Do you own a business operating in the state of New Mexico? If so, you may need to acquire licenses and permits to ensure that your company operates in a compliant fashion.
But how do you determine which permits and licenses you need (if any), and where do you acquire them? In this guide to New Mexico business licenses and permits, we’ll answer all the tough questions about this process.
Are There Federal Licenses That My Business Needs?
First off, let’s discuss the matter of federal licenses and permits. There are many business activities that are regulated by various federal agencies, from agriculture to transportation and logistics. We recommend taking a look at the U.S. Small Business Administration’s guide to federal licenses and permits to make sure you’ve got your bases covered.
In addition, most businesses should acquire a federal tax ID number, also known as an EIN (employer identification number). This is essentially a social security number for your business, and it enables you to hire employees, pay business taxes, open business bank accounts, and more. You can acquire an EIN from the IRS for free.
What State-Level Licenses and Permits Apply in New Mexico?
There is no general business license requirement in New Mexico. However, many industries and commercial activities require licensing in the state.
The New Mexico Registration & Licensing Department manages business licensing, including industry-specific licenses. Industries that require licensing range from construction to the mortgage industry. The Registration & Licensing Department also manages professional licenses. You can learn more about these requirements and registristration processes right here.
For environmental permits, consult the New Mexico Environment Department website.
Which Tax Registrations are Required for New Mexico Businesses?
In addition to occupational licenses and permits, there are a number of state-level tax registrations, which are based on the industry you operate in and which business structure your company uses.
According to the New Mexico Taxation & Revenue Department, “anyone who engages in business in New Mexico must register with the Taxation and Revenue Department (TRD). We may make an exception if your business is exempt from gross receipts, withholding, or compensating tax by state law.”
There are numerous taxes that could apply to your business, depending on your industry, business type, and specific commercial activities. These include the Bingo and Raffle Tax, Boat Excise Tax, Cigarette Tax, Conservation Tax, Gasoline Tax, and Liquor Excise Tax, among others. You can learn more about these and other tax requirements at this link.
Are There Local Licenses, Permits, or Registrations in New Mexico?
The answer to this question obviously depends on where in New Mexico you’re operating your business, but there are indeed quite a few licenses, permits, and tax registrations required by New Mexico localities.
Some licenses in New Mexico are managed and administered at the local level. You will need to contact your local city or county clerk for more information.
Thankfully, many of the largest cities in New Mexico also have business resource websites that provide information on local licensing requirements, including cities like Albuquerque, Las Cruces, Rio Rancho, and Sante Fe.
If we were to break down the exact rules and regulations regarding permitting in every locality in the state of New Mexico, this article would become excessively lengthy. With that in mind, we’ll simply say that every business owner should check with their local government to determine whether there are licenses, permits, or tax registrations required to operate in compliant fashion.
Can I Hire Someone to Research Licenses and Permits for My Business?
If this process sounds like a bit of a hassle, that’s because it certainly can be. If you would rather hire a reputable business services provider to handle this for you, that is always an option.
Companies like Incfile can research the necessary licenses and permits for your company on the federal, state, county, and municipal levels. They will then send you the applications you need to acquire these permits and licenses, meaning all you need to do is fill them out and mail them in.
There is no one-size-fits-all answer for the question of which licenses and permits your business might require to operate in the state of New Mexico. Instead, it’s important that you know how to access the resources to determine which permits your company needs to operate in a compliant fashion.
We hope this article helped you to do just that, and we wish you good fortune in your business future!