How to Get a New Mexico Business License

Not all New Mexico businesses need a business license, but for those that do, a license can help them comply with local, state, and federal requirements, build credibility, and ensure their business operates without disruption. 

In this guide, we’ll cover when a business license is required in New Mexico, how to get one, and how to stay compliant after you get it. 

Do you need a business license in New Mexico?

New Mexico does not have a general state-level business license. However, most businesses are subject to at least one licensing requirement. Whether you need a business license in New Mexico depends on your industry, business activities, and location. 

Here’s a breakdown of the local, state, and federal requirements that may apply to you if you do business in New Mexico. 

New Mexico state

New Mexico requires certain types of businesses and professionals to maintain a state-issued business license. Depending on your profession, you may need to enroll in a training program and pass an exam before you can get a professional license. If your business engages in certain activities regulated by the New Mexico Environment Department, you may need to get special environmental licenses or permits before you can do business in the state. 

For instance, businesses in New Mexico that want to sell or serve alcohol must obtain a New Mexico liquor license from the New Mexico Regulation and Licensing Department (NMRLD) Alcoholic Beverage Control Division (ABC), while those that handle or produce food need to get a permit from the New Mexico Environment Department Environmental Health Bureau. 

You can contact the NMRLD via webform or call one of its seven divisions to find out more information about the state licensing requirements that may apply to your business. 

Local

Requirements for local licenses or permits you need for your business can vary depending on your location and industry. 

For instance, mobile food vendors in Roswell, New Mexico must complete the following steps in order to get a vendor permit:

• Get a tax identification number
• Complete an online Mobile Vendor Registration Application
• Schedule an appointment with the Roswell Fire Marshal
• Contact the New Mexico Environment Department Roswell field office
• Get a background check
• Have the Roswell Police Department sign off on their application
• Submit required documents and fees to the Roswell Business License Clerk

You will need to check with your local government office to find out the local licensing requirements for your business. 

Federal

The federal licensing requirements for your business depend on your business activities and industry.

For example, businesses that wholesale, manufacture, import, or sell alcohol at retail locations will need to get a federal permit from the Alcohol and Tobacco Tax and Trade Bureau (TTB). Agricultural businesses may be subject to both state and federal regulations. It’s always best to check with a business lawyer, professional organizations for your industry, or a business license lookup service.

How to get a business license in New Mexico in 7 steps

The steps to getting a business license in New Mexico include setting up and registering your business, applying for an employer identification number (EIN), and applying for state, local, and federal business licenses and permits.

Step 1: Set up your business

Formally setting up your business involves choosing a business structure and name. How you structure your business depends on your unique needs.

Common types of business structures include the following:

• Sole proprietorships
• Limited liability companies (LLC)
• Partnerships 
• Corporations

Once you’ve settled on a structure, you’ll need to pick a name for your business. Your business name should be distinctive and comply with New Mexico naming requirements. 

Step 2: Register your business 

Depending on your business type, you may need to register with the New Mexico Secretary of State. You can register via the New Mexico Secretary of State’s online filing portal by selecting the appropriate form and creating an account. 

Step 3: Get an EIN

The IRS requires certain businesses—including those that have employees—to have an EIN. You can get an EIN for free on the IRS website, or use an online EIN service to handle your application for you. Even if you don’t plan to hire employees, banks may also require an EIN to open a bank account or apply for a business credit card.

Step 4: Register for a New Mexico Business Tax Identification Number (BTIN)

Anyone who engages in business in New Mexico needs to register their business with the New Mexico Taxation and Revenue Department. “Engaging in business” is defined as conducting activities for direct or indirect benefit.

Even if you don’t have a physical presence in New Mexico, you are required to register for a BTIN if you made at least $100,000 in taxable sales sourced to the state in the previous calendar year.

You can register your business by visiting the New Mexico Taxation and Revenue Department website and clicking Apply for a New Mexico Business Tax ID. 

You may need the following information to complete your registration:

• Your email address
• EIN, Social Security Number, or Individual Taxpayer Identification Number (ITIN)
• Information about business owners, partners, and shareholders
• Your business registration number from the New Mexico Secretary of State
• Information about your liquor, cannabis, or contractor license, if applicable

After you register your business, you will get a New Mexico BTIN, as well as any relevant state tax ID numbers that may apply to your business. You will use your BTIN to report and pay taxes. 

Step 5: Apply for a state business license (if necessary)

The steps for applying for a state-level business license in New Mexico depend on the type of license or permit you need. You may need to apply for a state business license via the NMRLD, PSI (a third-party test development and delivery company), and/or the New Mexico Department of the Environment.

The NMRLD certifies and regulates New Mexico businesses across the following divisions: 

• Alcoholic Beverage Control Division (ABC): Regulates the sale, service, and public use of alcohol.
• Boards and Commissions Division: Oversees 29 professions and specialized trades, including acupuncture, dentistry, and occupational therapy. 
• Cannabis Control Division: Provides licensing for 10 different types of cannabis business owners, including cannabis producers, manufacturers, couriers, retailers, and research laboratories.
• Construction Industries Division (CID): Licenses professionals in the construction industry via PSI.
• Manufactured Housing Division (MHD): Provides licensing via PSI for individuals involved in the manufactured housing industry, including brokers, dealers, and installers. 
• Financial Institutions Division: Regulates financial industry professionals and businesses, including state-chartered banks and credit unions, collection agencies, and mortgage lenders.
• Securities Division: Provides services including license verification of investment professionals and access to Financial Industry Regulatory Authority (FINRA) registration applications and ensures certain investment advisors, broker-dealers, and sales representatives comply with regulatory requirements. 

Many businesses can apply for a state business license issued by the NMRLD online by using the New Mexico Professional Licensing User System (NM-PLUS). Visit the NMRLD’s Online Services page and click the drop-down menu for the relevant division, then click on the NM-PLUS link. You can create an account by clicking on Self Register, then log in to the online system to complete and submit your license application. 

Some businesses—such as those that need a CID or MHD license or certain financial professionals—may need to pass an exam before they can apply for a business license. Exams and licensing for these businesses may be provided through third parties. 

Businesses that engage in the following types of activities may need to get a license or permit from the New Mexico Environment Department:

• Handling or producing food
• Installing septic systems 
• Installing and maintaining petroleum tanks
• Operating or constructing a public swimming pool, spa, or bath
• Conducting medical imaging or radiation therapy
• Maintaining public water systems
• Generating toxic waste
• Producing regulated air emissions

Step 6: Apply for local permits or licenses

You will need to contact your local city hall or county clerk to find out about any local license or permit requirements. If your business operates in multiple municipalities, you may need to obtain multiple licenses. 

For example, the Albuquerque Planning Department requires all businesses to apply for business registration and pay a business registration fee for each business location before they can conduct business in the city. 

Step 7: Apply for federal licenses

In addition to local and state licenses, some businesses may be required to apply for a federal license. 

Here are the agencies to contact about federal licensing if your business is engaged in the following types of business activities:

• Agriculture: U.S. Department of Agriculture (USDA)
• Alcoholic beverages: TTB
• Aviation: Federal Aviation Administration (FAA)
• Commercial fisheries: National Oceanic and Atmospheric Administration Fisheries Service (NOAA Fisheries)
• Firearms, ammunition, and explosives: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
• Fish and wildlife: U.S. Fish and Wildlife Service (FWS)
• Maritime transportation: Federal Maritime Commission (FMC)
• Mining and drilling: Bureau of Safety and Environmental Enforcement (BSEE)
• Nuclear energy: U.S. Nuclear Regulatory Commission (NRC)
• Radio and television broadcasting: Federal Communications Commission (FCC)

After getting your New Mexico business license

Once you get your New Mexico business license, you’ll need to keep it in good standing. Here are some tips to staying compliant:

• Keep your information up to date. You may need to update your license if you change your business structure or location.
• Comply with local regulations. Research and comply with local regulations, including local zoning, health, or environmental rules—or you may find your business license revoked.
• Renew your license. If you don’t meet annual renewal requirements, you risk losing your business license (and your ability to do business). 

Getting an NM business license the easy way

Searching for business licenses and figuring out how to stay compliant with state, local, and federal requirements can be a lot to sort through and keep straight.

LegalZoom’s business license report and management service takes this important task off of your plate. Simply tell us a little bit about your business and we’ll provide you with a list of the local, state, and federal business licenses and permits your business needs. We’ll build you a compliance calendar and remind you about any changes to licensing requirements and upcoming renewal deadlines to help you stay compliant.  

FAQs

What should I do before getting a business license?

Before getting a business license you typically need to choose a business structure, conduct a New Mexico business name search, get an EIN, register your business (if necessary), and register for a Business Tax Identification Number (BTIN). 

How much is a business license in New Mexico?

The cost of a business license in New Mexico depends on the type of license you need.

For example, a Bernalillo County Home Occupation Business License costs $50, while a New Mexico Restaurant Liquor License has a nonrefundable application fee of $200, plus a $50 registered agent fee and a $100 Sunday sales fee, if applicable. Many licenses will also require an annual renewal fee. 

How long does it take to get a business license in New Mexico?

The length of time it takes to get a business license in New Mexico can depend on a variety of factors, including average processing times for the individual licensing agency and how long it takes to meet any additional requirements, such as obtaining insurance or undergoing inspections.

For instance, businesses that want a liquor license in Taos, New Mexico must go through a series of steps, including completing an NMRLD ABC application, scheduling a public hearing to get approval from the town council, and paying to publish two notices of the public hearing in the Taos News, with the first hearing published at least 30 days before the hearing. After receiving the New Mexico state liquor license, businesses must submit a copy of the license to the town clerk and pay a $250 municipal liquor license tax.