Obtaining Business Licenses in New Mexico
Businesses do not require a state-wide business license but should instead apply for local city business licenses. When registering with the New Mexico Taxation & Revenue Department, New Mexican businesses will receive a Combined Reporting System Number, which can be used to pay for a range of taxes.
Many business licenses are issued at the county or city level. You’ll need to coordinate with the locality that you are conducting business in to see which licenses and permits are required. You should obtain your business license before starting operations in any new location. Every location of your business needs to have its own business license.
Types of Business Licenses in New Mexico and Requirements
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Business Tax Registration: Every business must obtain a Business Tax Identification Number from the New Mexico Taxation and Revenue Department in order to record and collect taxes on their revenue.
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Professional Licenses: New Mexico requires businesses in certain professions to obtain specific licenses.
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General Business License: This is the most common license type required for businesses operating in New Mexico. A General Business License covers retail, service, and manufacturing businesses. This license ensures that your business complies with regulations and is registered with the appropriate government agencies.
Starting a Business in New Mexico
When launching a business in New Mexico, securing the required licenses and permits is paramount for legal compliance. The specific licenses and permits your business needs depend on factors such as your industry and location.
Here, you’ll learn about the general business license required of all New Mexico businesses and explore the additional licenses you may need:
Step 1: Apply for New Mexico General Business Licenses: There is one general business license that every small business in the state of New Mexico must obtain. This process registers businesses to pay the gross receipts tax in New Mexico.
NM Seller’s Permit: The only state-level permit or license in New Mexico is the seller’s permit. This is a common name for the state’s gross receipts tax registration. You must register for the gross receipts tax if you intend to sell or lease taxable goods or services.