What Business Licenses & Permits are Needed in New Mexico?
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.
Before applying for any licenses, the legal structure of the business will need to be established. Learn more about the differences between the sole proprietorship, general partnership, corporation, and Limited Liability Company (LLC).
Related: Comparison of Business Entities
Learn more about forming an LLC in New Mexico
Also see: Steps to starting a business in New Mexico
General 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 business registration fee in Albuquerque 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.
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Building & Zoning Permits
Zoning – Depending on the location of the business, it’s important to verify whether the business needs an occupancy permit or has specific zoning regulations to follow. Depending on city requirements, home-based businesses may need to apply for a home occupation permit.
Building Permit – A building permit may be needed from the city or county building and planning department if there is any construction or renovations to a facility.
Signage Permit – Some municipalities require a permit before adding signage.
Combined Reporting System Number (CRS)
All businesses in New Mexico must register with the New Mexico 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. This number is commonly used for reporting and paying the Gross Receipts Tax and withholding taxes. Expect processing to take approximately two business days.
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 a New Mexico Non-Taxable Transaction Certificate to not pay sales tax for merchandise that is being resold to customers.
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.
In addition to occupational licenses from the Regulating & Licensing Department, a few other types of businesses need specific licensing, such as food establishments and daycares.
Employer Identification Number (EIN)
Many businesses will register with the Internal Revenue Service (IRS) for an EIN (also referred to as a FEIN, Federal Employer Identification Number, or Federal Tax ID Number). The EIN is the business equivalent of 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.
Learn how to apply for an EIN.
These are just some of the most common business licenses a new business will need to register before starting. Before starting your business, be sure to check with City Hall, County Clerk’s Office, Chamber of Commerce, and/or Economic Developer in your area to get more information regarding business licensing. Before starting your business, be sure to check with City Hall, County Clerk, Chamber of Commerce, and/or Economic Developer in your area to get more information regarding business licensing.