How to start a business in New Mexico

What do you file before you open in New Mexico?

1. Pick a structure

   Most owners choose an LLC or a corporation; the S corp or C corp tax choice comes later. See New Mexico LLC guide, New Mexico corporation guide, S corp or C corp in New Mexico. By trade: cleaning business, handyman.

2. Check and register the name

   Search the Secretary of State records before you pick a name: state name search. See New Mexico name search guide.

3. File with the state

   New Mexico charges the state filing fee once: a corporation's articles of incorporation cost $100 ¹. See LLC cost.

4. Name a registered agent

   A New Mexico corporation must keep a registered office and a registered agent in the state. ² Our registered agent service runs through our partner Registered Agents Inc (RAI), the registered agent of record. See New Mexico registered agent rules.

Which accounts do you open after you file in New Mexico?

1. Get an EIN

   An EIN is the business's federal tax ID. The IRS issues it online, for free, and warns about websites that charge for one. ³

2. Open your state tax accounts

   Anyone engaging in business in New Mexico registers with the New Mexico Taxation and Revenue Department, which issues a Business Tax Identification Number after an application that can be filed online. ⁴ See Sales tax permit.

3. Register as an employer

   Every employer in New Mexico, including a new business, registers with the Department of Workforce Solutions. A non-agricultural employer files once quarterly payroll reaches $450 or someone works in each of 20 weeks of a calendar year. ⁵ New Mexico employers report each newly hired or rehired employee to the New Mexico New Hire Directory within 20 days of the hire date, whether the job is full-time, part-time or temporary. ⁶ The New Mexico Workers' Compensation Administration says employers of three or more workers must carry workers' compensation coverage, and employers doing work licensed under the Construction Industries Licensing Act need it whatever their headcount. ⁷

What keeps your New Mexico business in good standing?

1. Check licenses and permits

   The New Mexico Department of Workforce Solutions new-business checklist lists the Regulation and Licensing Department and says an owner will need to research the specific licenses and permits for the type of business. ⁸

2. Calendar the yearly filings

   New Mexico has no annual report for LLCs. See New Mexico annual report.

3. Use free local help

   Small business advising in New Mexico runs through the New Mexico Small Business Development Center. ⁹ New Mexico's official state website has a Business in New Mexico section with a Business Navigator that walks through registration, tax ID numbers, licenses and permits, hiring requirements, insurance and taxes. ¹⁰

What it costs to start a business in New Mexico

Do you need a business license in New Mexico?

It depends on the trade and the place. The U.S. Small Business Administration says most small businesses need a combination of licenses and permits from federal and state agencies, and that requirements and fees depend on the business activity and the issuing agency. ¹² New Mexico's own rule is in step 8. ⁸ Where to look up licenses: Business in New Mexico.

Also in New Mexico

• Paid sick leave. The New Mexico Department of Workforce Solutions says the Healthy Workplaces Act requires all private employers to offer earned sick leave, granted as 64 hours up front or one hour for every thirty hours worked. ¹³
• Wage withholding return. The New Mexico Taxation and Revenue Department says employers withhold part of each employee's wages for income tax and file the Wage-withholding Tax Return, Form TRD-41414. ¹⁴

More for New Mexico

• LLC guide
• Corporation guide
• New Mexico LLC cost
• Name search
• Registered agent
• New Mexico sales tax permit
• Annual report
• S corp or C corp

Common questions