How to Start a Native Arts, Jewelry or Trading Post Business in New Mexico: Indian Arts and Crafts Act Rules

If you plan to sell Native American arts, jewelry or crafts in New Mexico, you work under two sets of rules at once. The federal Indian Arts and Crafts Act of 1990 and the New Mexico Indian Arts and Crafts Sales Act (NMSA 30-33) target the same problem: goods offered or sold in a way that falsely suggests an Indian or a particular tribe made them. Get that part right and the rest of the setup, from choosing an entity to collecting gross receipts tax, is routine paperwork. A New Mexico trading post that takes items from many makers carries the most exposure, but a single studio or storefront faces the same core rules.

Disclaimer: This article is informational, not legal or tax advice. Statutes are amended, and the penalty grading described below should be checked against the current statute text. Talk to a New Mexico attorney and a CPA before you sign consignment contracts, pick an entity for a business with employees or inventory loans, or sell across state lines.

What you need before you start

• Your legal name, home address, and the address where you will sell or store goods
• A proposed business name, checked against the New Mexico Secretary of State business search at https://enterprise.sos.nm.gov/search
• A federal Employer Identification Number (EIN) from the IRS, which is free. Ask a CPA whether you need one as a sole proprietor.
• A payment method for state filing fees, which are paid online through the SOS Enterprise Business Filing System
• A supplier file template for every maker (described in Step 8)
• A written consignment or purchase agreement for any artisan whose work you will sell
• A tag and listing template that states materials, maker and origin accurately
• A New Mexico registered agent, if you form an LLC or corporation

Step 1: Sort your inventory before you name the business

Divide every item into one of three groups. The first group is work by Native makers whose identity and tribal affiliation you can document. The second is work made by you or your staff in a Native-inspired style. The third is imported or mass-produced goods. Only the first group can carry Native-made language. The second group needs a plain description, such as “designed and made by [your name],” that does not imply tribal production. The third group should be labeled as imported or made elsewhere. Sorting first also tells you which items need paperwork before they reach the shelf.

Step 2: Learn the three layers of law

The federal Act. The Indian Arts and Crafts Act of 1990 makes it illegal to offer or sell goods in a manner that falsely suggests they are made by an Indian or a particular tribe. The Indian Arts and Crafts Board at the U.S. Department of the Interior (doi.gov) publishes the enforcement information. For a first offense, the Act sets penalties of up to $250,000 and up to 5 years for individuals, and up to $1,000,000 for businesses.

The New Mexico Act. The New Mexico Indian Arts and Crafts Sales Act (NMSA 30-33) is enforced by the Attorney General or a district attorney. Enforcers can seek injunctions, restitution and civil penalties of up to $5,000 per willful violation. Willful violations are crimes graded by the value of the goods under 30-33-9, as amended in 2010. Confirm the current grading with the Attorney General before you rely on it, because the grading tiers are the part most likely to change.

The Unfair Practices Act. Misrepresenting goods can also support a claim under New Mexico’s Unfair Practices Act, even when the item does not fall squarely within the Indian arts statute. A misleading tag can therefore create exposure under more than one law.

Step 3: Choose a business structure

New Mexico treats the three common structures differently at the state level.

• Sole proprietorship: No state formation filing. You still need the tax registration in Step 6.
• LLC: Articles of Organization cost $50 through SOS Enterprise. An LLC files no annual or biennial report with the Secretary of State and owes no LLC franchise tax. An LLC taxed as a default pass-through does not owe the $50 corporate franchise tax.
• Corporation: Articles of Incorporation cost $100. The first corporate report costs $25 and is due within 30 days after the certificate of incorporation is issued, then biennially on or before the fifteenth day of the fourth month after the taxable year ends. The corporation also owes the $50 annual corporate franchise tax on form CIT-1 and a flat 5.9% corporate income tax on taxable income for tax years beginning on or after January 1, 2025.

An LLC that elects to be taxed as a corporation files form CIT-1 and owes the $50 franchise tax. The choice between these structures is a tax and liability decision, so have a CPA or attorney review it before you file.

Step 4: Choose and protect your name

An LLC name must include “limited liability company,” “limited company,” or one of the abbreviations LLC, L.L.C., LC or L.C. The abbreviations “ltd.” and “co.” are allowed for “limited” and “company.” The name must be distinguishable from existing New Mexico entities, foreign entities authorized in New Mexico, and reserved names. If the LLC will trade under a different name, state that name in the Articles of Organization.

You can reserve a name for $20 for 120 days through SOS Enterprise at https://enterprise.sos.nm.gov/. The reservation cannot be renewed, so file the formation documents within that window if you want to keep the name.

New Mexico has no statewide DBA or assumed-name registration. A sole proprietor or general partnership trading under a shop name does not file one with the state. Check your city or county, your bank and your marketplace accounts for their own name rules.

Step 5: File the formation documents and appoint a registered agent

All business filings are online through the SOS Enterprise system. The Secretary of State does not publish a standard turnaround time. Every filing is reviewed before the certificate is issued, and you receive an email if it is approved, rejected or needs correction. Build time for a correction into your opening schedule.

Expedited service is available by rule. Same business day service costs $150 if the filing is received before 2:00 p.m., and filings received later move to the next business day. Two business day service costs $100. Expedite fees are paid separately and are nonrefundable.

Every LLC must maintain a registered office in New Mexico and a registered agent for legal papers. The office can be your principal place of business. The agent must be an individual New Mexico resident, or a business with a New Mexico place of business at the registered office address. Changing the registered agent or office costs $20 for an LLC and $25 for a corporation. An agent who stops serving without a successor can leave you without notice of a lawsuit, so keep the appointment current.

Step 6: Get a Business Tax Identification Number

New Mexico issues no general statewide business license. What you do need is a Business Tax Identification Number (BTIN), which replaced the older CRS number. The BTIN is free from the Taxation and Revenue Department (TRD) at https://www.tax.newmexico.gov/. It is a tax registration, not a license, and it is how you report gross receipts tax. The TRD page at https://www.tax.newmexico.gov/businesses/who-must-register-a-business/ explains who must register.

New Mexico has no sales tax. Instead, it imposes a gross receipts tax on the seller’s receipts. The state rate is 4.875%. Combined state and local rates run from 5.25% to 9.4375% under the schedule effective July 1, 2026 through June 30, 2027, depending on where the sale is made. Ask TRD how the tax applies to your situation, including consignment sales, online orders shipped out of state and sales to tribal members or on tribal land, since special rules may apply.

Step 7: Check city, county and activity licensing

Cities and some counties charge their own flat annual business registration. The amounts and rules vary by jurisdiction, so confirm the requirement with the city or county clerk where your store, studio or booth sits. Do not treat that registration as a state license. If your specific activity requires a license, the Regulation and Licensing Department handles activity-specific licenses. Retail space also raises zoning and occupancy questions that are separate from anything in this article.

The New Mexico Small Business Development Center (https://www.nmsbdc.org/) and the SBA’s New Mexico district office (https://www.sba.gov/district/new-mexico) can help you map the local requirements for your town.

Step 8: Build a supplier file for every maker

This file is your evidence of good faith. For each artisan, record the legal name, contact details, and the tribe or pueblo affiliation the maker states. Where the maker has one, keep proof such as a tribal enrollment card or an artisan certification issued by a tribe. Add the date you received each piece, a description, the price, photographs, and an invoice or consignment agreement signed by the maker.

Put a warranty of origin in every agreement. The maker should state that the work is theirs, that the tribal or artisan claims are true, and that they will tell you promptly if those claims change. Keep the file for as long as you sell the item and for a period you confirm with your CPA or attorney. Store the file in a way that you can retrieve by item number, because an investigator will ask for the specific piece, not your general records.

Step 9: Write tags and listings that match the file

Every tag, shelf card, website listing and marketplace entry should match the supplier file. Words such as “authentic,” “genuine,” “traditional” and any tribal name are the most common sources of trouble. Use them only when the documentation supports them.

Wording	Verdict
“Hand-built by [name], enrolled member of [tribe], see supplier file”	Acceptable if the file supports it
“Designed and made by [your name], Native-inspired style”	Acceptable if you are the maker and the wording does not imply tribal production
“Navajo style” on an imported or machine-made item	Not acceptable. It suggests Native production.
“Authentic Zuni silver” with no documentation	Not acceptable. The claim has no support in your file.
“Imported” or “made elsewhere” on a non-Native item	Acceptable and the safest choice

Step 10: Set terms for consignment and trading post sales

A New Mexico trading post that accepts goods from many makers vouches for items it did not make. Your written agreement should state who made each item, what the maker warrants, who handles returns, how and when you pay the maker, and that the maker must not misrepresent the work. A contract cannot override the federal or state Act, but it documents that you asked the right questions. Ask an attorney to review the template once, then use it for every maker.

Also decide who reports and pays gross receipts tax on consignment sales, and get that answer from TRD in writing if you can. Do not assume the answer is the same as for your own inventory.

Tips and common mistakes to avoid

• Assuming a statewide DBA exists. New Mexico has no statewide DBA or assumed-name registration. Check your city and bank instead.
• Confusing a city registration with a state license. The city or county registration does not replace the BTIN or any activity license.
• Using marketplace tags you did not verify. Pre-written product descriptions often include tribal language. Edit them against your file.
• Omitting the required words from an LLC name. A name without “limited liability company,” “limited company” or an accepted abbreviation will be corrected or rejected.
• Letting the registered agent lapse. If the agent stops serving, you may miss legal papers.
• Missing the first corporate report. It is due within 30 days after the certificate is issued.
• Relying on verbal assurances from suppliers. A spoken claim of tribal membership is not documentation.
• Copying a competitor’s tags. If the competitor is wrong, you inherit the same exposure.
• Ignoring the tax registration. Selling without a BTIN and reporting gross receipts tax creates a separate compliance problem.

Expected results

Careful documentation and accurate labeling are not guaranteed to prevent every complaint or inquiry, but they should put you in a stronger position if a buyer, a maker or an enforcement office asks questions. Sellers who keep supplier files, match their tags to those files, and register with TRD are generally better placed to answer questions quickly. Results will depend on your product mix, your suppliers and how you run the shop.

Fees at a glance

Item	Cost	Where
LLC Articles of Organization	$50	SOS Enterprise
Name reservation (120 days, not renewable)	$20	SOS Enterprise
LLC annual or biennial report	None required	Not applicable
Corporation Articles of Incorporation	$100	SOS Enterprise
Corporate report (biennial)	$25	SOS Enterprise
Corporate annual franchise tax (form CIT-1)	$50	Taxation and Revenue Department
Registered agent change, LLC / corporation	$20 / $25	SOS Enterprise
Expedited filing, same business day	$150	SOS Enterprise
Expedited filing, two business days	$100	SOS Enterprise
Business Tax Identification Number (BTIN)	Free	Taxation and Revenue Department
City or county business registration	Varies. Confirm locally.	City or county clerk
Statewide DBA or assumed-name filing	None exists	Not applicable

Where to confirm current details

• New Mexico Secretary of State: https://www.sos.nm.gov/business-services/ and SOS Enterprise at https://enterprise.sos.nm.gov/ for filings
• Taxation and Revenue Department: https://www.tax.newmexico.gov/ for the BTIN and gross receipts tax
• New Mexico Attorney General: confirm the current NMSA 30-33 grading and enforcement guidance directly with the office
• Indian Arts and Crafts Board, U.S. Department of the Interior: doi.gov
• New Mexico Small Business Development Center: https://www.nmsbdc.org/

This article is informational, not legal or tax advice. Consult a qualified New Mexico attorney and CPA for your specific situation, especially before signing consignment agreements or choosing an entity structure.