Key Takeaways

  • New Mexico does not require a statewide general business license, but local municipalities often do.
  • Certain businesses, such as those in alcohol, construction, or cannabis, need state-issued licenses.
  • All businesses must register with the New Mexico Taxation and Revenue Department (TRD).
  • Zoning and building permits are often required at the local level.
  • No formal DBA registration process exists in New Mexico.
  • Additional permits may be needed for health, safety, or environmental compliance.
  • Local requirements vary by city or county—each jurisdiction sets its own fees and processes.

What Is a New Mexico Business License?

A New Mexico business license is necessary before a business can conduct business in the state whether it is for occupational services, professional services, trade, or a home business.

Statewide vs. Local License Requirements in New Mexico

New Mexico does not issue a statewide general business license. However, many cities and counties within the state require local business licenses or registrations. For example, cities like Albuquerque and Santa Fe mandate that businesses operating within their jurisdiction pay a registration fee and renew it annually. Each municipality may have distinct requirements, forms, and fees, so it's important to check with your local city or county government to confirm whether a license is required for your specific business type and location​.

Pros

There are several types of business registrations in New Mexico. These include:

  • Commercial Business Registration — Required for a business that will be operating in a commercial area.
  • Door-to-Door Solicitation Registration — For businesses providing door-to-door sales.
  • Home Occupation Registration — This is required for a person or persons providing business services from their home.
  • Special/Temporary Business Registration — This applies to a temporary business such as providing special events or selling items during specific seasons only.

Cons

Failure to comply with the requirements for licensing and permitting in New Mexico can lead to the owner of the business incurring penalties and fines. Non-compliance can also lead to a company being denied permission to do business in the state of New Mexico.

Consequences of Operating Without a Required Local License

Operating a business without obtaining the necessary local business license can lead to serious consequences. These include fines, forced business closure, or denial of future licensing. Furthermore, noncompliance could disqualify your business from accessing government grants or contracts and can create issues with business insurance providers.

Deadline

Once you have applied for and received a business license, it is in effect for one year. It must be renewed to continue doing business in the state. 

Steps

Several steps are required to get a business license. Not all steps are applicable to each category of business license. 

Step 1.

License — Apply for whatever type of business license best suits the type of business you will be offering. 

Step 2.

Filing Records — This step is required for LLCs and corporations that must file legal forms and organizational paperwork with the Secretary of State. 

Step 3.

Professional Licensing — This applies to businesses in certain trades and professional services that require an occupational and state license. Visit the New Mexico Regulations and Licensing Department website for a listing of available business licenses.

Additional State-Regulated Professions and Services

In addition to general occupational licensing, several professions in New Mexico require oversight from specialized regulatory divisions. The New Mexico Regulation and Licensing Department (NMRLD) manages licenses for over 25 professions, including:

  • Accountants
  • Private investigators
  • Massage therapists
  • Real estate brokers
  • Barbers and cosmetologists

The state also issues licenses for sectors such as cannabis, liquor, and construction through dedicated divisions like the Cannabis Control Division and the Construction Industries Division. Each division outlines unique application procedures, continuing education requirements, and renewal guidelines​.

Step 4. 

Assumed or Fictitious Business Names — Some businesses operate under the owner's name while others choose to assign a name to the business. The alternate name may be referred to as a DBA (doing business as), fictitious, assumed, or trade name. When choosing an alternate name, be sure to do a name search at the website for the Secretary of State to determine if the name you want to use for your business is available. There are also restrictions on word usage, meaning, you cannot select a name that could be confused with a state or federal agency such as the Treasury Department, IRS, or CIA.

No Formal DBA Registration Required

New Mexico does not require businesses to register a “Doing Business As” (DBA), also referred to as an assumed or trade name. While you can use a business name that differs from your legal entity name, it will not be registered with the state. This means no exclusive rights are granted to that name unless it is protected under trademark law. Business owners seeking name protection should consider registering a trademark with either the U.S. Patent and Trademark Office or the New Mexico Secretary of State​.

Step 5. 

Trademarks — If your business has a trademark, service mark, or trade name must be registered with the state of New Mexico. These marks/names are created to identify a business's services, products, or goods in a way that distinguishes them from the same or similar products or services supplied by competing businesses. Instructions for registering a trademark or service mark are available at the New Mexico Secretary of State website. 

Step 6.

Tax ID — Request a State Tax Identification Number from the Internal Revenue Service. 

Register with the Taxation and Revenue Department

Nearly all businesses must register with the New Mexico Taxation and Revenue Department (TRD), particularly if they have a physical presence in the state or generate $100,000 or more in annual gross receipts sourced to New Mexico. Registering with TRD allows businesses to obtain a New Mexico Business Tax Identification Number, which is necessary for filing taxes such as:

  • Gross receipts tax (similar to sales tax)
  • Compensating tax (use tax)
  • Withholding tax for employees

Registration can be completed online through the Taxpayer Access Point (TAP), where you can also manage filings and payments​.

Sole Proprietorships and State Filing Requirements

If you're starting a sole proprietorship in New Mexico, you typically do not need to file additional paperwork with the state. Unlike corporations or limited liability companies (LLCs), sole proprietors are not required to register with the Secretary of State. However, if your business involves a regulated profession—such as law, accounting, or occupational therapy—you may still need to obtain a state-issued professional license to operate legally.

Types of Business Licenses in New Mexico

New Mexico recognizes several business structures that may require licensing or registration depending on the type of business and services offered. These include:

  • Sole Proprietorships
  • Partnerships
  • Limited Liability Companies (LLCs)
  • Corporations
  • Occupational or Professional Businesses

Within these categories, there are specialized licenses tailored to specific professions. For instance, occupational licenses may apply to over 30 professions and trades, such as cosmetology, private investigation, and construction.

Registering in Multiple New Mexico Locations

If your business operates in more than one city or county within New Mexico, you must register each location separately. New Mexico does not offer a blanket registration that covers multiple jurisdictions. Each local government has its own registration process and fee structure, so it's important to check requirements in every area where you plan to do business.

Hiring Employees in New Mexico

When hiring employees, business owners must register with the New Mexico Department of Workforce Solutions. This ensures compliance with labor laws and enables the state to monitor employment data, wage reporting, and unemployment insurance obligations. Registering employee information is a critical step in maintaining legal operation as an employer within the state.

Zoning and Building Permit Considerations

In addition to licensing, many businesses must comply with local zoning and building codes. For example, if your business involves construction, renovations, or signage installations, you may need permits from your city or county. Zoning laws determine the types of businesses allowed in certain areas, while building permits ensure compliance with safety and construction standards.

In Albuquerque, for instance, permits are required for installing signage, adding patios or structures, and demolishing buildings. Applications are submitted through the city's online POSSE portal​.

Other Regulatory and Environmental Permits

Some businesses may need additional licenses or permits beyond general or professional licensing. These include regulations related to:

  • Environmental impact (air, water, and waste permits)
  • Health and safety codes
  • Fire department clearances
  • Agricultural operations
  • Food service and handling

Regulatory oversight is often industry-specific, and requirements vary by location. You can find guidance through New Mexico’s Business Portal or consult your local environmental or public health agency.

Business Support Resources in New Mexico

New Mexico provides several resources for entrepreneurs and small business owners, including:

  • New Mexico Small Business Development Center (SBDC): Offers free counseling, business plan assistance, and training.
  • U.S. Small Business Administration (SBA) – New Mexico District Office: Provides funding resources and guidance.
  • New Mexico Business Portal: Central hub for licensing, permitting, and tax information.
  • Local Chambers of Commerce: Great for networking and local compliance help.

These resources can help simplify the process of obtaining a New Mexico business license and ensure you're meeting all necessary regulatory requirements.

Frequently Asked Questions

Do I need a business license to operate in New Mexico? Not at the state level, but most cities and counties require local licenses or registrations.

Where do I register for tax purposes in New Mexico? With the New Mexico Taxation and Revenue Department through the Taxpayer Access Point (TAP) portal.

Is there a statewide DBA registration process? No. New Mexico does not register DBAs. Business name protection must be pursued through trademarks.

How can I find out if I need a local permit? Check with your city or county government or planning department.

What types of businesses require professional licenses in New Mexico? Healthcare, construction, accounting, cosmetology, real estate, and others may require professional or occupational licenses from the NMRLD.

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