What should I know about business licenses in New Mexico?
New Mexico is back! In January 2018, the Land of Enchantment's unemployment rate decreased nearly two percentage points to just a little over five percent, while positive economic signs are expected to continue into the future.
Additionally, small businesses in New Mexico employed almost 55 percent of the private workforce while the number of new small businesses have increased steadily by 2.3 percent over the past two years.
The New Mexico Small Business Development Center Network recently selected multiple businesses as recipients of awards given to companies that show extraordinary commitment to the success of their communities and their businesses.
Some of these outstanding small businesses include Old School New Styles Barber Shop, Signergy Productions, Victory Lane Tires, and Northern New Mexico Stump Grinders, LLC.
Before receiving this award, these businesses had to apply for a New Mexico business license and register with the state's Taxation and Revenue Department and the Department of Labor. Since New Mexico does not issue general state business licenses, entrepreneurs may need to obtain occupational licensing from counties or cities in which their business is located.
You also must register with the state's zoning code division, obtain tax identification numbers, and determine whether your business will be a limited liability corporation, sole proprietorship, partnership, or other structure.
Common New Mexico business license questions
Ah, the Land of Enchantment. Certainly in New Mexico, it should be a breeze to start your own business. These common New Mexico business license questions can help point you in the right direction.
The short answer? No. That’s because there is no general New Mexico state business license. There are different laws in place for each local city or municipality to issue new business licenses and permits. The state, however, does have a professional license that some entities are required to obtain.
The cost of a business license in New Mexico varies based on your city and municipality. Fees start as low as—$35, but that is just for the basic filing fee. Since there can be several forms to file, the cost can go up per document.
Every new business in New Mexico must create an online account. Then you need to obtain an Employer Identification Number (EIN) no matter the type of business you have, or its location. There is also a Combined Reporting System (CRS) required by the IRS.
After that, you must check your local municipalities’ requirements, and don’t forget to check if you need that professional license to meet state laws.
Though New Mexico makes registering for a business simpler in that it’s all done online, there are still several factors to determine which licenses are specific to your business. Avalara can help you identify the licenses you need and prepare your applications.