What Happened to My CRS Number?
Every New Mexico business is required to have a seller’s permit (which used to be called a CRS Number). This is still true of partnerships, LLCs, corporations, nonprofits, and many sole proprietorships. However, as of 2021, these numbers have now been replaced by New Mexico Business Tax Identification Numbers (NMBTIN). This is part of New Mexico’s attempt to streamline their online business registration process. A NMBTIN is a unique taxpayer ID issued by the New Mexico Department of Taxation and Revenue. It is used to report withholdings, gross receipt taxes, and any compensation you may receive.
This is different from your Federal Employer Identification Number, which is also required for most business types. (Many sole proprietors do not necessarily need a FEIN, unless they meet certain criteria. We can discuss this with you, and help you decide if you need a FEIN.)
How Do I Apply for a BTIN?
You can apply for a seller’s permit on the NMDTR’s website, through the Taxpayer Access Point. You will then be given one or more BTINs. (The state will assign individual BTIN numbers for different types of tax reporting, if they apply to your business.)
Applying for your first BTIN is a fairly simple process. It becomes more complicated if you want to make any changes to your business. For example, if you decide to convert your sole proprietorship into an LLC, you should first dissolve your old company (which likely used your Social Security number as your seller’s permit number). Then you will form a new LLC, and be assigned a new BTIN.
If you decide to remain a sole proprietorship, you should still register in the new system. You will need a BTIN to file Gross Receipts Taxes, and putting this off might cause problems during tax season. Remember that a BTIN is issued by the state of New Mexico, and does not eliminate your need for a federal EIN. (Anyone who employs people still needs a FEIN.)