing is a natural reminder that your LLC is still active and needs upkeep. New Mexico sends no such reminder — because there's nothing to file. This makes it easier to accidentally forget the federal Form 5472 filing. Set a calendar reminder for March 31 each year: "File Form 5472 by April 15."
Conservative summary
- New Mexico LLC = no annual state report, no annual state fee. Best lowest-cost state.
- Form 5472 (federal) still due by April 15 every year — same as any state.
- Set a manual reminder since there's no state filing to jog your memory.
- Snapfile files your Form 5472 for $89 — fax to IRS Ogden included.
- Missed years? DIIRSP catch-up guide.
Ready to file?
Snapfile prepares your Form 5472 + pro forma 1120 from 12 questions, faxes it to the IRS, and emails you the receipt. $89 all in.