New Mexico Contractor License Guide: CID Classifications, GB-2, GB-98 and Who Needs a License

If you plan to build, repair or install for pay in New Mexico, you need to know whether the work requires a state contractor license, which class fits your scope, and what the state expects before you can bid a job. This guide covers the new mexico contractor license system as it applies to the Construction Industries Division (CID) of the Regulation and Licensing Department (RLD), explains the license classes, and walks through who is exempt. It also covers the entity filings you need before you apply, because the license is issued to a business, not to you personally.

This content is informational, not legal or tax advice. Licensing rules, fees and exemptions can change, and some details below must be confirmed directly with CID. For a complex situation, such as a multi-trade operation, a company with out-of-state owners, or a dispute over whether an exemption applies, talk to a qualified New Mexico attorney or CPA.

Who Licenses Contractors in New Mexico

Contractors are licensed by the Construction Industries Division of the Regulation and Licensing Department under the Construction Industries Licensing Act. This is the agency you need for the new mexico construction industries division application, class questions and renewals. Search for the CID page on the RLD website to confirm current contact details and forms.

New Mexico does not issue a general business license. The state's own business navigator lists three steps that apply to nearly every company: register the legal entity with the Secretary of State, obtain tax ID numbers through the Taxation and Revenue Department, and obtain any activity-specific license through the Regulation and Licensing Department. A contractor license is that third, activity-specific step. It is separate from any city or county registration.

The License Is Issued to a Business, Qualified by an Individual

This is the point most first-time applicants miss. The contractor license is issued to a business entity, such as an LLC or corporation. The entity is then qualified by an individual qualifying party who holds a qualifying party certificate. That person must have the experience and exam results for the class of work the company performs.

• Qualifying party exam: a passing score is 75%.
• Journeyman certificates: electrical, mechanical and plumbing work requires journeyman certificates for the workers doing that work, not only a qualifying party.
• Experience: some classes carry a specific experience requirement. GB-2 requires two years at foreman level, and MM-3 requires four years.

If the qualifying party leaves the company, the entity's license is affected, so plan for a replacement before the current qualifier departs.

New Mexico Contractor License Classes Under 14.6.6 NMAC

Rules under 14.6.6 NMAC define the classes. Choose the class that matches the work you will actually perform, because the class limits what your company can bid and build.

Class	Scope	Notes
GB-2	Residential building, up to four family units	Requires two years of foreman-level experience
GB-98	General building	Broadest building class for commercial and multi-family work
GA	Asphalt and concrete	Paving, flatwork and related concrete work
GF	Fixed works	Structures and fixed works that are not general building
GS	Specialties	Trade specialties classified under the rule
EE-98	Electrical	Journeyman certificates required for electrical workers
MM-1	Plumbing	Journeyman certificates required for plumbing workers
MM-2	Gas	Gas fitting work
MM-3	HVAC	Requires four years of experience
MM-98	Mechanical	Mechanical work; journeyman certificates required

Solar installers should check this carefully. New Mexico has no GS-3 solar class. Solar work is not a separate license class under the rule, so ask CID which existing class covers your scope before you apply. Do not assume that a general building or electrical class automatically covers a solar array job.

Who Needs a License and Who Is Exempt

The rule sets no dollar threshold that automatically triggers the license requirement. In practice, the question is whether the work falls within the Construction Industries Licensing Act and whether an exemption applies. Do not assume that a small job is exempt just because it is small.

NMSA 60-13-3 lists the main exemptions:

• Owner building his or her own single-family home. The owner can build without a license for an owner-occupied single-family home.
• Casual, minor work by an individual. An individual doing handyman repairs can work without a license on one project at a time, provided the work totals $7,200 or less a year. This exemption does not cover electrical, plumbing or gas fitting work. Confirm the current threshold with CID before relying on it for planning, because it is an annual limit that must be tracked.
• Annual declaration. A person relying on the casual work exemption must file an annual declaration with CID.
• Advertising. Bars advertising as a contractor are not exempt. If you advertise as a contractor, you need the license.

The handyman exemption is the one most often misapplied. If you bill more than the annual limit, hire a subcontractor, or take on electrical or plumbing work, the exemption does not protect you. Keep a running total of your annual jobs if you rely on it.

The $10,000 Surety Bond

A contractor license requires a $10,000 surety bond under 14.6.3.8 NMAC. Your surety company issues the bond, and you submit proof with your application. Bond premiums depend on your credit and bonding history, so ask a surety agent for a quote early. CID does not set the premium.

Application and Renewal Fees

The fee schedule in 14.5.5.8 NMAC sets two charges:

• Application fee: $30.
• Annual fee: $100 a year for GA-98, GB-2, GB-98, GF-98, EE-98 and MM-98, or $50 a year for the other classes.

The rule amounts can change, so check CID for current figures before you budget. Also confirm any exam fees, insurance requirements and processing times with CID, because those depend on the current application package.

Set Up the Business Entity First

Because the license is issued to an entity, form the entity before you apply. These are the state filings that matter for a contractor.

• LLC: File Articles of Organization with the New Mexico Secretary of State for a $50 filing fee. The name must include "limited liability company," "limited company," or an abbreviation such as LLC or L.C., and must be distinguishable from existing New Mexico entities. An LLC files no annual or biennial report.
• Corporation: File Articles of Incorporation for a $100 filing fee. A corporation files a Corporate Report every two years for $25, the first within 30 days after the certificate of incorporation is issued, and owes a $50 annual corporate franchise tax reported on form CIT-1. An LLC that is taxed as a default pass-through does not owe that franchise tax.
• Expedited service: Under 12.3.1.9 NMAC, same business day service costs $150 when received before 2:00 p.m., and two business day service costs $100. Expedited fees are paid separately and are nonrefundable. The Secretary of State does not publish a standard turnaround, so confirm current timing on the SOS portal.
• Registered agent: Every LLC needs a registered office in New Mexico and a registered agent for service of process. The registered office may be the same as your principal place of business. Changing the agent or office costs $20 for an LLC and $25 for a corporation.

File online through the SOS Enterprise Business Filing System at enterprise.sos.nm.gov. You can search existing names at enterprise.sos.nm.gov/search before you file. A name reservation costs $20 and lasts 120 days, and it cannot be renewed.

Trade Names and DBAs

New Mexico has no statewide DBA or assumed-name registration. A sole proprietor, partnership, LLC or corporation does not file a trade name with the state. If an LLC will trade under a name other than its legal name, state that name in the Articles of Organization. Confirm with CID how a trade name should appear on your contractor license application, because the license is issued to the entity and the process for displaying a trade name should be confirmed before you print vehicles or contracts.

Tax Registration Without a Sales Tax

New Mexico has no sales tax. It has a gross receipts tax, which is imposed on the seller. Contractors register with the Taxation and Revenue Department (TRD) to obtain a Business Tax Identification Number (BTIN). The BTIN is free. It is a tax registration, not a license, so getting one does not satisfy the contractor licensing requirement.

The state gross receipts tax 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. Because rates vary by location, confirm the rate for each job location with TRD. Register at tax.newmexico.gov. The TRD business registration page, who must register a business, explains who needs to register.

If your company is a corporation that elects to be taxed as one, it also files form CIT-1 and owes the $50 annual corporate franchise tax. Those tax questions should go to a CPA.

City and County Registration

Cities and some counties charge their own flat annual business registration on top of state requirements. Albuquerque, Las Cruces, Rio Rancho, Santa Fe and other cities set their own rules and fees, and some apply to contractors working inside city limits. Check the city or county where you will work and where you are based. The state license does not cover local registration, and local registration does not substitute for the state license.

Step-by-Step: Getting Licensed in New Mexico

1. Choose your classes. Match each class to the actual scope of work. Confirm solar and other unusual work with CID first.
2. Form the entity. File Articles of Organization or Incorporation through the SOS Enterprise portal.
3. Appoint a registered agent and confirm the registered office for the entity.
4. Get a BTIN from TRD at no charge for gross receipts tax reporting.
5. Identify your qualifying party and confirm that person meets the experience requirement for each class.
6. Schedule and pass the qualifying party exam. A passing score is 75%.
7. Obtain journeyman certificates for workers doing electrical, mechanical or plumbing work.
8. Secure a $10,000 surety bond.
9. Apply with CID and pay the $30 application fee plus the annual fee for each class.
10. Register locally with any city or county where you will work.

What to Confirm With CID Before You Apply

Several details in this guide should be checked directly with the agency before you commit money or sign contracts. Ask CID to confirm:

• Current application, renewal and exam fees, and any change to the annual fee schedule.
• The current annual casual-work threshold under the exemption, and how the annual declaration is filed.
• Which class covers solar installation work, since no GS-3 solar class exists.
• How a trade name should appear on the license application.
• Insurance and workers' compensation requirements that apply to your company.
• Current processing times and exam scheduling.

Relying on an outdated fee or class description is an easy mistake, and CID's current published requirements control. Ask for written confirmation of any answer that affects your bid or budget.

When to Get Professional Help

Simple sole-trade handyman work may need no license, but a company that bids commercial jobs, performs multiple trades, or relies on a qualifying party from outside the company should have an attorney review the entity and licensing structure. A CPA can advise on gross receipts tax, the corporate franchise tax and the difference between entity types. For financing, bonding and small business advising, the New Mexico Small Business Development Center offers free counseling.

Reminder: this guide is general information about New Mexico contractor licensing. It is not legal or tax advice. Confirm current requirements with the Construction Industries Division and the other agencies named above before you act.