The state of New Mexico is situated in the southwest part of the country. Arizona to the west, Colorado to the north, Texas to the east, Oklahoma to the northeast, and Sonora and Chihuahua in Mexico to the south are its neighbors. It is thought that the name “New Mexico” came from the Aztec term “Mexihco,” which referred to Tenochtitlan, the former capital of the Aztecs. To differentiate the territory from the nation of Mexico, the word “new” was added.
Yes, a business license is required in New Mexico to do internet commerce. You are regarded as doing business activities in the state if you sell goods or services online. The New Mexico Taxation and Revenue Department will therefore require that you apply for a business license. Additionally, if you are selling tangible personal property or specific services in the state, you might need to open a New Mexico Gross Receipts Tax (GRT) account.
Yes, payments paid to independent contractors are frequently reported on a 1099 form. A person or company that performs services for another party without being an employee of that entity is known as an independent contractor. An independent contractor must be paid by a business for their services, and this payment must be reported on a 1099 form. That income must be disclosed on the independent contractor’s personal tax return.
Most of the time, sole proprietors are exempt from state registration requirements. However, you might need to register a “Doing Business As” (DBA) name with the state if you are running your firm under a name other than your own. Additionally, you might need to get those licenses or permissions from the state if your company engages in certain activities that do.
Is the EIN the same as the CRS? No, a CRS (Combined Reporting System) number and an EIN (Employer Identification Number) are not the same thing. The Internal Revenue Service (IRS) issues a special nine-digit number called an EIN to identify firms for tax reasons. Contrarily, a CRS number is a special identification code given to companies doing business in the state of New Mexico by the department of taxation and revenue. To file and pay taxes, including the New Mexico Gross Receipts Tax, one needs a CRS number.