New Mexico Cleaning Business Start-up Laws

This article provides three key state business start-up 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 start-up 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 in person or online 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.

Do Your Own Search Online For Business Names

Crystal Clean business online search results in Duck Duck Go. — Online search example for a (very popular!) cleaning business name.

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 online 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.

Related:

Name Registration Details

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.

Special Rules For Partnership Names In New Mexico

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If a business is designated “dissolved, withdrawn, or revoked final” on the Secretary of State business search site, the name is available.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.

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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.

Find a county clerk in New Mexico.

If you are operating within multiple communities across New Mexico, you will need to register your business in each of those communities.

General Partner Licensing

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.

👥 Start a solid partnership with help from the Business Partnership Portal.

How An EIN Helps

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.

Woman holding a yellow umbrella for insurance against business storms.

A Deep Guide to Cleaning Business Insurance

Protect your house cleaning business from the start with liability insurance and bonding. Also find out:

what types of coverage you need.
the difference between bonding and insurance?
how to find a commercial agent.

Go to the Guide

Business Tax Registration

Apply for a State CRS (Combined Reporting System) ID number online at the New Mexico Taxation and Revenue Department Taxpayer Access Point (TAP).

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.

State Estimated Tax

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 .

State Partnership Tax

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.