{"id":397,"date":"2020-10-19T11:21:16","date_gmt":"2020-10-19T17:21:16","guid":{"rendered":"https:\/\/www.tax.newmexico.gov\/businesses\/?page_id=397"},"modified":"2025-05-21T14:13:20","modified_gmt":"2025-05-21T20:13:20","slug":"business-types","status":"publish","type":"page","link":"https:\/\/www.tax.newmexico.gov\/businesses\/business-types\/","title":{"rendered":"Business Types"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; background_repeat=&#8221;round&#8221; custom_margin=&#8221;0px||||false|false&#8221; custom_padding=&#8221;0px||0px|||&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; use_background_color_gradient=&#8221;on&#8221; background_color_gradient_stops=&#8221;#ffffff 0%|#dedede  100%&#8221; background_color_gradient_start=&#8221;#ffffff&#8221; background_color_gradient_end=&#8221;#dedede &#8221; custom_margin=&#8221;0px||||false|false&#8221; custom_padding=&#8221;4px||4px||true|false&#8221; background_color_gradient_stops_tablet=&#8221;#ffffff 0%|#dedede  100%&#8221; background_color_gradient_stops_phone=&#8221;#ffffff 0%|#dedede  100%&#8221; border_width_all=&#8221;1px&#8221; border_color_all=&#8221;#c9c9c9&#8243; global_module=&#8221;210&#8243; saved_tabs=&#8221;all&#8221; locked=&#8221;off&#8221; collapsed=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_dmb_breadcrumbs font_icon=&#8221;%%20%%&#8221; home_icon=&#8221;%%236%%&#8221; use_home_text=&#8221;on&#8221; home_text=&#8221;Businesses&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; body_text_color=&#8221;#282728&#8243; separator_text_color=&#8221;#282728&#8243; link_text_color=&#8221;#000000&#8243; custom_padding=&#8221;0px||0px|15px|false|false&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_dmb_breadcrumbs][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; specialty=&#8221;on&#8221; padding_bottom_1=&#8221;0px&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;1_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_blurb title=&#8221;Explore Section &#038; Events&#8221; use_icon=&#8221;on&#8221; font_icon=&#8221;&#xe044;||divi||400&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;7b5e95ba-231a-438c-8dd9-6676746c29e6&#8243; global_colors_info=&#8221;{}&#8221;][\/et_pb_blurb][et_pb_sidebar area=&#8221;et_pb_widget_area_1&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;50d7f88b-470d-49c8-b370-96c4a9bca4df&#8221; custom_margin_tablet=&#8221;10px||||false|true&#8221; custom_margin_phone=&#8221;&#8221; custom_margin_last_edited=&#8221;on|desktop&#8221; custom_padding=&#8221;|4%|20px|4%|false|true&#8221; saved_tabs=&#8221;all&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_sidebar][\/et_pb_column][et_pb_column type=&#8221;3_4&#8243; specialty_columns=&#8221;3&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_row_inner _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; background_color=&#8221;#ffffff&#8221; custom_padding=&#8221;|20px||20px|false|false&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column_inner saved_specialty_column_type=&#8221;3_4&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_post_title meta=&#8221;off&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; title_font=&#8221;|300|||||||&#8221; title_font_size=&#8221;50px&#8221; title_letter_spacing=&#8221;-3px&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_post_title][et_pb_text _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<h1>There are many varieties of business ownership:<\/h1>\n<h3>Sole proprietorship<\/h3>\n<p>You are a sole proprietor if you own all the assets of a business. You also assume liability for all debts of the business. You have no partners, and you are not incorporated.<\/p>\n<h3>Partnership<\/h3>\n<p>You are a partnership if two or more persons or entities engage in a contract to share in the profits from property, credit, skill or industry.<\/p>\n<h3>Corporation<\/h3>\n<p>You are a corporation if you are:<\/p>\n<ul>\n<li>organized under the business corporations act of the state of your organization;<\/li>\n<li>a joint stock company;<\/li>\n<li>a real estate trust organized and operated under the Real Estate Trust Act;<\/li>\n<li>a financial corporation, or<\/li>\n<li>a bank.<\/li>\n<\/ul>\n<p>For information on corporate income and franchise taxes, download<em>\u00a0<\/em><strong><a href=\"https:\/\/realfile.tax.newmexico.gov\/FYI-350.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">FYI-350: Corporate Income Tax and Corporate Franchise Tax<\/a><\/strong><em>.<\/em><\/p>\n<ul>\n<li><strong>limited liability company<\/strong><span>\u00a0<\/span>&#8211; You are a limited liability company when you are organized under the limited liability company act of your state of organization.<\/li>\n<li><strong>nonprofit corporation and organization<\/strong><span>\u00a0<\/span>&#8211; You are a nonprofit corporation if you are organized under the nonprofit corporation act of the state where your corporation is domiciled. Certain nonprofit organizations are also tax exempt. You are a tax-exempt organization if the federal government has granted you tax-exempt status under Section 501(c) of the Internal Revenue Code. Business income unrelated to your recognized tax-exempt status is taxable federally and in New Mexico. To see information on tax-exempt organizations, download\u00a0<a href=\"https:\/\/realfile.tax.newmexico.gov\/FYI-103.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>FYI-103: Information for Non-Profit Organizations<\/strong><\/a>. For additional information, see also\u00a0<strong><a href=\"https:\/\/realfile.tax.newmexico.gov\/qg-004.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Quick Guide 4: Nonprofit Groups &amp; New Mexico\u2019s Gross Receipts Tax<\/a><\/strong><em>.<\/em><\/li>\n<\/ul>\n<p>If you are considering starting a business in New Mexico, you must decide how to organize your business. The decision involves many different factors, including questions of legal liability, tax considerations, and operational factors. It is a good idea to consult with professionals in making this decision.<\/p>\n<p>Many of the registration and licensing requirements imposed by state and local governments are determined by the type of entity that you select. For more information, see<span>\u00a0<\/span><strong><a href=\"https:\/\/biz.nm.gov\/\" target=\"_blank\" rel=\"noopener noreferrer\">starting a New Mexico business<\/a><\/strong>.<\/p>\n<p>[\/et_pb_text][\/et_pb_column_inner][\/et_pb_row_inner][\/et_pb_column][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are many varieties of business ownership: Sole proprietorship You are a sole proprietor if you own all the assets of a business. You also assume liability for all debts of the business. You have no partners, and you are not incorporated. Partnership You are a partnership if two or more persons or entities engage [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-397","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Business Types : Businesses<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tax.newmexico.gov\/businesses\/business-types\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Business Types : Businesses\" \/>\n<meta property=\"og:description\" content=\"There are many varieties of business ownership: Sole proprietorship You are a sole proprietor if you own all the assets of a business. 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