- 1). Select a business entity type that will meet the goals and objectives of your new business. New Mexico recognized four basic types of businesses: sole proprietorship, corporation, limited liability company and partnership. Each type of business ownership structure has significant advantages and disadvantages, and the procedure for starting a sole proprietorship or a partnership is distinctly different from the more complex entity types of corporation and limited liability company.
- 2). Conduct a name search for the business name you want to use. New Mexico requires that all businesses operate under a unique name that is distinguishable from other businesses. The state maintains two business databases that you can use to do a preliminary search to determine the availability of your business name: a partnership database at the website of the secretary of state; and a corporations database at the website of the public regulation commission. The final determination of whether a name is available for use in the state is made at the time you submit the paperwork to register the business, but if the name is not in either database, you can be reasonably certain that it's available.
- 3). Register your business with the state. Every business needs to obtain authority to conduct business in the state in which it intends to operate. In New Mexico, official registration of sole proprietorships is optional but if you want to register, the paperwork must be filed with the secretary of state. Partnerships, limited partnerships, and limited liability partnership must also register with the secretary of state. However, corporations and limited liability companies must register with the New Mexico public regulation commission. Both state websites contain complete information for registering a business, including downloadable PDF templates for formation documents, step-by-step instructions and schedules of applicable fees.
- 4). Obtain a federal employer identification number (EIN) from the Internal Revenue Service (IRS). Although a EIN is a federal number that is required for a business to collect employment taxes and file tax returns with the Internal Revenue Service, the state uses the number to register the business for state taxes instead of assigning a different number. Visit the IRS website and apply for an EIN electronically.
- 5). Register with the New Mexico office of taxation and revenue. Visit the taxation and revenue website and follow the instructions for your business entity type. This step is particularly important because this is the state department that collects employment taxes and business taxes. Remittance of amounts owed is usually on a quarterly schedule. If you neglect to register with the agency and money is owed, the penalties can be onerous.
- 6). Obtain your business license and other applicable licenses. Certain businesses require a license to operate, such as dental offices or child care centers. Other businesses require a license or permit because of the type of products sold, such as alcohol or firearms. Visit the website of the New Mexico regulation and licensing department for comprehensive information on the application process for licenses and permits required in the state.
- 7). Fill out form ES802 at the New Mexico department of workforce solutions as part of the unemployment insurance tax system modernization project. All new businesses, whether they have employees or not, must file this form. If you don't have any employees, the department will issue you a waiver. Visit the department's website. The form can be filled out online.
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