GetSmartPromo
Compare jurisdictions
US LLC (New Mexico) · via doola·🇮🇳Founder profile

New Mexico LLC via doola — Indian Freelance Developers

VerifiedJul 2026
EligibilityEligible
Setup timeline14–28days
Year-1 total$297.00

New Mexico is the cheapest US LLC state on annual carrying cost: no franchise tax, no annual report requirement, only the registered agent fee ($99/year on doola). For solo Indian freelancers who plan to keep the LLC dormant between projects, New Mexico saves ~$60-300 per year vs Wyoming or Delaware.

US tax: LLC pays $0 federal tax when non-ETBUS with no effectively connected income. Form 5472 + pro-forma 1120 mandatory yearly under IRC §6038A; $25,000 penalty. No state filings on New Mexico for LLCs — a clear administrative win.

India side: Schedule FA disclosure on ITR-2 mandatory; LRS $250k/year outbound cap unchanged.

§ 01Cost of ownership

Model the full outlay, not just the setup fee

Renewal costs sneak up on non-resident founders. Compare year-1 filing against a 3-year total to see the real bill.
Currency · USD (live FX)
2-year cost of ownership
$594.00
$24.75/month amortized·USD @ live FX
Time horizon
Line items
Amount
  • Setupdoola setup
    $297.00
  • AnnualYear 2 renewal
    $297.00
Total$594.00
§ 02Tax residency · Indian Freelance Developers

What the tax authority sees

US federal / local status

A New Mexico LLC held by an Indian resident owes no US federal tax when non-ETBUS with no effectively connected income; Form 5472 (IRC §6038A) mandatory yearly with $0 annual state reporting fee.

Home-country rule

Section 44ADA presumptive taxation; foreign-source income rules

Editorial verdict

New Mexico LLC is the cheapest US state — no annual report, no franchise tax; only registered agent recurring cost.

Key compliance risks
  • 01Form 5472 penalty $25,000 per year (IRC §6038A)
  • 02New Mexico banking partners less common; Mercury still supports NM entities
  • 03Schedule FA on ITR-2 mandatory; Black Money Act penalty INR 10 lakh
  • 04LRS aggregate USD 250,000 per financial year outbound cap
§ 03Setup timeline

From filing to funded bank account

Setup timeline
14–28days total, 3 phases
Milestone check
Filing · Tax ID · Banking
d0
d7
d14
d21
d28
01Filingdoola submits formation docs
d0–d10
02Tax ID / EINIRS EIN issuance
d8–d21
03BankingBusiness account approved & funded
d17–d28
§ 04Head-to-head

US LLC (New Mexico) vs Estonia OÜ (e-Residency)

US LLC (New Mexico)
LLC
Estonia OÜ (e-Residency)
Entity
LLC
Setup cost
$50.00
$205.20
Annual
$0.00
$129.60
Local director
Remote OK
Remote OK
Physical presence
Remote OK
Remote OK
Tax regime
No annual report; federal only on US-source income
20% only on distributed profit; 0% on retained earnings
§ 05Questions founders actually ask

FAQ

New Mexico has no annual report requirement and no franchise tax; only the registered agent fee. Wyoming requires a $60/year state report. Over 5 years New Mexico saves $300+ vs Wyoming. Downside: less brand recognition with US buyers, but Mercury and Stripe accept NM LLCs identically.

Next step

Start filing with doola

Formation typically completes in 2–3 weeks. Use the promo below, then click through to begin the checklist directly on the platform.