Congratulations! You’ve made the important decision to start your own business. Before you set up shop, there are a few steps you must take to comply with the laws of the State of New Mexico and the U.S. government.
Make a plan. While it isn’t obligatory, studies show that business owners who take the time to plan their business have a higher rate of success. You wouldn’t start on a long-distance road trip without a road map so why would you start a business without a similar plan? Not sure how? Follow the links to articles with more information.
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- Starting a business requires passion, research and a plan
- Data-Rich Repositories Can Help State’s Businesses Research Their Markets
- New Year, New Business Plan
Check for trademarks. Also not required, but trademark infringement can carry a high cost for your business. Before you pick a name, use the U.S. Patent and Trademark Office’s trademark search tool to see if a similar name, or some variation, is trademarked.
Set up your business’s legal structure. Businesses must file with the New Mexico Secretary of State at www.sos.state.nm.us. First, you need to determine if you will be a sole proprietor, operate in partnership with someone else, form a limited liability company (LLC), or incorporate your business as a corporation. If you are unsure about which legal structure is right for you, consult your attorney. These articles may also help. (Please note: The articles and information on this website do not constitute legal advice.)
- Liability, Strategy Concerns Help Business Owners Pick Structure
- Sole Proprietorship Makes Sense for Startups
- Startups Should Weigh Partnership, Corporate Structures
- LLC Format Appeals to Many New Businesses
Obtain a Federal Tax ID number. Even if you do not have employees, you must obtain a Federal Employer Identification Number (FEIN). This number, also referred to as an Employer Identification Number (EIN), is free and can be obtained online at the Internal Revenue Service website here.
Obtain a New Mexico Business Tax ID number. This is also free and can be done online at the New Mexico Tax and Revenue Service Taxpayer Access Point (TAP) website here.
Register or license your business with your municipality or county. Local business licenses typically cost $35 per year. New Mexico municipalities and most counties require that businesses within their jurisdiction become licensed. Find your municipal business licensing forms here.
Obtain necessary permits or certifications. Permits and certifications are required for certain industries such as construction, financial services, manufactured housing, alcohol, gaming, and others. Information can be found at the NM Regulation and Licensing Division licensing web page at www.rld.state.nm.us.
If you plan to hire employees. Learn the rules, regulations, and laws governing employment matters at the U.S. Department of Labor website at www.dol.gov. You must register as an employer with the NM Department of Workforce Solutions at www.dws.state.nm.us. Businesses that hire several employees are required to have Worker’s Compensation Insurance. Learn more from the New Mexico Worker’s Compensation Administration.
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- Employers Who Mislabel Employees Risk Penalties
- Hired Hands: Employees or Independent Contractors
- Poor Hires to Management Team Can Destroy a Business
If you want to register a patent, trademark, or copyright. You may obtain a trademark on your logo giving you exclusive rights to its use. Other items that can be protected are intellectual property such as a proprietary process and a word or phrase used in your marketing. For information about specific rules and how to apply, visit the United States Patent and Trademark Office website at www.uspto.gov. These articles may also help: