Incorporating a New Mexico LLC for Filipino Remote Workers
Filipino freelancers can form a New Mexico LLC to provide services to international clients while maintaining a distinct legal entity. This structure allows for the separation of business assets from personal finances.
The process involves state registration, obtaining an EIN from the IRS, and opening a business bank account through Mercury. Compliance with both US federal reporting and Philippine BIR regulations is required.
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 with no US-based employees or physical office are generally not considered Engaged in Trade or Business in the US (ETBUS), resulting in no federal income tax on non-US source income.
BIR Revenue Regulation 8-2018; freelance registration
Use New Mexico for low formation costs, but ensure you maintain strict separation between personal and business funds to preserve your limited liability status.
- 01Form 5472 and 1120 filing requirement for foreign-owned domestic LLCs
- 02Potential $25,000 penalty for failure to file Form 5472
- 03BIR compliance for PH-based income reporting under RR 8-2018
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.