This article provides three key state business startup requirements for self-employed sole proprietors and general partners who run residential house cleaning businesses. Information from the Secretary of State, the New Mexico Taxation and Revenue Department and selected city and county government sources were used to research this article.
Be aware that sole proprietor and general partner startup requirements in this state are always changing. Some requirements even vary from county to county. It is important that you call or visit your local county or city government to find out local requirements for residential house cleaning businesses and home-based businesses. This article is not intended to be exhaustive or a substitute for qualified legal or tax advice.
Business Name Registration
Sole proprietors and general partners who want a business name that does not include the owner(s) full names (for example, Janice Smith’s Cleaning Service or Martha and Tom Graham’s Maid Service) need to find out whether the name they want to use is available in the state.
Start with a statewide corporate business name search at the Secretary of State’s website to avoid legal problems and customer confusion.
It is also advisable to do an online search for names similar to the one you plan to use. For example, if you want to use the name, Crystal Clean Maid Service, do simple Google searches for “Crystal Clean Maid Service+New Mexico” plus Crystal Clean Maid Service+your county” and “Crystal Clean Maid Service+your town or city”. Search beyond the first page of results. Go at least five pages deep into the search results to see if the name you want or similar names are being used in your state, county or city.
In New Mexico, Partnership names should not be “the same as, or confusingly similar to” the name of another business. If a business is designated “dissolved, withdrawn, or revoked final” on the Secretary of State business search site, the name is available. If the business is marked new corporations or active, suspended, tax clearance, or intent to dissolve, the name is unavailable.
Residential house cleaning businesses should check with the local city or county clerk’s office for licensing requirements. Find a county clerk in New Mexico.
Business License Registration
Residential house cleaning businesses do not have to apply for a state business license in New Mexico.
Residential house cleaning businesses should apply for a business license at their local city or county clerk’s office. If you are operating within multiple communities across New Mexico, you will need to register your business in each of those communities.
The state of New Mexico provides an online Business Portal that links to state resources for start-up businesses.
In New Mexico, a general partnership is created when two or more owners form an oral or written agreement to start a business together. General Partners are not required to be registered with the Secretary of State, however doing so can make future business changes easier. It is advisable for general partners to file a DBA in the county where the business is based. A written partnership agreement drawn up by a lawyer is important for both or all partners. Partnership agreements do not have to be filed with the state.
Sole proprietors and general partners may apply for an Employer Identification Number (EIN) from the IRS even if they do not plan to hire employees. Getting an EIN may make it easier to open a bank account and reduce your risk of identity theft. You can apply for an EIN online. In addition, some business registration forms will require a NAICS business classification number for the house cleaning industry.
Business Tax Registration
Apply for a State CRS (Combined Reporting System) ID number online.
Applications for CRS identification numbers are also available at many city, village and town halls around New Mexico. Those local offices can issue a CRS identification number immediately upon processing an application.
Cleaning services are expected to collect and send to the state a “gross receipts” tax (sales tax). Generally businesses add the gross receipts tax separately on invoices or bundle the tax into the customer’s final price.
Sole proprietors and general partners must pay taxes on the business income they earn through individual state income tax returns. Sole proprietors and general partners are responsible for paying estimated self-employment income taxes in New Mexico (on Form PIT-ES ) similar to the way self employment taxes are paid to the federal government. Get more information about estimated tax requirements by calling the New Mexico Taxation and Revenue Department at (505) 827-0827 .
New Mexico general partnerships that file a Federal partnership information Form 1065, may need to file state income tax Form RPD-41367. Get more information from a CPA or qualified tax preparer to find out if your partnership must file those returns.
Selected New Mexico City Licenses
Albuquerque Business License: https://www.cabq.gov/planning/business-registration-information/business-registration-information
Clovis Business License: http://www.cityofclovis.org/?page_id=715
Farmington Business License: https://www.fmtn.org/140/Business-Registration
Hobbs Business License: http://www.hobbsnm.org/city_clerk.html
Las Cruces Business License: https://www.las-cruces.org/2221/Register-or-Renew-a-Business
Rio Rancho Business License: https://rrnm.gov/409/Business-LicenseRegistration-Instruction
Roswell Business License: https://roswell-nm.gov/566/Business-Licenses
Santa Fe Business License: https://www.santafenm.gov/doing_business_with_the_city#apply