Can I form an LLC in New Mexico if I live in Panama and have never visited the US?

For owners in Panama: yes, entirely remotely. New Mexico does not ask for residency or a trip to the US, and no SSN is required. A registered agent provides the New Mexico address, and the EIN application uses "Foreign" or "N/A" where an SSN would go.

Is there a US-Panama income tax treaty?

No comprehensive income tax treaty is in force. Because Panama does not tax foreign-source income, a treaty is largely unnecessary for foreign business income.

How long does a New Mexico LLC take from Panama?

For owners in Panama: expect a few business days to roughly two weeks for New Mexico to approve the filing, depending on volume. The EIN by phone is usually same-week, so formation, EIN and a submitted bank application commonly take 2-4 weeks in total.

Can a Panamanian resident open Mercury or Relay accounts?

Yes in principle. Panama is not on Mercury's prohibited list (residence-based) or Relay's (owners' citizenship/residency), subject to each bank's own review.

What time can I phone the IRS from Panama?

The IRS international line is open 6 a.m. to 11 p.m. Eastern. Panama is on UTC-5 all year, so the window is 5 a.m. to 10 p.m. in US daylight time and 6 a.m. to 11 p.m. in US standard time.

What ongoing filings does a Panamanian founder need for a New Mexico LLC?

For owners in Panama: the federal Form 5472 and pro forma Form 1120 are due every year ($25,000 minimum penalty if missed). On the state side, New Mexico requires nothing recurring: no annual report and no annual fee, ever.

Does Panama tax income earned through a US LLC?

Panama taxes only Panama-source income. Business profits, dividends, interest and capital gains from activity outside Panama are outside its tax base, so an LLC serving clients abroad generally creates no Panamanian income tax. Panamanian-source income stays taxable.

Form a New Mexico LLC from Panama: Complete 2026 Guide

Everything a Panama-based founder needs to form, bank, and run a New Mexico LLC — costs, EIN process, and tax angles specific to Panama.

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$50 · State filing fee

None - New Mexico requires no an… · Annual fee

3-7 business days · Avg. filing time

Quick Summary

Country: Panama
State: New Mexico
Avg. filing time: 3-7 business days
State filing fee: $50
Annual report fee: None - New Mexico requires no annual report and no franchise tax of any kind for a standard LLC (the only US state offering true zero ongoing state-level filing)

What It Costs

Forming in New Mexico costs $50 in state fees ($50 online where available). Add a registered agent, which every state requires and which typically runs $100-150 a year, a free IRS EIN application, and a US business bank account that is usually free with Mercury or Relay. Ongoing state cost: $0 ever — New Mexico is one of the only states with no ongoing annual report or annual fee for LLCs. EasyBrise's Global Launch plan is $295 for year one including a registered agent, then $149 a year to renew, so most founders in Panama budget well under $500 for the first year, state fee included.

Why New Mexico

New Mexico is a common choice for Panamanian founders who want a US LLC without moving to the US. Filing costs $50 by mail ($50 online where available), and the yearly state obligation is $0 ever — New Mexico is one of the only states with no ongoing annual report or annual fee for LLCs. New Mexico has no tax on LLC income earned outside the state for non-resident owners, which keeps state-level compliance simple, although what Panama does with the LLC's profits is a separate question. On privacy: New Mexico does not publicly disclose member or manager names in its formation records. In short, New Mexico is the only one of the five with no annual filing at all.

Who This State Is For

New Mexico tends to be the right fit if minimizing ongoing paperwork is the top priority — no annual report, ever, is unique among these five states — and strict privacy matters more to you than name recognition. Compare it with the other four states on cost, privacy and reporting before filing; switching states later means dissolving and re-forming rather than a simple amendment.

For Panamanian Founders

Panamanian freelancers, consultants and online sellers form US LLCs to invoice international clients in dollars, hold a US business bank account and present a domestic US vendor to American customers. Panama taxes on a territorial basis, so only income with a Panamanian source is inside its tax base. That makes the country one of the simplest home jurisdictions for a US LLC owner: the questions are mainly about proving the income is foreign-source and about the American filings.

Post Formation Checklist

After your New Mexico LLC and EIN are in place: sign an Operating Agreement (banks and payment processors ask for it even where the state doesn't), skip BOI reporting because FinCEN's rule in force since August 14, 2026 permanently exempts all US-formed LLCs, open the bank account, apply to Stripe or PayPal (each runs its own eligibility review), and put there is no New Mexico annual filing to calendar plus the federal Form 5472 and pro forma 1120 deadline in your calendar.

How The Formation Process Works

The steps are the same for any Panama-based founder: pick a name, file Articles of Organization with the New Mexico Secretary of State (yourself or through your registered agent), appoint a registered agent with a physical New Mexico address, then apply for an EIN. You have no US Social Security Number, so on Form SS-4 you enter "Foreign" or "N/A" in that field. The phone route (267-941-1099, international callers) usually takes 45-60 minutes on the line; fax or mail takes 4-6 weeks. With the EIN in hand you apply for a US business bank account remotely.

New Mexico LLC For Panamanian Founders

New Mexico pairs well with Panama's territorial system: a $50 filing fee, no annual state report and no annual fee, leaving only the federal Form 5472 and pro forma 1120.

Five Year State Cost Of A New Mexico LLC

Over five years, the state-level cost of a New Mexico LLC is a $50 filing fee and nothing recurring, so $50 in total, before the registered agent. That makes New Mexico the cheapest of the five states on this measure. The same arithmetic across the five states runs from $50 to $2,110. For a Panamanian owner, Panama taxes only Panama-source income, so these US costs and the federal filings are the main recurring items, provided your clients and work are outside Panama.

Your Recurring Dates As A Panamanian Owner

As a Panamanian owner, your recurring dates look like this. State: New Mexico adds no state annual filing at all. Federal: Form 5472 with the pro forma Form 1120 is due on the return due date, April 15 for a calendar-year LLC, extendable with Form 7004. For the one-off EIN call, the IRS line (6 a.m. to 11 p.m. Eastern) is open 5 a.m. to 10 p.m. Panamanian time in US daylight time (6 a.m. to 11 p.m. in US standard time). Put the state date and the federal date in your calendar when the EIN arrives, because a missed Form 5472 carries a $25,000 minimum penalty.

Dual Citizenship And The Mercury Relay Rules

Mercury and Relay test eligibility differently, which matters if you hold more than one passport. Mercury's prohibited-countries list is based on country of residence, not citizenship, and a citizen of a listed country who lives elsewhere may still be eligible after review. Relay's list looks at the citizenship or residency of the owners. Panama is on neither list. If you hold another citizenship or live elsewhere, check that country against both lists before you apply.

Law 526 Of 2026 And Why It Does Not Reach You

Panama's Law 526 of May 2026 introduced economic-substance rules for foreign-source passive income. Those rules are entity-level and aimed at Panamanian entities in multinational groups. They do not apply to an individual who personally owns a foreign LLC. It is still worth asking a Panamanian adviser to confirm that your own structure sits outside them, and to keep that confirmation on file, because the law is new.

Panama Territorial Taxation And US Compliance

Under Panama's territorial system, income earned from activity outside Panama, including business profits, dividends, interest and capital gains, sits outside the Panamanian tax base, and there is no controlled-foreign-company regime attributing an LLC's undistributed profit to a Panamanian resident owner. Income with a Panamanian source stays taxable, so the source of each client and each service matters. The compliance that remains is American: the LLC files Form 5472 with a pro forma Form 1120 every year, with a $25,000 minimum penalty for a missed or incomplete filing.

Panama And Paraguay The Two Territorial Systems

Panama and Paraguay are both territorial: foreign-source income is outside the tax base in each. The difference is in the detail you must prove. In Panama the test is whether income has a Panamanian source, so keep contracts and invoices that show clients and services outside the country. In either country the US filings are the same, and the 0% home result does not remove them.

Requirements

Requirement	Needed
US Social Security Number
US visit required
Registered agent with US address
New Mexico annual filing
Federal Form 5472 + pro forma 1120

Costs

Item	Cost
State filing fee	$50 (mail) / $50 (online)
Registered agent (annual)	$100-150/yr (or included in EasyBrise Global Launch)
EIN application	Free via IRS (or via a paid service)
US business bank account	Free (Mercury / Relay)
EasyBrise Global Launch (year 1, incl. registered agent)	$295
EasyBrise renewal (year 2+)	$149/yr

Who Should Choose New Mexico

Choose New Mexico if

minimizing ongoing paperwork is the top priority — no annual report, ever, is unique among these five states — and strict privacy matters more to you than name recognition

Consider another state if

your priorities (fundraising plans, revenue level, or reporting tolerance) point more strongly to one of the other four states in the comparison table above.

Comparison

State	Filing Fee	Annual Requirement	State Income Tax	Privacy
Wyoming	$100 mail / $102 online	$60	None	No public member names
Delaware	$110	$400 flat annual franchise tax	None	No public member names
Texas	$300	$0 franchise tax for LLCs with revenue below the no-tax-due threshold	None	No public member names
New Mexico	$50	$0 ever	None	No public member names
Florida	$125	$138.75 mandatory annual report fee, due every year	None	Member names public

Banking

Mercury
Popular with non-resident founders; requires US LLC + EIN; no US visit needed
Relay
Remote-friendly for non-residents; requires formed US entity

Frequently Asked Questions

More guides for founders in Panama

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