How to Start a Plumbing Business in New Mexico: MM-1 License and Gas Fitting

Most people searching for a New Mexico plumbing license want three answers: which class they need, how much experience they must document, and what the paperwork costs. This guide answers all three, then walks through the order that works for going from a plan to a licensed, registered plumbing business.

Informational notice: This article is general information, not legal or tax advice. Licensing rules, fee schedules and agency procedures change. Confirm every figure with the agency named in each step before you pay or file. For entity choice, tax registration, partners, employees, or work outside New Mexico, talk to a New Mexico attorney or a CPA.

The short answer

Plumbing and gas fitting are licensed by the Construction Industries Division (CID) of the Regulation and Licensing Department (RLD) under 14.6.6 NMAC. The classes that matter most for a new business are:

• MM-1 plumbing: four years of experience required.
• MM-2 natural gas fitting: four years of experience required.
• MM-98 mechanical: covers MM-1 through MM-4 plus MS-3, MS-6, MS-12 and MS-14.

New Mexico has no general state business license. Your state obligations are a contractor license from CID, an entity filing with the Secretary of State if you form one, and a free Business Tax Identification Number (BTIN) from the Taxation and Revenue Department (TRD). Cities and some counties add their own registration on top of those.

Materials and records you will need

• A dated work history log: employers, job sites, types of work, dates, and a contact who can verify each entry. This is the document most likely to slow your application.
• Government-issued photo ID and a New Mexico mailing address.
• Your chosen business name and entity type: sole proprietorship, LLC, or corporation.
• A draft of your Articles of Organization or Articles of Incorporation, if you form an entity.
• A payment method for Secretary of State, TRD, CID and PSI fees.
• A list of the cities and counties where you plan to work.
• Current fee confirmations from CID and PSI. Confirm exam fees directly with PSI.

Step 1: Choose your license class first

Pick the class before you form anything, because it sets your experience requirement, your annual fee, and which journeymen can work under your license. A plumbing-only business starts with MM-1. A gas-only business starts with MM-2. Choose MM-98 only if you need the broader mechanical scope, since its annual fee is higher (see Step 5).

Journeyman cards are separate credentials for workers, not for the business owner. Under 14.6.6 NMAC, a JP plumber works under MM-1 or MM-98, a JG gas fitter works under MM-2 or MM-98, a JPG covers both plumbing and gas fitting, and a JPF is a pipe fitter. If you plan to hire, match each worker's card to the class you hold before you advertise.

Step 2: Document your experience

Experience is the step that delays the most applicants. The requirements are:

• MM-1 plumbing: four years.
• MM-2 natural gas fitting: four years.
• MS-3 septic tanks and sewer, and MS-6 lawn sprinklers: two years each.

Build the log now, while the details are fresh. For each job, record the employer, the work performed, the dates, and the person who can confirm it. Ask CID which proof it accepts, whether it uses employer verification forms, and whether a photo of a timesheet is enough. The agency's answer governs. Do not assume your records meet the standard until CID says so.

Step 3: Form your business with the Secretary of State

You can work as a sole proprietor without a state formation filing. Many contractors form an LLC instead. Whether that fits your situation is a question for your attorney. All New Mexico business filings are online only through the SOS Enterprise Business Filing System at enterprise.sos.nm.gov. The New Mexico Secretary of State's business services page is at sos.nm.gov/business-services.

For an LLC, the key facts are:

• Articles of Organization: $50 filing fee.
• Name: must include limited liability company, limited company, or LLC, L.L.C., L.C. or LC. It must be distinguishable from existing New Mexico entities and reserved names. If you will trade under a different name, state that name in the Articles.
• Name reservation: $20 for 120 days, not renewable.
• Expedited service: $150 for same business day service if received before 2:00 p.m. (next business day if later), or $100 for two business day service. Both are paid separately and are nonrefundable under rule 12.3.1.9 NMAC.
• Processing: The Secretary of State does not publish a standard turnaround. Filers are notified by email of approval, rejection or correction, and the certificate of organization issues after review.
• Annual report: none. New Mexico LLCs file no annual or biennial report with the Secretary of State.
• Registered office and agent: required. The agent must be a New Mexico resident, or a business with a New Mexico place of business at the registered office address.

If you form a corporation instead, the Articles of Incorporation cost $100. Corporations file a biennial Corporate Report at $25, with the first report due within 30 days after the certificate of incorporation is issued. A corporation also owes a $50 annual corporate franchise tax on form CIT-1, plus the flat 5.9% corporate income tax for taxable years beginning on or after January 1, 2025. An LLC taxed as a default pass-through does not owe the $50 franchise tax.

If you work as a sole proprietor under a trade name, there is no state DBA filing. New Mexico has no statewide assumed name registration, so there is no state fee. Ask your city or county whether it has its own trade name rules.

Step 4: Register with the Taxation and Revenue Department

Register at tax.newmexico.gov. The BTIN is free. It is a tax registration number, not a license, and it does not authorize you to perform plumbing work. Use the TRD page on who must register at who-must-register-a-business to confirm which registrations apply to you.

New Mexico has no sales tax. The gross receipts tax is imposed on the seller. The state rate is 4.875%, and combined state plus local rates run from 5.25% to 9.4375% under the schedule effective July 1, 2026 through June 30, 2027. Because the rate depends on where the job is, check the combined rate for each location you serve. Ask TRD how the gross receipts tax applies to labor and materials on your jobs before you set bid prices.

Step 5: Apply to CID and schedule your exam through PSI

Apply through CID and book your exam through PSI. The rule text in 14.5.5 NMAC sets annual contractor license fees at $100 a year for MM-98 and $50 a year for other classes such as MM-1, plus a $30 non-refundable application fee. Confirm the current amounts with CID before you pay, and confirm exam fees directly with PSI. Exam fees are set by PSI.

Before you file your LLC, ask CID two questions: whether the license is issued to you as an individual or to the business entity, and what happens to the license if the person named on it leaves the company. The answers may change how you structure the business, so get them before you pay the Secretary of State.

Step 6: Check city and county registration

Cities and some counties charge their own flat annual business registration in addition to state requirements. If you work in Albuquerque, Las Cruces, Rio Rancho, Santa Fe or any other city or county, call or visit that jurisdiction before you take a job there. Local amounts and forms vary, so get them from each city or county licensing office directly.

Step 7: Verify your license in the PSI search

Once your license issues, check it in the PSI license search. Do the same for any journeyman you plan to hire and for any subcontractor you bring onto a job. A license you cannot find in the search is a problem to resolve before work starts, not after.

Tips and common mistakes

• Treating the BTIN as a license. The free BTIN registers you for tax. It does not authorize plumbing or gas work.
• Assuming the handyman exemption covers your work. The $7,200 handyman exemption under 14.6.2.8 NMAC does not apply to plumbing or gas fitting work. A short gas line repair is not a handyman job.
• Forming the entity before you know who holds the license. Settle the licensing question with CID first.
• Picking a name without the required wording. A name such as Smith Plumbing fails the LLC name rule. Add LLC or another approved term.
• Letting a name reservation lapse. The $20 reservation lasts 120 days and cannot be renewed, so file the Articles inside that window.
• Expecting an LLC annual report. New Mexico LLCs file none with the Secretary of State. Corporations do have a biennial report.
• Buying MM-98 without needing it. It covers more classes, but its annual fee is higher under the rule text.
• Skipping city or county registration. State approval does not cover local requirements.
• Relying on old fee lists. Pull current amounts from each agency before you budget.

Fee summary

Item	Agency	Amount	Notes
LLC Articles of Organization	Secretary of State	$50	Expedited service adds $150 or $100
LLC name reservation	Secretary of State	$20	120 days, not renewable
LLC annual or biennial report	Secretary of State	None	Not required for LLCs
Corporation Articles of Incorporation	Secretary of State	$100	Corporations only
Corporate Report	Secretary of State	$25	Biennial, first within 30 days
Corporate franchise tax	Taxation and Revenue Department	$50 a year	Form CIT-1, corporations only
Business Tax Identification Number	Taxation and Revenue Department	Free	Tax registration, not a license
Contractor license, MM-1 or other classes	CID	$50 a year	Per 14.5.5 NMAC rule text; confirm with CID
Contractor license, MM-98	CID	$100 a year	Per 14.5.5 NMAC rule text; confirm with CID
Application fee	CID	$30	Non-refundable; confirm with CID
Exam fees	PSI	Confirm with PSI	Confirm with PSI
City or county registration	Local government	Confirm locally	Varies by jurisdiction

What to expect once you are licensed

A license may help you qualify for work that requires one, and it may help customers see you as a licensed contractor. It does not guarantee customers, income or any particular pace of growth. Results depend on your local market, your experience, your pricing, and how quickly you respond to leads. Treat the license as the entry requirement for legal work, not as a sales promise.

Official resources

• New Mexico Secretary of State business services: sos.nm.gov/business-services
• SOS Enterprise filing system: enterprise.sos.nm.gov
• SOS business entity search: enterprise.sos.nm.gov/search
• New Mexico Taxation and Revenue Department: tax.newmexico.gov
• TRD who must register: tax.newmexico.gov/businesses/who-must-register-a-business
• New Mexico Small Business Development Center: nmsbdc.org
• SBA New Mexico district office: sba.gov/district/new-mexico

Confirm the current CID and PSI pages before you apply. A New Mexico SBDC adviser can help you organize your records and plan the order of filings, and a New Mexico attorney or CPA can advise on entity choice and tax treatment.

Disclaimer: This article is informational only and is not legal or tax advice. Licensing requirements, fees and deadlines change. Verify each detail with the agency named before you act, and consult qualified professionals for your situation.