The Complete Guide to New Mexico Business Licenses
New Mexico licensing starts with tax registration. Businesses register free with the Taxation and Revenue Department for gross receipts tax (GRT), then get any city license — Albuquerque requires one for each location — and a state license for construction or other regulated work. This guide explains each step for a new New Mexico business.
Step 1: Form the LLC
File Articles of Organization with the New Mexico Secretary of State for $50. New Mexico LLCs file no annual report. See the New Mexico LLC guide for every formation step.
Step 2: Gross receipts tax registration
Apply for a New Mexico Business Tax ID through the Taxation and Revenue Department's TAP. There is no fee to register. GRT is a tax on the business, not the buyer — you may pass it on if it is shown separately on the invoice. Out-of-state businesses must register once prior-year New Mexico receipts exceed $100,000. Since July 1, 2025, local GRT rates change only in July.
Step 3: City business license
Albuquerque requires a business license for each location, renewed every year, and a current New Mexico tax registration certificate; the city switched from business registration to a business license on January 1, 2025. Other cities have their own requirements.
Step 4: Construction and professional licenses
Anyone who performs or offers construction contracting work must be licensed by the Construction Industries Division of the Regulation and Licensing Department, which also oversees many other professions.
Hiring staff
Employers register for withholding with the Taxation and Revenue Department and for unemployment insurance with the Department of Workforce Solutions.
Checklist
| Registration | Agency | Cost |
|---|---|---|
| Articles of Organization | Secretary of State | $50; no annual report |
| Business Tax ID / GRT registration | Taxation and Revenue Department (TAP) | Free |
| City business license | Albuquerque and others | Annual, per location |
| Construction license | Construction Industries Division | Required for contracting |
Frequently Asked Questions
Does New Mexico require a business license?
New Mexico businesses register with the Taxation and Revenue Department for gross receipts tax, then get any city license (Albuquerque requires one per location) and state licenses for regulated work.
Is gross receipts tax the same as sales tax?
No. GRT is a tax on the business, not the buyer, although the business may pass it on if it is shown separately on the invoice.
How much does it cost to register for GRT in New Mexico?
Nothing. There is no fee to register or obtain a New Mexico Business Tax ID.
How much does it cost to form an LLC in New Mexico?
The Articles of Organization cost $50, and New Mexico LLCs file no annual report.
Do contractors need a license in New Mexico?
Yes. Anyone who performs or offers construction contracting work must be licensed by the Construction Industries Division.