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New Mexico · How-To Guide

How do I get a business license?

New Mexico Secretary of State (entity formation) / New Mexico Taxation and Revenue Department (tax registration and Gross Receipts Tax) / Local jurisdiction for local licenses
Step by Step

How to do it

  1. Determine your business structure: sole proprietor, LLC, corporation, partnership
  2. Register your business entity with the New Mexico Secretary of State (for LLCs, corporations, and most formal entities) - file online at portal.sos.state.nm.us (NM SOS Business Services portal)
  3. Obtain an EIN (Employer Identification Number) from the IRS at irs.gov if forming an entity, hiring employees, or operating as a partnership
  4. Register with the New Mexico Taxation and Revenue Department for applicable taxes through the Taxpayer Access Point (TAP) at tap.state.nm.us:
  5. - GROSS RECEIPTS TAX (GRT) Permit: New Mexico uses a unique "Gross Receipts Tax" INSTEAD of a traditional sales tax - almost all businesses selling goods or services in NM must register; rates vary by location (state + local combined: typically 7-9%; check tax.newmexico.gov/governments/gross-receipts-location-code-and-tax-rate-map/)
  6. - Withholding Tax registration (if you have employees)
  7. - Other applicable NM taxes
  8. Obtain a NEW MEXICO BUSINESS TAX IDENTIFICATION NUMBER (NM CRS ID) through TRD TAP registration
  9. Check with your city or county for LOCAL BUSINESS LICENSES - NM municipalities independently decide; Albuquerque, Santa Fe, Las Cruces, Rio Rancho, and Roswell have their own business licensing systems
  10. Check for industry-specific state licenses: contractors (New Mexico Regulation and Licensing Department, Construction Industries Division - rld.state.nm.us); health professionals, real estate, cosmetologists, engineers through the NM Regulation and Licensing Department (RLD) - rld.state.nm.us
  11. Renew entity annual report with Secretary of State; renew local licenses; renew professional licenses per RLD schedule
Details

What you need to know

Required Docs
  • Business name and type of activity
  • New Mexico business address and registered agent
  • Entity formation documents if LLC or corporation
  • EIN or Social Security number
  • Industry-specific certifications if applicable
Fee
LLC formation: $50 online (low nationally); corporation: $100 online; annual report: $0 (NM does NOT charge for annual reports - FREE); GRT registration: free; local license: varies by city RENEWAL: Entity biennial report every 2 years (no fee); local license: annual per city; professional licenses: biennial per RLD ONLINE OPTION: Yes - portal.sos.state.nm.us (entity formation); tap.state.nm.us (tax/GRT registration); rld.state.nm.us (professional/contractor licensing) WHERE TO GO: NM Secretary of State (entity formation); NM TRD (GRT and tax registration); City/County (local license); NM RLD (professional/contractor licenses)
Online Option
Yes - portal.sos.state.nm.us (entity formation); tap.state.nm.us (tax/GRT registration); rld.state.nm.us (professional/contractor licensing)
Where to Go
NM Secretary of State (entity formation); NM TRD (GRT and tax registration); City/County (local license); NM RLD (professional/contractor licenses)
County-specific variations apply

NM cities independently administer local business licenses. Albuquerque (Bernalillo County), Santa Fe, Las Cruces (Doña Ana County), Rio Rancho (Sandoval County), and Roswell (Chaves County) each have their own business licensing. Many smaller NM cities and rural counties have minimal local licensing requirements.

New Mexico Notes

Important state-specific details

  • GROSS RECEIPTS TAX (GRT): New Mexico's unique tax - imposed on the SELLER (not the buyer) on gross receipts from most business activities; rates vary by location; check the GRT location code map at tax.newmexico.gov; must register through TRD TAP.
  • NM LLC formation: $50 - low nationally; annual report FREE - very low.
  • NM CONTRACTOR LICENSE: required for most construction work - apply through NM RLD, Construction Industries Division; rld.state.nm.us/construction-industries | (505) 476-4700.
  • NM Regulation and Licensing Department (RLD): licenses contractors, electricians, plumbers, real estate agents, cosmetologists, engineers, and many others - rld.state.nm.us.
  • NM income tax: graduated for individuals; 5.9% for most corporations.
Official Source

State office contact

State Office
NM Secretary of State, Business Services - portal.sos.state.nm.us | (505) 827-3600; NM TRD - tax.newmexico.gov | (505) 827-0700; NM RLD - rld.state.nm.us | (505) 476-4500