START YOUR BUSINESS Q&A

Q: What is the reason for the business registration requirement?

A: Different legal structures, such as Limited Liability Company, Partnership, and Corporation enjoy legal benefits such as limited liability. To gain these benefits, you must register your business with the New Mexico Secretary of State. Select START at the top of the web page, then scroll down and select REGISTER LEGAL STRUCTUE for more information.

 

Q: How much does it cost to register my business in New Mexico?

A: $50 (subject to change)

 

Q: Why do I need both a federal and a state tax ID?

A: Your business must pay both federal and New Mexico taxes. You will need one ID to pay federal taxes and another to pay state taxes. Select START at the top of the web page, then scroll down and select OBTAIN TAX ID NUMBERS for more information.

 

Q: What professions and businesses require licenses?

A: The State of New Mexico requires that many professions and business types obtain licenses before doing business, for example, beauticians and radiological technicians must obtain licenses. Select START at the top of the web page, then scroll down and select OBTAIN LICENSES AND PERMITS for more information.

 

Q: Do I need a local business license?

A: Some municipalities and counties require businesses register and be licensed in their county or municipality, Check with the municipality and county offices for details. Select START at the top of the web page, then scroll down and select OBTAIN LICENSES AND PERMITS, select GET LOCAL LICENSES AND PERMITS, and select NEW MEXICO COUNTY AGENCIES for more information.

 

Q: What do I need to do when I hire employees?

A: You need to fill out and submit the IRS I-9 and W-4 forms, which you can download through the internet. You will also need to enter all new hires into the New Mexico New Hires Directory. Select START at the top of the web page, then scroll down and select BUILD YOUR WORKFORCE for more information.

 

Q: What posters must I display? How can I get them?

A: The state and federal government require employers to display several posters dealing with minimum wage, equal opportunity, safety, and other concerns. Information and downloadable posters are available; select START at the top of the web page, then scroll down and select FULFILL WORKPLACE HIRING REQUIREMENTS, continue with the following:

 

  • For mandatory posters provided by the New Mexico Department of Workforce Solutions, select STATE AND FEDERAL POSTERS.
  • For New Mexico Workers' Compensation Administration poster and Notice of Accident or Occupational Disease Disablement form select NEW MEXICO WORKERS' COMPENSATION ADMINISTRATION – PUBLICATIONS.

 

The New Mexico Workforce Solutions website can be accessed directly at www.dws.state.nm.us.

 

Q: What is workers' compensation, and what do I need to do about it?

A: Workers' Compensation is a no-fault system that provides delivery of medical and indemnity benefits to injured workers at a reasonable cost to employers. All businesses that fall under the requirements of the Workers' Compensation Act must obtain workers' compensation insurance through licensed insurance agencies. Employers must pay a quarterly assessment fee and display the required poster and forms. For more information select START at the top of the web page, then scroll down and select FULFILL WORKPLACE HIRING REQUIREMENTS.