Albuquerque is a great place to call home, and it is even better when you also call it home for your business. Starting a business may seem complicated at first, but it just takes the correct paperwork and surprisingly most of it can be accomplished online.
For this article, I am focusing on single owner, sole proprietor businesses.
Sign up for your Federal Employer Identification Number or EIN. This is the number that the government and banks will use to track all your financial records. Yes, you can start a business under your social security number, but you may find that keeping separate records and banking accounts for your personal and business records will save you a big head ache when it comes time to file your taxes. You can get your EIN online. It takes about 15 minutes. You will need to know what type of business entity you are starting. You can print it instantly or you can choose to have it mailed to you. Once you have your number you will want to store it in a safe place. It is very difficult to look up this number if you loose it. I suggest also storing the number in a password and identity manager locker app on your computer or phone. Click here to get your EIN.
Next You will want to register your business with the State of New Mexico. Anyone who starts a business in New Mexico is required to sign up for this number. This is how you report your gross reciepts tax, pay local withholding tax and compensating tax. There is no fee to register. Click here to get your New Mexico CRS Number.
Register your business in the city your business will be located. Register your business with the city by applying for your Albuquerque business license or business registration. Each location of your business will need it’s own license. If your business is located in the City of Albuquerque, you will need to register with the City. If your business is located in the Village of Los Ranchos, you will need to register with the Village. The same is true if your business is in Rio Rancho. Links are provided below for the appropriate city. Cost is $35.
Open a Business Bank Account – it is a good idea to start a business with its own bank account. You will use your EIN number to open this bank account so be sure to take a copy of your EIN number and possibly even your business license when you go to open your bank account.
Now you are ready to open for business! I strongly recommend investing in a simple record keeping software like quickbooks. It will make tracking expenses and sales much easier. Investing in record keeping software will save you hours of time and frustration down the road when it is time to pay your gross receipts taxes and when you file your income taxes every year. Most accounting software will sync with your bank account creating an automatic workflow of expenses and receipts. They can be matched up quickly and expenses can be categorized easily into the appropriate business expense category for tax time purposes.
Now, let the fun begin! Being a business owner is exciting and rewarding. When you are ready for a logo design, brand design or web design to help grow your business, let us know and we can help you take your business to the next level.