Early this month, the New Mexico Alcoholic Beverage Control sent an email to holders of the Direct Wine Shipper Permit informing them that registration with the New Mexico Secretary of State is required for corporations doing business in the state. Effective immediately, corporations holding a New Mexico Direct Wine Shipper Permit must submit proof of registration to renew their permit.

The email cited an existing New Mexico law in support of the new requirement. The ABC had not previously required registration with the Secretary of State for direct shipper permits but is now enforcing this requirement. The New Mexico law only applies to corporations. Limited liability companies are not required to register with the Secretary of State.

The new requirement adds significantly to a corporation’s cost of selling wine to New Mexico consumers. While the annual fee for the ABC permit is only $50, the fee for registering a foreign corporation is between $200 and $1,000, depending on what portion of the corporation’s total gross receipts is estimated to come from its New Mexico revenues. In addition, corporations registered with the Secretary of State must maintain an agent for service of process in the state, submit annual reports, and pay New Mexico franchise taxes.

The Digest of Wine and Spirits Law is an essential compliance reference that helps wine and spirits professionals keep up with changes to laws and regulations affecting our industry. Anyone who needs to navigate the requirements for selling and marketing wine and distilled spirits will be benefitted by a subscription to this versatile resource.

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