The Land of Enchantment is the third largest crude oil and ninth largest natural gas producer in the United States. New Mexico's important economic drivers are tourism and military/government agencies, such as the Los Alamos National Lab and the White Sands Missile Range. New Mexico is currently the state most dependent on tax dollars.
While New Mexico is not the premier destination for aspiring business owners, its other-worldly natural beauty coupled with state government incentives (like low property tax and tax credits for businesses in different industries) should go a long way to attract budding entrepreneurs.
Here are some statistics on small businesses (SMBs) from the state of New Mexico:
- There are 156,996 small businesses in New Mexico that represent 99% of all businesses in the state.
- These five industries have the largest number of small businesses:
- Other services (except public administration) — 20,789
- Professional, scientific, and technical services — 20,772
- Construction — 15,254
- Health care and social assistance — 15,082
- Retail trade — 14,328
- A total of 339,731 individuals are employed by small businesses. They account for 54.2% of all employees in the state.
- The average median income for self-employed individuals running their own incorporated businesses is $50,000. That’s $30,000 more than those who run unincorporated businesses.
- To form a general partnership, the state requires each partner to sign and file a Statement of Partnership Authority. The filing fee is $50.
- Retailers who have $100,000 or more in annual gross revenue from sales in New Mexico are considered to have economic nexus. This means that they are obligated to collect sales tax from buyers in that state.
- State law requires that every New Mexico LLC designate a New Mexico registered agent that will be available during regular business hours at a physical address within the state.
- When forming a corporation in New Mexico, you are required to file your Articles of Incorporation with the Corporations Bureau at the Secretary of State’s office. The filing fee is $100.
- There are 1,159 small business exporters in New Mexico that account for 40.4% of the state’s $3.5 billion worth of export revenue.
- New Mexico taxes corporate income at a series of marginal rates. Net income below $500,000 is taxed at a rate of 4.8%. Net income over $500,000 is taxed at a rate of 5.9% plus an additional $24,000.
- Out of over 156,000 SMB owners, 51,090 are self-employed minorities.
- In 2019, small businesses generated 7,058 net jobs. Firms with fewer than 20 employees added 4,163 net jobs, while businesses with between 100 and 499 employees created 152 net jobs.
- The filing fee for filing the Articles of Organization when forming an LLC (limited liability company) is $50.
- In 2018, banks in New Mexico issued 29,982 loans under $100,000 to small businesses while reporting under the Community Reinvestment Act. The total value of the loans was $455.5 million.
- The state government has put forward a $330 million relief package to assist struggling businesses that have been hit hard by the effects of the COVID-19 pandemic.