Business Registered Agent

[watergirl2]

My business uses NM register agent.

My address is in Az

Last year I file NM state taxes. I had no income

I am now wondering if this was correct and should do the same this year. 

It is an online business with no physical presence on either state. 

Which state should I buy should I use?

Thank you

[ErnieS0]

Are you an individual or a business?

Individual

Nonresidents do not have to file a New Mexico return if they receive no income from New Mexico sources.

Business

A corporation that has, or exercises, its corporate franchise in New Mexico is subject to the Franchise Tax, even if the corporation is not actively engaging in business in New Mexico or owes no New Mexico Corporate Income Tax. Taxpayers must use form CIT-1, Corporate Income and Franchise Tax Return to report the $50 annual Franchise Tax.

See: Corporate Income & Franchise Tax Overview

[watergirl2]

It is a business Multimember LLC registered in NM via a NM register agent

it is just two of us: Husband and wife

I pay the yearly fee already via the registered service agent in NM. For the year income do I have to file at all if there was no income?

Thank you

[ZoltanB45]

You do not need to file NM if you have paid the fee, but file the 1065 if you have in the past.

If you fail to file for a few years, some states will dissolve the business on it's own. Since you are paying the minimum franchise tax, they would not dissolve you for not filing the state return.

[watergirl2]

I am actually dissolving the LLC with this return. On the federal, there is a check box for "is this the final return" I am saying yes

Do I need to buy the NM return to do the same?

I have already processed the articles with NM department of State via my registered agent. 

If I don't have to buy and include the NM state that would be great. 

[PatriciaV]

If you have filed dissolution with the State of New Mexico, are current with paying franchise tax fees, and have no NM income for the tax year, you are not required to file a final state income tax return.

As @ZoltanB45 said, you are required to file a final Federal Form 1065 Partnership return for the final tax year, even if you had no income.

[watergirl2]

Here is why I am unsure

I am dissolving with my 2021 taxes. 

So for the state 2021 taxes do I have to file with the state to pay for the franchise tax fee for that year?

I processed the dissolution docs via the NM register agent some weeks ago but in 2022. 

Thank you

[ZoltanB45]

If you closed all accounts associated with the business in 2021, you would be able to have the 2021 return as your final return. Some states require filing the dissolution articles prior to filing the final tax return and some send you the articles after filing the final return.  According to the FYI-350 , you have to pay the franchise tax every year you file a return.

[watergirl2]

My last return using turbo tax said:

--------------------------------------------------------------------------------
No payment is required with your New Mexico Form PTE.
Mail your return to the following address on or before March 15, 2021:

This year it will probably said the same.

Does this mean the franchise tax was included but not payment was needed since I had more expenses than income?

[ZoltanB45 · Accepted solution]

If you look at page 4 of the FYI it says the NM Corporate Income Tax is based on net income, so if you lost money you wouldn't pay that tax.

There is a $50 Franchise Tax each year that must be paid regardless of profit. 

The franchise tax is separate from the personal income tax. Here is a link to create a NM login and where you will be able to submit a payment.

[watergirl2]

Thank you

This was very helpful. I didn't know this so I hope that NM allows me to pay for the previous year as well

Appreciate it

WG