Forming a New Mexico LLC for Chinese Cross-Border Founders
New Mexico offers a streamlined incorporation process for non-US residents due to the absence of annual reporting requirements. This structure allows Chinese founders to establish a US legal entity while managing operations remotely.
Founders must balance US federal tax compliance with PRC reporting obligations, specifically regarding foreign investment and individual income tax residency.
Model the full outlay, not just the setup fee
- SetupMercury (banking-only) setup$0.00
- AnnualYear 2 renewal$0.00
What the tax authority sees
New Mexico LLCs are treated as pass-through entities for US federal tax purposes, meaning non-US owners are subject to US tax only on income effectively connected with a US trade or business (ETBUS).
PRC individual foreign income tax (Bulletin 3, 2020) applies to worldwide income for tax residents; SAFE Circular 37 must be filed for outbound investment structures.
New Mexico is ideal for privacy-focused founders; ensure you maintain a registered agent and comply with PRC SAFE Circular 37 registration requirements for outbound investments.
- 01Form 5472/5476 filing required for foreign-owned US LLCs; failure to file carries a $25,000 penalty.
- 02PRC Bulletin 3 (2020) requires reporting of worldwide income for Chinese tax residents.
- 03Failure to file SAFE Circular 37 may restrict future capital repatriation or dividend payments.
From filing to funded bank account
US LLC (New Mexico) vs Estonia OÜ (e-Residency)
FAQ
Start filing with Mercury (banking-only)
Formation typically completes in 2–3 weeks. Use the promo below, then click through to begin the checklist directly on the platform.