How to register an escort business in New Mexico
New Mexico. Home to the world's largest hot air balloon festival and largest enchilada. Testing site for the first atomic bomb. Home to more sheep and cattle than people, and our nation's first legally bilingual state. You grace us with orange sunsets and snowy mountain tops. We can trace our earliest Native American heritage through your history as well as our revel in the present.
New Mexico is also an incredibly rich state in which to register your small escort business, and in this article you'll find clear step-by-step advice on how to do just that. For more information on why it's vitally important to register your business, refer to our article Don't get busted for tax evasion: Why registering your escort business is the only option.
For more information on these models in New Mexico, download "Starting a Business in New Mexico" from the New Mexico Public Regulation Commission.
For some helpful advice on picking out a business name, visit Business.gov.
Step four: Register your business / business name
Sole Proprietorship:
In New Mexico you are not required to register your sole proprietorship escort business as a separate business entity: because the business is you, it is not recognized as a separate business and you'll file your business information along with your own personal taxes. You are also not required to register a DBA name. But you will have to file the profits of your business with your own personal taxes, so it's important to keep your books in order (more on that below).
For more information on if taking on a DBA is a good choice for your business, refer to our article Do I want to be a sole proprietor?
Partnership:
In New Mexico you are not required to register your general partnership business as a separate business entity. However, it is highly recommended that you draft a statement of partnership and register it with the Secretary of State. It is not required that you register, but doing so saves you some legal trouble should you encounter it down the road—should you have a falling out with your partner(s), the legal lines of your business will refer to the partnership statement and not the state's standards. You can find more information at the New Mexico Secretary of State » Partnerships. You will also have to file your profits come tax time, so having your books in order is very important (more on that below).
You are not obligated to register your business name in New Mexico, even if it is a DBA name.
Corporation:
To register your escort corporation in New Mexico you'll need to file your Articles of Incorporation with the New Mexico Public Regulation Commission. You'll include information on the amount of shares for the corporation and the incorporating persons, and include a $50 filing fee. Because of the intricate information required when starting a corporation, it is highly recommended that you seek advice from a business lawyer and accountant.
Registering your Articles of Incorporation will register your business name.
LLC:
To register your escort LLC in New Mexico, you'll need to file your Articles of Organization with the New Mexico Public Regulation Commission. The form includes basic information about the members and managers of the LLC, and requires a $50 filing fee.
Registering your Articles of Organization will register your business name.
Step six: Register for your federal and New Mexico state taxes
There are a few basic types of taxes small businesses in New Mexico may register for.
- Individual Income Tax: If you're a sole proprietor or LLC, you'll file your business profits/losses in a Schedule EZ form that will go along with your personal income tax 1040 form. For more information go to IRS.gov. More information on personal income taxes in New Mexico can be found at the New Mexico Taxation and Revenue Department.
- Business Taxes: Corporations in New Mexico (and in this scenario, this includes any business with a federal EIN number) must pay corporate taxes. More information can be found at the New Mexico Taxation and Revenue Department—Corporate and Franchise Tax.
- Unemployment Insurance: All businesses with employees pay unemployment insurance to safeguard the state's unemployed. More information can be found at the New Mexico Department of Workforce Solutions.
- Withholding Taxes: Employers must withhold taxes from employees for their personal income taxes on a federal and state level. More information, online filing and downloadable forms can be found at the New Mexico Taxation and Revenue Department—Wage Withholding Tax.
- Workers Compensation: If you have employees, you'll have to pay Workers' Compensation. More information, including a downloadable guidebook, can be found at the State of New Mexico Workers' Compensation Administration.
- Self-Employment Taxes: If you own and operate your business and are not paid as an employee, you'll need to file your own self-employment taxes for social security and Medicaid. This is particularly true for sole proprietorships, general partnerships and LLCs. You can find this Schedule C / 1040 form and get more information at IRS.gov. Get more information at IRS.gov » Self-Employment Tax.
More information, registration and online filing can be found at the New Mexico Taxation and Revenue Department.
Step seven: Get necessary licenses and permits
There's no specific "escort license" in New Mexico, and chances are you won't need any other permits to conduct your escort service, but it's a good idea to run your city through the IRS's Permit Me tool and get more information about specific filing from their site.
For more information about registering an escort business in New Mexico, consider the following online destinations:
Find out how to register an escort business in each state of the USA.
Related resources:
Please note: Dating.com is not a legal service, nor are we tax advisors or accountants. We do offer you what we consider our best advice, but if at all in doubt, please consult a professional.
