Studies show that business owners who craft a business plan have a higher rate of success. Just as you wouldn’t travel in unfamiliar territory with a map, you shouldn’t embark on a business venture without an idea of where you’re going and how to get there.
How you structure your business is up to you. You can be a sole proprietor or form a partnership. Perhaps a corporation or limited liability company offers more of what you need. The City can’t offer you legal advice, but an attorney can. The New Mexico Public Regulation Commission has information about different legal structures on its website at www.nmprc.state.nm.us. If you incorporate the business, you must file with the Public Regulation Commission.
- Obtain a federal tax ID number
Your business must be recognized by the federal government. While your personal social security number might suffice for a sole proprietorship, most businesses require an Employer Identification Number, or EIN. Apply for an EIN at the Internal Revenue Service website at www.irs.gov.
- Obtain a state gross receipt tax (CRS) number
Apply for a state gross receipts tax number online at the New Mexico Taxation and Revenue Service website at https://tap.state.nm.us. You will need your social security card and a photo ID.
- Obtain necessary State licensing
Certain businesses are required to obtain licensing from the State of New Mexico, such as construction, financial services and cosmetology. You must have your state licensing before you can obtain your city business registration. To determine whether your business requires licensing, visit the New Mexico Regulation and Licensing Division website at www.rld.state.nm.us.
- Register your business with the Town of Red River
The Business Registration application is available from the Town's website at or you can apply in-person at the Office of a Municipal Clerk at Town Hall (101 E Main St).
- Follow the law when you hire
The U.S. Department of Labor website at www.dol.gov lists federal rules governing workplace safety, wages, hours and nondiscrimination. Find rules specific to NM at the Department of Workforce Solutions website, www.dws.state.nm.us. This is also where you register as an employer. To register for worker’s compensation insurance, visit the Worker’s Compensation Administration at www.workerscomp.state.nm.us.