New Mexico CRS Identification Numbers
If you’ve just setting up your new business or you already have one, chances are you’ve somewhat familiar with the New Mexico CRS (Combined Reporting System). The State of New Mexico requires that each business entity be registered with a NM CRS Identification Number for taxation purposes.
Its quite easy to get a CRS number via an online form. As such, most people will file for a CRS and then go on with their business. Simple, right? Wrong!
Be careful. Getting your CRS number is easy, but updating it can be quite complex!
Business Registration Update Form
Take a sole-proprietorship business, for example. As a sole-proprietor, you will have one NM CRS Identification Number. Deciding that you want to change your business in any way means adjusting all of the information initially filed with the New Mexico Taxation and Revenue Department.
Many businesses find themselves in trouble when it comes time to update their NM CRS Identification Number. Changing circumstances can create problems for the CRS number you initially registered for. If you do intend to make changes to your business, a “Business Tax Registration Update” form is needed.
However this from cannot be completed online. This form must be printed out and mailed to the NM Taxation and Revenue department. There are specifics that go into filling out the form. Changes to an entity name still require that certain details be identical to the previous business.
The Business Tax Registration Update form can be used to change minor details of the company including the name so long as certain facts remain the same—specifically, same location, start date, business type, and principal.
Question & Answer
If you form a sole-member LLC and you decide to open a new venture, can you transfer or keep your same CRS number?
The answer is that it depends on several factors:
You can use the Business Tax Registration Update form to adjust simple details of your business information if you only intend to change information about the same existing company. This may be acceptable to the Tax and Revenue Department but is strongly discouraged as it can cause confusion for them and may result in you being taxed for both businesses. No one wants to get taxed twice!
Making sure your CRS Number is properly updated can help ensure that you are not taxed twice!
The best course of action is to dissolve one NM CRS Identification Number and apply for new one. The confusion can be avoided and the hassle of printing and filing an update would be unnecessary. The CRS application process is much easier now thanks to the online system.
Business Taxation is not something you should put off or guess on! If you require any additional assistance with New Mexico taxation issues, the contact information for the state is here. If you’d like help with forming a business, LLC, S-Corp., C-corp., etc., please feel free to contact our law firm. We would be happy to guide you through your new business venture.