![\"Brent](\"http:\/\/www.financenewmexico.org\/articles\/wp-content\/uploads\/2011\/05\/Brent-Eastwood-EDD.jpg\" "\\"Brent")
<\/a>Brent M. Eastwood, PhD, Director of Business Advocacy, NM EDD<\/p><\/div>\n
To launch a business in New Mexico, an entrepreneur needs a legal structure, business name, employer identification number (EIN), state registration, business license and other permits. As complicated as it sounds, it takes most entrepreneurs only a few days to obtain what\u2019s needed.<\/p>\n
Legal structure:<\/strong> Most businesses begin as sole proprietorships or limited liability corporations (LLCs). The sole proprietor buys assets in his own name, and all business profits, losses and deductions go on the owner\u2019s personal tax return. The business owner is personally liable for the business\u2019s debts, obligations and liabilities. Sole proprietors don\u2019t need to register with regulators to establish themselves, but they should check with local and state tax authorities to ensure the business complies with applicable tax laws.<\/p>\n Name:<\/strong> The legal name of a sole proprietorship is the owner\u2019s full name, even if the business uses another moniker. A partnership\u2019s legal name consists of the partners\u2019 surnames or whatever name the partnership chooses. Corporations and LLCs have more latitude to register a legal name with the state; a corporation\u2019s legal name doesn\u2019t need to mention the owners\u2019 names. A company uses its legal name in all business conducted with government entities. The company\u2019s owner can operate under a fictitious name; in New Mexico, he can do it without registering with the state for a trade name or trademark.<\/p>\n Employer ID:<\/strong> An EIN, or federal tax ID number, identifies a business to taxing authorities. An owner whose principal business, office or agency or legal residence is in the United States or its territories can apply online and receive the number immediately if she has a valid taxpayer ID number such as a Social Security number or individual taxpayer ID.<\/p>\n Combined Reporting System number:<\/strong> All New Mexico businesses need a CRS number from the state Taxation and Revenue Department, which uses it to track major business taxes. This number is your state tax ID. Apply for this number (ACD-31015) at any local tax office or online at https:\/\/tap.state.nm.us<\/a> to receive a CRS identification number immediately; applying by mail takes up to two weeks. A business with an average total monthly tax liability greater than $200 for any combination of taxes on the CRS-1 form must report monthly; other businesses can report less frequently.<\/p>\n Business license and other permits:<\/strong> Business owners must secure a business license for about $35 at their municipal office, where they\u2019ll learn about and obtain other necessary permits and licenses that apply to their business. Licensing businesses allows the city to regulate zoning, parking, signage and other aspects of running a business.<\/p>\n Employer Account Number (EAN number):<\/strong> Entrepreneurs with employees are covered by the New Mexico Workers\u2019 Compensation Act, and the EAN identifies the employers for unemployment insurance purposes. Register first with the New Mexico Department of Workforce Solutions, then with a district office of the Taxation and Revenue Department for the worker\u2019s compensation personnel assessment fee.<\/p>\n Laws change frequently, and business owners should verify legal requirements at local taxing authorities or through legal counsel.<\/p>\n For more information, visit www.gonm.biz<\/a>\u00a0or contact your local NM Small Business Development Center.<\/p>\n <\/p>\n Download\u00a0223_Getting Down to Business in NM<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" To launch a business in New Mexico, an entrepreneur needs a legal structure, business name, employer identification number (EIN), state registration, business license and other permits. As complicated as it sounds, it takes most entrepreneurs only a few days to obtain what\u2019s needed. Read more to find out what steps to take. Continue reading