How do businesses close a company properly with the state?

How to Properly Close a Business in New Mexico

Closing a business in New Mexico requires completing specific steps with the state to ensure proper dissolution and avoid future liabilities. Follow this operational guide to close your company efficiently.

Step 1: File Articles of Dissolution

As of 2026, businesses registered with the New Mexico Secretary of State must file Articles of Dissolution to officially dissolve the company. This applies to corporations, LLCs, and limited partnerships.

• Access the New Mexico Secretary of State’s online portal or submit a paper form.
• Provide the business name, identification number, and confirmation of proper authorization to dissolve.
• Pay any required filing fees as listed on the Secretary of State website.

Step 2: Settle Financial Obligations

Before dissolution, ensure all financial obligations are addressed:

• Complete final payroll and file final payroll tax returns with the New Mexico Taxation and Revenue Department.
• Pay all outstanding state taxes, including gross receipts tax and withholding taxes.
• Close any business bank accounts after all transactions have cleared.
• Notify creditors and settle debts or outstanding contracts.

Step 3: Cancel Licenses and Permits

Cancel any active business licenses, permits, and registrations with New Mexico state and local agencies to avoid ongoing fees or penalties.

• Check with the New Mexico Regulation and Licensing Department for professional or trade licenses.
• Cancel any sales tax permits with the Taxation and Revenue Department.

Step 4: Notify Employees and Handle Final Payroll

If your business has employees, you must:

• Provide required final wage payments according to New Mexico labor laws.
• Issue final paychecks including accrued vacation or benefits if applicable.
• File final employment tax returns and provide employees with necessary tax forms (e.g., W-2s).

Step 5: Maintain Records

Keep copies of dissolution documents, tax filings, payroll records, and financial statements for at least several years as required by state and federal guidelines. Proper recordkeeping supports future audits or inquiries.

Additional Operational Considerations

• Consult with your accountant or business advisor to confirm all tax filings and financial closures are complete.
• Update your bookkeeping and accounting systems to reflect the business closure.
• Consider automating final reporting tasks to reduce errors and streamline compliance.