Starting a Business in New Mexico Checklist

Search business name availability with the New Mexico Secretary of State

Search here to see if your business name is available: https://portal.sos.state.nm.us/corps/Corplookup/Lookdn.aspx

The name of a limited liability company must contain the words “limited liability company” or “limited company” or the abbreviation L.L.C., LLC, L.C., or LC. The word “limited” can be abbreviated as Ltd.

A corporation in New Mexico must have a distinguishable name with a corporate ending such as “Inc.” or “Incorporated”. -

New Mexico Secretary of State

Office of the NM Secretary of State
Corporations Bureau
325 Don Gaspar, Suite 300
Santa Fe, NM 87501
P: (505) 827-4508
F: (505) 827-4387

File paperwork to create my business

Get started by forming your company with the state! Mail or deliver your articles of incorporation or articles of organization to the New Mexico Secretary of State. It will cost $50 to form a New Mexico LLC or $100 (minimum) to form a New Mexico corporation. The state takes 3 months to process, so we strongly recommend paying for expedited processing. Same day processing is $150 extra. Two business day processing is $100 extra.

You’ll need to include this information in your formation documents in New Mexico:

- Business name.

- Name and mailing address of registered agent

- Denote structure of company (LLC only)

- Signature of organizer/incorporator

- Names and address(es) of board of director

If you’d rather not be responsible for filing your business’ legal paperwork, you can incorporate in New Mexico with Northwest Registered Agent.

New Mexico Secretary of State

Office of the NM Secretary of State
Corporations Bureau
325 Don Gaspar, Suite 300
Santa Fe, NM 87501
P: (505) 827-4508
F: (505) 827-4387

Register with the Taxation and Revenue Department

Submit an Application for Business Tax Identification Number. You can download the form online and submit it to any Tax and Revenue Department office. You can also register online at
https://tap.state.nm.us/tap/_/#1

Gross Receipts Tax:

This is basically a sales tax. The state tax rate is 5%, but your total tax will vary from 5.125% to 8.6875%, depending on the location of your business. It varies because the total rate combines the state, county, and municipal taxes. Your business pays the total gross receipts tax to the state, which then distributes taxes to the counties and municipalities.

Income Tax:

Personal Income Tax

If your income is not over $4,000, your tax rate is 1.7%
If your income is between $4,000 and $8,000, your tax is $68.00 plus 3.2% of excess over $4,000
If your income is between $8,000 and $12,000, your tax is $196 plus 4.7% of excess over $8,000
If your income is over $12,000, your tax is $384 plus 5.7% of excess over $12,000.

Corporate Income Tax

If your income is $500,000 or less, the tax rate is 4.8%.
If your income is between $50,000 and $1,000,000 the tax is $24,000 plus 6.4% in excess of $50,000.
If your income is more than $1,000,000 the tax is $56,000 plus 7.6% in excess of $1,000,000

Corporations also have to pay the $50 annual New Mexico franchise tax.

NM Taxation and Revenue Dept

NM Taxation and Revenue Department
Corporate Income Tax Unit
Manuel Lujan, Sr., Building
1100 S. St. Francis Drive
Santa Fe, NM 87505
PO Box 25127
Santa Fe, NM 87504-5127
P: (505) 827-0825

Do I need a business license?

Only certain types of businesses, such as contractors, need a state license. Businesses are licensed through the NM Regulation and License Department. The website has links to licensing and contact information for different types of businesses http://www.rld.state.nm.us/

Any other registration requirements?

You may need a local business license from the city or county where your business is located. Keep in mind that you may need certain permits or an occupational license, in addition to any business licenses.

Bernalillo County

You need a county business license to do business in Bernalillo County. You can download the form off the County’s website then mail it in with a $50 check or money order.

City of Albuquerque

You will need a city business license. You can download the application online and then mail it or submit it in person.

Santa Fe County

The county doesn’t have a general business license by you may need certain permits. Fill out the pre-application online and the county will contact you to tell you what types of licenses/permits your business needs. http://www.santafecountynm.gov/growth_management/building_development_services/permit_applications

City of Santa Fe

You need a business license to operate your business in the city of Santa Fe. You have to pass a fire inspection and get a certificate of occupancy before you can get a business license. Once you have those, you can download the license application on the city’s website.
It is best to bring your application to city hall. They can issue your license immediately if you apply in person. You can also mail your application with a check or fax your application and call the office to pay by credit card.

Local License Info

Bernalillo County

Bernalillo County Zoning, Building, and Planning
Business License Clerk
111 Union Square Street SE
Albuquerque NM 87102
P: (505) 314-0349
F: (505) 314-0480
http://www.bernco.gov/business-registration-229818/

City of Albuquerque

City Treasury Office
Business Registration
Plaza Del Sol Building, 2nd Floor
Albuquerque, NM 87102
P.O Box 17
Albuquerque, NM 87103
(505) 768-3398
http://www.cabq.gov/dfa/treasury/business-registration-information/register-your-business

Santa Fe County

Santa Fe County
102 Grant Ave
Santa Fe, NM 87501-2061
P: (505) 986-6200
http://www.co.santa-fe.nm.us/

City of Santa Fe

City of Santa Fe
200 Lincoln Ave.
Santa Fe, N.M. 87501
P.O. Box 909
Santa Fe, N.M. 87504-0909
P: (505) 955-6551
F: (505) 955-6401
http://www.santafenm.gov/index.aspx?NID=941

Collect and Charge Sales Tax

Do I need to collect sales tax?

New Mexico doesn’t have a state sales tax but they do have a gross receipts tax. Gross receipts means the total amount of money or other consideration received from your business activities. It is common for a business to pass the gross receipts tax on to the purchaser by adding it on to the price.

What is the New Mexico gross receipts tax rate?

The state tax rate is 5%, but your total tax will vary from 5.125% to 8.6875% depending on the location of your business. The tax rate varies because the total rate combines the state, county, and municipal taxes. Your business pays the total gross receipts tax to the state, which then distributes taxes to the cities and counties.

How do I register for New Mexico gross receipts tax?

Submit an Application for Business Tax Identification Number. You can download the form online and submit it to any Tax and Revenue Department office. You can also register online at
https://tap.state.nm.us/tap/_/#1
If you mail your tax application, the state will take about 2 weeks to process it.

How much does a New Mexico sales tax permit cost?

There is no fee to register.

Taxation and Revenue Department

New Mexico Taxation and Revenue Department
Physical:
Manuel Lujan, Sr., Building
1100 S. St. Francis Drive
Santa Fe, NM 87505

Mailing:
PO Box 25127
Santa Fe, NM 87504-5127

(505) 827-0825

http://www.tax.newmexico.gov/Businesses/Pages/Home.aspx