How to Start an Electrical Contracting Business in New Mexico: EE-98, ER-1 and Journeyman Cards

If you want to bid electrical work in New Mexico under your own company name, you need a contractor license from the Construction Industries Division (CID) of the Regulation and Licensing Department. The license class depends on the work you plan to do. Most new electrical businesses apply for the EE-98 electrical contractor license, and residential wiring firms often look at the ER-1. Employees who do the wiring may also need individual journeyman certificates such as EE-98J. These are separate credentials, and mixing them up is one of the most common early mistakes.

This article is informational content, not legal or tax advice. Fees, rules and agency procedures change. Confirm every figure below with the agency named before you budget or file. For complex situations, talk with a New Mexico attorney and a CPA.

Quick answer: which license do you need?

Start by matching the license to the work. The three contractor classes are:

• EE-98 electrical contractor license. Covers electrical work of 5,000 volts or less. This is the license most electrical businesses hold.
• ER-1 residential wiring contractor license. Covers residential buildings of four units or fewer. If your work includes larger apartment buildings, you need to look beyond the ER-1.
• EL-1 license. Covers work over 5,000 volts. Confirm the scope and requirements with CID before you plan around it.

A journeyman certificate is not a contractor license. EE-98J and the other journeyman certificates are individual credentials that let the holder work under a licensed contractor. A journeyman card alone does not let you run your own electrical company or sign contracts as one.

What you need before you start

Gather these items before you file anything. Missing one usually means a rejected filing and a second round of fees.

• A chosen business name, checked against the state business search at enterprise.sos.nm.gov/search
• Formation documents: Articles of Organization for an LLC, or Articles of Incorporation for a corporation
• A registered office and a registered agent for service of process in New Mexico
• A federal employer identification number (EIN) from the IRS, if you plan to hire employees
• A Business Tax Identification Number (BTIN) from the Taxation and Revenue Department
• Written experience records for yourself and for any journeymen who will work under your license
• Journeyman certificates for everyone who will do electrical work under your company
• A budget that includes the application fee, the license fee and any exam costs, using the current CID schedule
• Questions for CID and your insurance agent about the liability and other coverage your license class requires

Step 1: Choose the license class that matches your work

Write down the three types of jobs you expect to bid in the first year. If most of your work is houses, apartments, or remodels of four units or fewer, the ER-1 may fit. If you plan to bid commercial tenant improvements, service upgrades, or any work above the residential limit, the EE-98 is usually the starting point.

Do not rely on a general rule of thumb. Ask CID to confirm whether your planned work falls under the license class you pick, especially for mixed residential and light commercial jobs. A license that does not cover a job can expose you to enforcement action, so this decision is worth an hour of checking.

Step 2: Form the business entity

Most electrical contractors form an LLC. Here is what each common entity costs and requires under current New Mexico rules:

• LLC: The Articles of Organization filing fee is $50. The name must include "limited liability company," "limited company," or an accepted abbreviation such as LLC or L.L.C. An LLC files no annual or biennial report with the Secretary of State.
• Corporation: The Articles of Incorporation filing fee is $100. The first Corporate Report is due within 30 days after the certificate of incorporation is issued, costs $25, and is then filed biennially. A corporation also owes a $50 annual franchise tax reported on form CIT-1.

All business filings are online only through the SOS Enterprise Business Filing System. The Secretary of State does not publish a standard turnaround, and every filing is reviewed before the certificate issues. You will get an email if the filing is approved, rejected, or needs correction.

Some useful details on the formation side:

• Name reservation: You can reserve a name for $20 for 120 days. The reservation cannot be renewed.
• Expedited filing: Under 12.3.1.9 NMAC, same business day service costs $150 when the request arrives before 2:00 p.m., and two business day service costs $100. Expedited fees are paid separately and are nonrefundable.
• Registered agent: Every LLC needs a registered agent who is a New Mexico resident, or a business with a New Mexico place of business at the registered office address. Changing the registered office or agent costs $20 for an LLC and $25 for a corporation.
• Trade names: New Mexico has no statewide DBA or assumed-name registration. If your LLC will trade as a different name, state that name in the Articles of Organization.

Do not try to save money by skipping the trade name step. A DBA you use in your truck lettering or on contracts that is not stated in the Articles can create a mismatch with the name you are licensed under.

Step 3: Register for taxes

Register with the New Mexico Taxation and Revenue Department (TRD) at tax.newmexico.gov. The BTIN is free and is a tax registration, not a license. It lets you report gross receipts tax, and it is the number you will need for many business accounts.

New Mexico has no sales tax. Instead, the gross receipts tax falls 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. Electrical contracting billing can be complicated because the tax may apply to your receipts differently depending on the type of job. Ask your CPA how the gross receipts tax applies to your contracts before you send your first invoice.

If you choose to have an LLC taxed as a corporation, you file form CIT-1 and owe the $50 annual corporate franchise tax. An LLC taxed as a default pass-through does not owe that tax. Corporate income tax is a flat 5.9% for taxable years beginning on or after January 1, 2025.

Step 4: Check city and county registrations

New Mexico has no general statewide business license. The state's own guidance lists three universal steps: register the entity with the Secretary of State, get tax ID numbers from TRD, and get any activity-specific license from the Regulation and Licensing Department. Cities and some counties can require their own local registration.

Check the city and county where your shop is and where you will work. Cities such as Albuquerque, Las Cruces, Rio Rancho and Santa Fe are common job locations for electrical firms, but each jurisdiction sets its own rules. Local registrations are typically flat annual charges. Confirm the current amount with the clerk or business office for each place you plan to operate, because amounts vary by jurisdiction.

Step 5: Apply to CID for the contractor license

CID administers electrical contractor licensing under the Regulation and Licensing Department rules at rld.nm.gov. The contractor fee rules are in 14.5.5 NMAC, which lists a $30 application fee and an EE-98 license fee of $100 per year, or $200 for two years, in the rule text.

Treat those numbers as a starting point, not a final quote. Check the current CID fee schedule before you budget, because fees and renewal options can change. The rule text is not always the same as the current fee schedule posted by the agency.

Confirm these items with CID before you submit:

• The experience and qualifying-individual requirements for the license class you chose
• Any examinations you must pass, including what they cover and where they are given
• Whether you need a bond, insurance certificate or other proof of financial responsibility
• How your application is reviewed, and how long it typically takes

Agency staff can give you the current experience hours, exam details and checklist.

Step 6: Plan for journeyman certificates and reciprocity

Your electricians will need their own credentials. A journeyman certificate such as EE-98J lets an individual work under a licensed contractor. Your company holds the contractor license, and the journeyman holds the individual certificate.

If an experienced electrician already holds a journeyman certificate in another state, New Mexico offers reciprocity for EE-98J only. The applicant needs 8,000 hours of experience and must pay a $75 fee to PSI. The reciprocity program names these ten states:

• Alaska
• Arkansas
• Colorado
• Idaho
• Montana
• Nebraska
• Oklahoma
• South Dakota
• Texas
• Wyoming

Reciprocity does not apply to every credential, and it does not apply to contractor licenses. Confirm eligibility with CID before you hire someone expecting them to transfer a card from another state.

Step 7: Do not assume a small-job exemption

Many people assume that small electrical repairs fall under a handyman exemption. They do not. The casual and minor work exemption in NMSA 60-13-3, which allows up to $7,200 a year with an annual declaration, does not cover electrical wiring, plumbing or gas fitting. If you bill for electrical work, plan on holding the right license from the first job.

Common mistakes to avoid

• Treating a journeyman card as a business license. The journeyman certificate covers the individual, not your company.
• Choosing the ER-1 for mixed projects. Residential buildings of four units or fewer are the ER-1 scope. Larger buildings and other work need a different license.
• Relying on the small-job exemption. The $7,200 annual exemption does not cover electrical wiring.
• Forgetting the corporate report deadline. A corporation must file its first Corporate Report within 30 days after incorporation. An LLC has no annual report, which can create a false sense that nothing is due.
• Using a trade name not stated in the Articles. New Mexico has no statewide DBA, so the name belongs in the formation documents.
• Budgeting from one old number. The $100 and $200 license fee figures come from the rule text. Check the current schedule before you commit.
• Skipping the local registration. A city or county flat annual charge can apply even when your state paperwork is complete.

Fee summary

Confirm each one with the agency before you budget.

Item	Amount	Where to confirm
LLC Articles of Organization	$50	SOS Enterprise
Corporation Articles of Incorporation	$100	SOS Enterprise
Corporate Report (biennial)	$25	SOS Enterprise
Corporate franchise tax (form CIT-1)	$50 per year	TRD
Name reservation (120 days, not renewable)	$20	SOS Enterprise
Expedited filing, same business day	$150	12.3.1.9 NMAC
Expedited filing, two business days	$100	12.3.1.9 NMAC
Change of registered agent or office (LLC)	$20	SOS Enterprise
Change of registered agent or office (corporation)	$25	SOS Enterprise
Business Tax Identification Number (BTIN)	Free	TRD
CID contractor application fee	$30	CID, confirm current schedule
EE-98 contractor license fee	$100 per year, or $200 for two years per rule text	CID, confirm current schedule
EE-98J journeyman reciprocity fee (paid to PSI)	$75	Confirm with CID

Expected results

A complete, accurate filing package gives you the best chance of moving through review without a correction cycle. Many owners find that the largest delays come from name conflicts, missing registered agent details and incomplete experience records rather than from the license itself. Because the Secretary of State does not publish a standard turnaround, build a buffer into your start date and consider the expedited options if you need a fast formation certificate.

Once your company and tax registrations are in place, you can typically begin planning your first bids. Your license status and journeyman certificates should be confirmed with CID before any crew starts work. Results depend on your experience, your chosen license class, and how quickly the agencies respond, so treat this timeline as an estimate to verify rather than a promise.

Final checklist

• Match the license class (EE-98, ER-1 or EL-1) to your planned work and confirm it with CID.
• Form the LLC or corporation, state any trade name in the Articles, and appoint a New Mexico registered agent.
• Calendar the corporate report if you incorporate, and remember that an LLC files no annual report.
• Get your free BTIN and plan gross receipts tax with a CPA.
• Check city and county registration in every place you will work.
• Confirm experience, exam, insurance and bond requirements with CID before you submit.
• Verify each journeyman certificate, and check reciprocity eligibility only for EE-98J.

This article is informational content, not legal or tax advice. Consult a qualified New Mexico attorney and a CPA for complex situations, including entity choice, tax treatment of contracts and any question about whether your work needs a particular license.