How To Start & Grow Your Business

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How to Start a Business in New Mexico

Are you planning on starting a new business in the state of New Mexico, but having some trouble getting started? Are the endless websites and paperwork trails making you feel overwhelmed? That happened to us, too.

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New Mexico’s temperate climate and scenic landscapes, and strong influences from Native American and Hispanic culture, make for a multitude of unique attractions statewide, particularly in large cities like Santa Fe and Albuquerque. Native American culture has been present in the state for more than 2,500 years, and New Mexico is home to 22 Native American tribes. Their rich history is celebrated in museums, ceremonial dances, arts and crafts, language, and traditional villages. And things are looking up on the business front, as well. New Mexico has been receiving praise in recent years, ranking high in minority and women-owned businesses, as well as Albuquerque becoming a hub for entrepreneurs with access to an impressive amount of venture capital. Additionally, the Job Training Incentive Program is one of the most generous training incentive programs in the country, reimbursing 50-75% of employee wages for up to 6 months.

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How to Start a Business

Starting a business can be both exhilarating and challenging. It requires your full attention and energy. It all begins with an idea, an observation that there is a problem and the belief that you have a new solution – or a better one. Allow us to walk you through the steps in this free guide: How to Start A Business.

General resources for starting a business in New Mexico

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Fun facts about starting a business in New Mexico

Famous business founded in New Mexico PNM Resources

PNM Resources is an energy holding company founded and headquartered in Albuquerque, New Mexico. PNM Resources has approximately 2,530 megawatts of generation capacity and serves electricity to 498,000 homes and businesses in northern New Mexico, and also parts of Texas.

Famous entrepreneur born in New Mexico Jeff Bezos

Jeff Bezos was born in 1964 in Albuquerque, New Mexico. Bezos is a technology entrepreneur and investor, the founder and CEO of Amazon.com. Amazon.com became the largest retailer on the internet and a model for Internet sales.

“Your brand is what other people say about you when you’re not in the room.”

Jeff Bezos
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Which type of legal structure is best for my business in New Mexico?

We strongly recommend you incorporate, but you must consider the tax, legal, and liability implications carefully before deciding on the best structure.

Here are 5 helpful steps to determine what is the best legal structure for your business:

Click one of the buttons below to learn more about the different types of business legal structures and how to start them in the state of New Mexico.
LLC (Limited Liability Company)
An LLC is a specific form of a private limited company. It is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Steps to starting an LLC in New Mexico:

  • Step 1 — Choose a name for your LLC.
  • Step 2 — File Articles of Organization.
  • Step 3 — Appoint a Registered Agent.
  • Step 4 — Prepare an Operating Agreement.
  • Step 5 — Comply with any publication requirements.
  • Step 6 — Comply with other tax and regulatory requirements.
  • Step 7 — Annual Reports -- not required in New Mexico.
  • Step 8 — Register foreign LLCs doing business in New Mexico.

For help forming your LLC in New Mexico we recommend CorpNet (they have fees for their service).

Or, you can visit the New Mexico Secretary of State website.

Other New Mexico resources for LLCs:

Secretary of State Business Name Database: Search for the availability of your LLC name here.
File your “Reservation of a Limited Liability Company Name” here.
File your “Articles of Organization” here.

IRS EIN Online: Apply for an Employer Identification Number (EIN) for your LLC here. If your LLC has more than one member, you must get an EIN, even if you have no employees.

New Mexico Taxation and Revenue Department: All New Mexico and foreign LLCs must register with this site, and obtain a Combined Reporting System identification number.

Taxation and Revenue: New Mexico requires pass-through entities, including multi-member LLCs, to file a New Mexico “Income and Information Return for Pass-Through Entities.”

Sole Proprietorship
A sole proprietorship is an unincorporated business with one owner who pays personal income tax on profits from the business. With little government regulation, they are the simplest business to set up or take apart, making them popular among individual self contractors or business owners.

Steps to starting Sole Proprietorship in New Mexico:

  • Step 1 — Choose a sole proprietorship name.
  • Step 2 — File a trademark with the Secretary of State (optional).
  • Step 3 — Obtain licenses, permits, and zoning clearance.
  • Step 4 — Obtain an Employer Identification Number (EIN).

For help forming your sole proprietorship in New Mexico we recommend CorpNet (there are fees for their service).

Or, visit the New Mexico Secretary of State website.

Other New Mexico resources for Sole Proprietorship:

Secretary of State Business Name Search: Search for the availability of your business name here. A sole proprietor may use his or her given name, or an assumed business name.

U.S. Patent & Trademark Office: Federal database for existing trademark registrations. Click on the “TESS” link to conduct a search.

IRS EIN Online: Apply for an Employer Identification Number (EIN) for your sole proprietorship here. If you hire employees, you will need an EIN.

New Mexico Taxation and Revenue Department: All New Mexico businesses must register with this site, and obtain a Combined Reporting System identification number.

Partnership
A partnership is created whenever two or more people do business together for profit and share ownership, even if there is no written agreement to form the partnership. Each partner contributes to all aspects of the business, and each partner shares in the profits and losses of the business.

Steps to starting Partnership in New Mexico:

  • Step 1 — Choose a business name.
  • Step 2 — File a business trademark (optional).
  • Step 3 — Create a partnership agreement.
  • Step 4 — Obtain licenses, permits, and zoning clearance.
  • Step 5 — Get an Employer Identification Number (EIN).

For help forming your partnership in New Mexico we recommend CorpNet (they have fees for their service).

Alternatively, you can visit the New Mexico Secretary of State website.

Other New Mexico resources for Partnership:

Secretary of State Business Name Search: Search for the availability of your business name here. A partnership may use the surnames of the individual partners, or a fictitious business name.

U.S. Patent & Trademark Office: Federal database for existing trademark registrations. Click on the “TESS” link to conduct a search.

IRS EIN Online: Apply for an Employer Identification Number (EIN) for your partnership here. Partnerships must have an EIN, whether you have employees or not. .

New Mexico Taxation and Revenue Department: All New Mexico businesses must register with this site, and obtain a Combined Reporting System identification number.

S Corporation
An S corporation (or S Corp for short), is a special type of corporation created through an IRS tax election. An eligible domestic corporation can avoid double taxation (once to the corporation and a gain to the shareholders) by electing to be treated as an S corporation. In general, S corporations do not pay any federal income taxes. Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns.

Steps to starting S Corporation in New Mexico:

  • Step 1 — Name your corporation.
  • Step 2 — Prepare and file Articles of Incorporation.
  • Step 3 — Appoint a registered agent.
  • Step 4 — Set up a corporate records book.
  • Step 5 — Prepare corporate bylaws.
  • Step 6 — Appoint initial corporate directors.
  • Step 7 — Hold your first Board of Directors meeting.
  • Step 8 — Issue stock.
  • Step 9 — Comply with New Mexico Annual Report requirements.
  • Step 10 — Comply with other tax and regulatory requirements.
  • Step 11 — Register foreign corporations doing business in New Mexico.

For help forming your S corporation in New Mexico we recommend CorpNet (they have fees for their service).

Alternatively you can visit the New Mexico Secretary of State website.

Other New Mexico resources for S Corporation:

Secretary of State Business Name Search: Search for the availability of your corporate name here.
File your “Application for Reservation of a Corporate Name” here.
File your “Articles of Incorporation” here.
File your “Annual Report” here.

IRS EIN Online: Apply for an Employer Identification Number (EIN) for your corporation here.

IRS S corporations: Specific instructions for your tax requirements as an S corp.

New Mexico Taxation and Revenue Department: All New Mexico businesses must register with this site, and obtain a Combined Reporting System identification number.

C Corporation
A C corporation (or C corp for short), under U.S. federal income tax law, refers to any corporation that is taxed separately from its owners. A C corporation is distinguished from an S corporation, which generally is not taxed separately.

Steps to starting C Corporation in New Mexico:

  • Step 1 — Name your corporation.
  • Step 2 — Prepare and file Articles of Incorporation.
  • Step 3 — Find a registered agent.
  • Step 4 — Set up a corporate records book.
  • Step 5 — Prepare corporate bylaws.
  • Step 6 — Appoint initial corporate directors.
  • Step 7 — Hold your first Board of Directors meeting.
  • Step 8 — Issue stock.
  • Step 9 — Comply with New Mexico Annual Report requirements.
  • Step 10 — Comply with other tax and regulatory requirements.
  • Step 11 — Register foreign corporations doing business in New Mexico.

For help forming your C corporation in New Mexico we recommend CorpNet (they have fees for their service).

Or, you can visit the New Mexico Secretary of State website.

Other New Mexico resources for C Corporation:

Secretary of State Business Name Search: Search for the availability of your business name here.
File your “Application for Reservation of a Corporate Name” here.
File your “Articles of Incorporation” here.
File your “Annual Report” here.

IRS EIN Online: Apply for an Employer Identification Number (EIN) for your corporation here.

New Mexico Taxation and Revenue Department: All New Mexico businesses must register with this site, and obtain a Combined Reporting System identification number.

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Why choose New Mexico for my business?

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