How to Start a Small Business in New Mexico
Starting a small business is a common dream, but that dream can quickly turn into a nightmare if a would-be entrepreneur doesn't complete all of the necessary legal requirements before officially launching his business. Starting a small business in New Mexico can be a smooth process, especially if you take it step by step and you take advantage of the many resources the state makes available to entrepreneurs and small business owners.
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Instructions
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Start by writing your business plan. Without a business plan that fully flushes out your financial plan, marketing plan and the direction in which you will take your business, your business is doomed to failure.
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Determine where your business will be located. Once you have a business location, contact your city or county to find out whether you will be required to apply for a zoning permit.
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Finalize your business name. Most states require business owners to register their business name. However, in New Mexico, you do not have to register your business name with the state.
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Obtain an Employment Identification Number, most commonly referred to as an EIN number, from the Internal Revenue Service. You can get your EIN number the same day by applying online at the IRS website or by calling their toll-free number at 1-800-829-4933.
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Choose your business structure: Sole proprietorship, partnership, limited liability company or a corporation. Because the business structure you choose will largely determine your liability for your business and the taxes you will pay, consider consulting with a seasoned business attorney before deciding on a business structure.
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Register your business with the Taxation and Revenue Department of New Mexico. Registration generally means you will have to pay state income and gross receipt taxes.
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Register your business with the city in which your business will be located. Expect to pay anywhere from $25 to $35 per year for your business registration.
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Fill out an Application for a Business Tax Identification Number with the Taxation and Revenue Department of New Mexico. You can then mail the form to the appropriate address for your business's location, which you can find on the website for the Taxation and Revenue Department of New Mexico.
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Register your business with the Department of Labor in New Mexico, if you plan to hire employees. Be sure you also ask a Department of Labor representative whether you will be responsible for paying the state's unemployment taxes.
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Contact the New Mexico Regulation & Licensing Department to determine if you will be required to apply for a business license. Whether or not you will be required to have a business license will depend upon your profession.
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