Starting a business in New Mexico will mean potentially registering with a number of federal, state and local agencies. Let’s take a look at common licenses and permits a business will register for in New Mexico.
Business License – There is no general state of New Mexico business license, however many cities require businesses to be licensed in order to operate. Rules for business registration vary depending on location and what the business does. Below are a few cities that have licensing requirements.
Albuquerque – All businesses operating in the city limits will need an Albuquerque business license from the Business Registration Section of the Planning Department.
The cost of an Albuquerque business license is $35.
Las Cruces – The City of Las Cruces requires business with a physical location operating within city limits to register. This includes both commercial business and home-based businesses.
Rio Rancho – All businesses need to register with the City of Rio Rancho, whether they operate in a commercial location or as a home-based business.
Santa Fe – A Santa Fe Business License is needed for businesses located within City limits or doing business in the City. The two most common business licenses are either the Standard Commercial Business License or Home-based Business License.
Roswell – All businesses operating within the city limits of Roswell need to register with the Business Registration Office and pay an occupation tax prior to opening.
Employer Identification Number (EIN) – Many businesses will register with the Internal Revenue Service (IRS) for an EIN or Employer Identification Number. The EIN is the business equivalent for a Social Security Number for an individual. Corporations, Limited Liability Companies, Partnerships and Sole Proprietorships with employees will all need to register for one. Sole Proprietorships without employees can use the owner’s Social Security Number.
There is no cost for an EIN and it only takes a few minutes to get.
Combined Reporting System Number (CRS) – All businesses in New Mexico must register with the Taxation and Revenue Department for a Combined Reporting System (CRS) number. After registering through the Taxpayer Access Point, you will obtain a 10-digit tax identification number which is commonly used for reporting and paying the Gross Receipts Tax and withholding taxes. Expect approximately two business days to process this number
The New Mexico Gross Receipts Tax is similar to Sales Tax but instead collects a tax for all products sold and services rendered.
Non-Taxable Transaction Certificate – Businesses purchasing merchandise to resell will usually want to obtain an New Mexico Non-Taxable Transaction Certificate in order to not pay sales tax for merchandise that is being resold to customers.
Professional License – A variety of professions in the state are regulated and need to be registered before offering certain services. A few common professions that require licensing in New Mexico include; barbers, handyman services, interior designers, recyclers and many more. Additional information, fees and licensing requirements for professions are available from the New Mexico Regulating & Licensing Department.
These are a few of the most common business licenses, but there are way too many licenses and permits in New Mexico for us to keep track of. Before starting your business, check with the City Hall, County Clerk, Chamber of Commerce and/or Economic Developer in your area to get more information regarding business licensing. Additionally, there are companies like IncFile or CorpNet that can do the research to ensure you have the proper federal, state and local licenses.