This week we’re covering the Land of Enchantment – New Mexico! Though admitted to the union in 1912, New Mexico has, for centuries, been home to the native Navajo, Pueblo, and Apache people. With the fourth-largest native population in the United States, New Mexico continues to be an important center of Native American culture. This culture, along with New Mexico’s stunning natural beauty, are the two of the main drivers of one the state’s biggest industries – tourism.
Along with tourism, New Mexico has a rich deposit of fossil fuel and natural gas, and is home to multiple military bases. In fact, federal spending is one of the biggest sources of revenue for New Mexico. The government of New Mexico is always looking for ways to help small businesses grow, and there are loads of tax incentives available to entrepreneurs in the state! But what does it take to start a small business there? How do you form an LLC or incorporate in New Mexico? And are there any special rules you should be aware of?
What is needed to start your small business in New Mexico?
Anyone that does business in New Mexico has to register with the New Mexico Taxation and Revenue Department, and be issued a CRS Identification number. Your CRS number is used to collect and pay tax on gross receipts. In addition to registering, all new small businesses should apply for a ‘Doing Business As’ name with the Secretary of State’s office so that they can advertise, collect checks, and open a bank account under their business’s name. If you’d like, we are happy to run a free DBA name search on your behalf!
How do you form an LLC or incorporate in New Mexico?
Once your business is registered, it is a good idea to either form a limited liability company or incorporate in New Mexico, as turning your business into its own legal entity helps protect your personal assets from being seized by debtors, or as a result of a lawsuit. The process itself is fairly straight-forward too. First you need to find and reserve a corporate or LLC name that includes a designator like ‘Incorporated,’ ‘Corporation,’ or ‘Limited Liability Company.’ Next, you file either your Articles of Incorporation, if you want to form a corporation, or your Articles of Organization, if you’d like to form an LLC, with the New Mexico Secretary of State. You will need to include the name and address of your registered agent, as well as the names and addresses of the organizers of the business entity. After that you simply mail in your forms, along with a check that covers the filing fee, and wait for approval.
Does New Mexico offer any tax breaks to small businesses?
Yes! New Mexico actually offers multiple tax breaks and incentives to certain small businesses operating within the state. For example, if your business operates in a rural area, deals with technology and research, offers alternative energy solutions, or even if it just bought equipment to expand its manufacturing operations in New Mexico, you could avail of tax credits. Check with New Mexico’s Taxation and Revenue division to see if your business qualifies for any tax breaks.
Thinking about giving your small business an Enchanted start? Just give us a call at 1-(877) 692-6772, or leave a comment below, and we’ll be happy to help you start your own company in New Mexico!