How to Get a Small Business License in New Mexico

Are you looking to start a small business in New Mexico? You could need to obtain one or more state licenses and permits or complete one or more kinds of state registration for your business.

Here's a quick look at some of the most common regulatory requirements for New Mexico businesses.

Which Business Licenses Do You Need for Your Small Business?

When starting a business in New Mexico, you must:

• register your business entity with the New Mexico Secretary of State (SOS)
• file taxes with the New Mexico Taxation and Revenue Department (TRD), and
• apply for business licenses and permits with your state, county, and town.

Your business structure, industry, and location will determine which licenses and permits your business must apply for. The main types of business licenses, permits, and registrations are:

• general business licenses
• professional licenses
• seller's permits (sometimes called "sales tax certificate" or a similar name)
• zoning and building permits, and
• doing business as (DBA) registrations.

(For more general guidance, see our article on the legal requirements for starting a small business.)

General Business License in New Mexico

New Mexico, like many other states, doesn't require or issue a statewide general business license. However, the state requires some kinds of businesses to get a license from the state. For example, businesses that sell alcohol must apply for some sort of liquor license, and construction businesses must either have or employ someone who has a construction license.

New Mexico's Business Portal website has a section on state licenses and permits. The section includes links to webpages with information for:

• liquor licenses
• professional licenses, certifications, and registrations
• construction licenses
• environmental licenses and permits, and
• financial industry professionals.

Each webpage provides instructions for how to obtain a particular license. For instance, the section on environmental licenses and permits lists which business activities require a license or permit from the New Mexico Environment Department. The webpage also links to the Environment Department's website, specifically an alphabetized list of the licenses and permits issued by the Department.

In general, you'll need to look at your company's location and business activities to determine whether you need to apply for a license or permit. Local governments often require businesses that want to operate within municipal or county limits to obtain a license or register their business. Some cities and counties require every business to have a license while others require only businesses in particular industries to get a license.

For example, the City of Albuquerque requires anyone who wants to do business within city limits to apply for and pay a Business Registration Fee. You must renew your business's registration and pay a renewal fee every year to the Planning Department. If your business has multiple locations within the city, then you'll need to register each place of business. You can complete the registration and renewal processes online via POSSE, Albuquerque's online service portal.

Visit your city's website or contact local officials to determine whether your business operations require a license. If you're operating in multiple cities or counties in the state, you'll likely need to register your business in each of those locations. In general, every city and county will have its own procedure and license fees. Some municipalities will offer an online registration process while others will require you to submit a paper form to register your business.

Professional and Occupational Licenses for Businesses and Individuals in New Mexico

Before you start practicing your profession or occupation in New Mexico, make sure you have the licenses and certifications required for your industry. Depending on your area of practice, you might be required to have two separate licenses: one for you and one for your business.

The New Mexico Regulation and Licensing Department (NMRLD) oversees many (but not all) of the regulatory boards and commissions for licensed professions and occupations. The NMRLD is broken down into seven divisions:

• the Alcoholic Beverage Control Division issues liquor licenses
• the Boards and Commissions Division regulates 29 different professions and trades, from accountancy to social work
• the Cannabis Control Division licenses and regulates the growing, manufacturing, testing, selling, delivering, and transporting of marijuana
• the Construction Industries Division oversees construction and contractor licensing
• the Financial Institutions Division regulates and licenses financial entities
• the Manufactured Housing Division handles the licensing, permits, inspections, and audits related to manufactured houses; and
• the Securities Division oversees the securities market, including licensing stock brokers and investment advisers.

Most professionals will be interested in the Boards and Commissions Division. The Boards and Commissions section of the NMRLD website lists the professions and occupations the NMRLD handles. By clicking on a listed item, you'll see a dropdown menu with links to detailed information, including:

• overview and contact information
• board or commission information
• licensing, registration, and renewal
• instructors, training requirements, and continuing education
• discipline and enforcement
• frequently asked questions
• fees
• statutes, rules, and rule hearings, and
• background report instructions.

For example, suppose Juana wants to work as a licensed private investigator. She'll need to apply for a license through the New Mexico Private Investigations Board. Juana can get extensive information about the Board and its licensing requirements on the NMRLD website. She can navigate to the Boards and Commissions Division section of the NMRLD website and click on any link under "private investigations." The Board's website has information on licensing exams, forms, and fees.

For professions not handled through NMRLD, such as physicians and attorneys, use an online search engine to check directly for the regulatory board for the profession.

Every profession and occupation has its own rules and requirements. For instance, your profession might require you to pass an initial licensing exam or complete continuing education courses. Make sure you know the licensing requirements for your profession.

Register Your Business With the TRD

Virtually every New Mexico business must register with the TRD. Specifically, you must register your business if you're physically located in the state (for example, a store, warehouse, or office). If you don't have a physical presence in New Mexico, you must register your business if you have at least $100,000 in annual taxable gross receipts from sales sourced to New Mexico.

Once you register your business, you'll receive at least one New Mexico Business Tax Identification Number. You'll receive a tax ID number for each tax account your business needs. For example, your business can register for:

• gross receipts tax (New Mexico's alternative to sales tax)
• compensating tax (similar to a use tax)
• wage withholding tax, and
• other business taxes.

You can register your business and apply for a business tax ID online via New Mexico's Taxpayer Access Point (TAP). You can file and pay your taxes online with TAP.

You can find more information in the who must register a business section of the TRD website.

You should also check with your city or county to learn about their tax reporting requirements.

Local Zoning and Building Permits

In some instances—for example, if you're building or renovating a space—you'll need special zoning and building permits from your city or county. To get the required permits or special zoning, you'll typically need to go through a review process that usually consists of filing an application, attending meetings with local officials, and passing final inspections. If your work is extensive, you could also need to submit site plans or hire a professional architect or engineer.

Visit your city or county website for more information about the local permitting process. For example, the City of Albuquerque requires your business to get a permit from the city's Building Safety Division if you want to:

• install a sign
• put in an elevator
• add a patio cover or porch
• demolish a structure, or
• build walls and fences.

Albuquerque allows you to apply for a building permit online. You can also submit plans online and check the status of your application.

Be sure to review your city and county's codes and ordinances to figure out which zoning and building requirements apply to your business and planned operations.

Zoning laws. If your type of business isn't in line with the zoning code, it might make sense to look for another space for your business. Alternatively, you might be able to apply for a special use permit. A special permit can provide your business with an exception to the current use laws.

Building code. You can work with local departments and agencies to apply for building and construction permits. You'll likely need to have inspections related to your space's structural, electrical, mechanical, and plumbing features.

If you're going to lease a commercial space, make sure you have a section in the commercial lease that ensures that the building and your use of the space align with the zoning laws.

No DBA Registration Process in New Mexico

New Mexico, unlike most other states, doesn't have a process to register DBAs. A "DBA" is any name that you use to conduct business that's different from your legal name. Generally, your legal name is the real name of a business's owner or the name your company has on file with the SOS.

For example, suppose Gustavo Fring, a sole proprietor, owns a restaurant called "Los Pollos Hermanos." Gustavo's DBA would be "Los Pollos Hermanos" because it's not the same as his actual, legal name, Gustavo Fring. Or, suppose a corporation filed articles of incorporation under the name "Raintree Farm Corp." But the corporation does business as "Wildfire Ranch." The corporation's legal name would be "Raintree Farm Corp." but its DBA would be "Wildfire Ranch."

A DBA might also be called:

• an "assumed name"
• a "fictitious name," or
• a "trade name."

While you don't need to (and can't) register your DBA in Mexico, you can still protect your business name. Consider filing a trademark with the United States Patent and Trademark Office. You can also register your trademark with New Mexico.

Other Licenses and Permits Your Business Might Need

Apart from the licenses and permits discussed above, your business could be required to comply with other laws and regulations. For example, your business could need to apply for special licensing or follow special rules related to:

• safety
• health, and
• the environment.

These regulatory areas could be encompassed within other licenses, permits, and registrations. However, at other times, these licenses and permits will require a separate process altogether. If you're part of a highly regulated field, be prepared to apply for multiple licenses and permits. For instance, if you're running a plant that could potentially affect water streams or air quality, then you'll probably need to follow additional environmental protocols.

The regulatory requirements vary depending on the city or county involved. You should check the websites for the city and county where you'll operate your business for more information. Some businesses might be exempt from local licensing requirements under state or federal law.

Check with your federal, state, and local governments for more information.

Additional Information for Small Businesses in New Mexico

A great place for new business owners to start is the business section of New Mexico's government website. The website has a wealth of resources and information related to:

• registering your business
• filing business taxes
• applying for licenses and permits
• obtaining business insurance, and
• hiring employees and following labor laws.

In addition, the U.S. Small Business Administration (SBA) is a helpful free resource for new businesses, particularly for finding funding and financial counseling. The SBA has a district office in Albuquerque. You can find a list of upcoming events, resources, and news for small businesses on the SBA website.

You should also check out the New Mexico Small Business Development Center (SBDC). The SBDC offers counseling, workshops, and resources to small businesses throughout the state.

Apart from these great state resources, you can also find information on the small business section of our website. If you want to learn even more, check out Legal Guide for Starting & Running a Small Business, by Fred S. Steingold (Nolo), and The Small Business Start-Up Kit, by Peri Pakroo (Nolo).

If you're looking for professional legal help, talk to a New Mexico business lawyer. Consider working with an attorney who has experience assisting businesses in your industry. A legal professional can help you work through local or state licensing and permitting processes.