How to Start a Cleaning Business in New Mexico: Complete Guide

Starting a cleaning business in New Mexico typically costs $1,000 to $5,000 depending on your business structure and insurance needs. Each state has different rules for registration, taxes, and workers' compensation. This guide covers everything you need to start a cleaning business in New Mexico, including filing fees, licenses, insurance, labor laws, and local tips.

Why Start a Cleaning Business in New Mexico?

New Mexico has some of the lowest startup costs in the country. You can form a limited liability company for just $50. There are no annual report fees to worry about.

Tourism drives strong demand for cleaning services. Santa Fe and Taos attract millions of visitors each year. Vacation rental owners need reliable turnover cleaning.

The state has a growing population in Albuquerque. The cost of living is lower than most western states. This means lower expenses while you build your client base.

This guide covers every New Mexico step you need. You will learn about registration, taxes, insurance, and more.

New to Cleaning Businesses?

Read our general How to Start a Cleaning Business guide first. This New Mexico guide adds the state-specific steps on top of those basics.

How Do You Choose a Business Structure?

Your first decision is how to set up your business. New Mexico offers two main choices for new cleaning companies.

Sole Proprietorship

This is the simplest way to start. You begin doing business right away. No state filing is needed to operate.

If you want a different business name, register a trade name. You do this through the Secretary of State. This lets you operate under a name other than your own.

The downside is that you have no personal protection. Your personal savings are at risk if something goes wrong.

Limited Liability Company

A limited liability company is the better choice. It keeps your personal money separate from your business. If a client sues, your personal savings stay protected.

File your Articles of Organization with the Secretary of State. You must do this online at enterprise.sos.nm.gov. Paper filings are no longer accepted.

The filing fee is only $50.

New Mexico does not require annual reports. This saves you time and money every year. Most states charge $50 to $200 per year for annual reports.

Our Recommendation

Choose a limited liability company. The $50 filing fee is one of the lowest in the country. You enter people's homes every day.

The liability shield protects your personal assets.

New Mexico Government Resources
  • sos.nm.govNew Mexico Secretary of State — business information
  • enterprise.sos.nm.govOnline business portal — file your limited liability company here

How Do You Get an Employer Identification Number and Tax Accounts?

An Employer Identification Number is a free number from the federal government. You need it to open a bank account and file taxes. Apply for free at the Internal Revenue Service website.

You get your number right away online.

Gross Receipts Tax

New Mexico uses a gross receipts tax instead of a sales tax. This tax applies to almost all services. Cleaning is fully taxable under this system.

The state base rate is 5.125 percent. Local governments add their own rates on top. The combined rate is usually 7 to 9 percent depending on your location.

This tax is on your business, not your customer. However, most businesses pass the cost along in their prices. You report and pay this tax to the Taxation and Revenue Department.

Register for a Combined Reporting System Number

You need a Combined Reporting System identification number. This lets you report and pay your gross receipts tax. Register through the Taxation and Revenue Department website.

You must file returns on a regular schedule. New businesses usually file monthly. You may switch to quarterly as your business grows.

State Income Tax

New Mexico has a state income tax. Rates range from 1.7 to 5.9 percent. This is based on your taxable income using progressive brackets.

Tax Resources
  • irs.govApply for a free Employer Identification Number (never pay for this)
  • tax.newmexico.govNew Mexico Taxation and Revenue Department — register and file taxes

What Licenses and Permits Do You Need?

New Mexico keeps business licensing simple. There is no state-level business license. But you still need to take a few steps.

No State Business License Required

New Mexico does not require a state business license. This is a big advantage for new business owners. One less step means you can start faster.

You still need your Combined Reporting System number. This handles your tax reporting. Think of it as your main state registration.

Local Business Licenses

Your city or county may require a local business license. Check with your city clerk or county office. Fees vary by location.

Albuquerque, Santa Fe, and Las Cruces each have their own rules. Contact your local government to confirm what you need.

No Special Cleaning License

New Mexico does not require a special cleaning license. There is no state-level janitorial permit needed. This makes it easier to start than in some other states.

License and Permit Resources
  • tax.newmexico.govRegister for your Combined Reporting System identification number

What Insurance Do You Need?

Insurance protects your business from one bad day. New Mexico has a friendly rule for small startups. Here is what you need.

  • General liability insurance — Covers damage and injuries at a client's home or office. Costs $400 to $1,200 per year. Every cleaning business needs this
  • Workers' compensation insurance — Only required when you have three or more employees. This includes part-time and seasonal workers. You can buy this from any private insurance company
  • Surety bond — Protects clients if an employee steals something. Not required by law but highly recommended. Costs $100 to $500 per year
  • Commercial auto insurance — Needed if you use a vehicle for business. Get coverage that protects you while driving to client homes
Startup Advantage: Workers' Compensation

You do not need workers' compensation until you have three or more employees. This saves hundreds of dollars when you are just starting out. Solo operators and two-person teams can skip this cost entirely.

For more details on each type of coverage, read our Cleaning Business Insurance Guide.

Insurance Resources

What Are New Mexico Labor Laws?

New Mexico has important worker protections. If you plan to hire, you must follow these rules from day one.

Minimum Wage

The New Mexico state minimum wage is $12.00 per hour. Some cities set higher rates. You must pay the higher of the state or local rate.

The rate depends on where your employee works. It does not matter where your business is based.

Here are the local minimum wages you should know:

  • Santa Fe — $15.00 per hour (adjusted each year by cost of living)
  • Las Cruces — $13.01 per hour
  • Albuquerque — State rate of $12.00 per hour applies

Check your city's website for the most current local rate.

Paid Sick Leave

New Mexico requires paid sick leave for all employees. This comes from the Healthy Workplaces Act. Workers earn 1 hour of sick leave for every 30 hours worked.

Employees can save up to 64 hours of sick leave per year. This applies even to part-time workers. You must track and provide this leave from the start.

Unemployment Insurance

The Department of Workforce Solutions handles unemployment insurance. You pay into this fund for each employee. The rate depends on your industry and experience.

Register through the Department of Workforce Solutions website.

Labor Law Resources
  • dws.state.nm.usNew Mexico Department of Workforce Solutions — wages and labor rules

What Safety Rules Apply in New Mexico?

New Mexico has its own state workplace safety program. It operates under the Occupational Health and Safety Bureau. This bureau is part of the New Mexico Environment Department.

Hazard Communication Program

You must keep Safety Data Sheets for every cleaning chemical. Train your workers on what chemicals they use. Show them how to handle products safely.

Explain what to do if there is a spill or skin contact.

Injury Prevention Program

Create a written safety plan for your business. It should cover how to report hazards. It should explain how you investigate injuries.

Include how you train workers on safe practices.

Common Cleaning Hazards

Cleaning workers face specific risks every day. Slips, falls, and chemical burns are the most common. Make sure your team knows how to use chemicals safely.

Provide gloves, eye protection, and proper footwear.

Safety Resources
  • env.nm.govOccupational Health and Safety Bureau — workplace safety program

How Do You Set Cleaning Prices in New Mexico?

New Mexico has a lower cost of living than most western states. Santa Fe commands higher prices. Albuquerque offers solid rates with lower overhead.

New Mexico Pricing Formula
Price = Labor + Supplies + Insurance + Gross Receipts Tax + Profit

Typical pricing ranges in New Mexico:

  • Albuquerque (hourly) — $25 to $45 per hour depending on the service
  • Santa Fe (hourly) — $25 to $50 per hour due to higher cost of living
  • Home cleaning (flat rate) — $100 to $345 for a standard 3-bedroom home
  • Deep cleaning — $180 to $450 depending on home size
  • Move-in or move-out cleaning — $200 to $500 or more
  • Office cleaning — $0.05 to $0.15 per square foot

Santa Fe and Taos command the highest prices. Albuquerque and Las Cruces are in the mid-range. Smaller towns have lower rates but also lower costs.

Remember to factor in the gross receipts tax. Combined rates run 7 to 9 percent depending on your city. Build this into your prices so it does not eat your profit.

Use our Price Calculator to find the right rate for your area. For detailed pricing methods, read our Pricing Guide.

New Mexico Cleaning Prices

For detailed city-by-city pricing data, see our full Cleaning Business Prices in New Mexico guide.

What Cleaning Niches Are Profitable in New Mexico?

New Mexico has unique cleaning niches that do well here. The state's market creates special opportunities.

Vacation Rental Turnover Cleaning

Santa Fe and Taos have a booming vacation rental market. Hosts need fast, reliable turnover cleaning between guests. This work is steady during tourist season.

Hosts will pay premium rates for dependable service.

Military Base Housing

New Mexico has several military bases. Kirtland Air Force Base is near Albuquerque. Military families move often and need move-in and move-out cleaning.

This niche provides consistent, repeat business.

Lab and Research Professional Homes

Los Alamos National Laboratory and Sandia National Laboratories employ thousands. These busy professionals need reliable home cleaning. They value quality and are willing to pay well.

Target these communities for higher-paying residential clients.

Bilingual Cleaning Services

New Mexico has a large Spanish-speaking population. Offering services in both English and Spanish gives you an edge. Many clients feel more comfortable in their first language.

This helps you reach a wider market than single-language competitors.

Seasonal Tip

New Mexico's dry climate means dust is a constant problem. Sell dust-focused deep cleaning services year-round. Homes near desert areas collect dust fast, and owners will pay extra for thorough removal.

How Do You Market a Cleaning Business in New Mexico?

Getting clients in New Mexico follows many of the same steps. A few strategies work especially well here.

Google Business Profile

This is your most important free marketing tool. Set it up with your city name, services, and photos. Ask every happy client for a Google review.

Most people search online before hiring a cleaning service.

Nextdoor and Local Facebook Groups

New Mexico residents are active on Nextdoor and Facebook groups. Join groups in your service area. Share helpful cleaning tips.

When someone asks for a cleaner, your name will come up.

Partner with Vacation Rental Hosts

Santa Fe and Taos have thousands of vacation rentals. Reach out to hosts on rental platforms. Offer them special rates or fast turnaround times.

One strong partnership can keep you busy all season.

Bilingual Marketing

Create your website and materials in English and Spanish. This reaches more potential clients. It also builds trust with Spanish-speaking families.

Few competitors offer this, so you stand out right away.

For a complete marketing plan, read our Marketing Your Cleaning Business guide. Also read How to Get Cleaning Clients Fast.

How Much Does It Cost to Start in New Mexico?

New Mexico is one of the cheapest states to start a cleaning business. No annual reports and a low filing fee keep costs down.

  • Limited liability company filing — $50 (one-time, through the Secretary of State)
  • Annual report — Not required in New Mexico (saves you money every year)
  • Combined Reporting System registration — Free through the Taxation and Revenue Department
  • Local business license — Varies by city
  • General liability insurance — $400 to $1,200 per year
  • Workers' compensation — Only required at 3 or more employees (from private insurers)
  • Cleaning supplies and equipment — $200 to $500 to start
  • Marketing (initial) — $100 to $500
Solo Operator First-Year Estimate
$800 to $2,400 (no employees)
With Employees First-Year Estimate
$4,000 to $10,000 (includes workers' compensation and higher insurance)

What Is on Your New Mexico Startup Checklist?

Follow each step in order to get your business running.

  1. Choose your business structure — Form a limited liability company at enterprise.sos.nm.gov ($50)
  2. Get an Employer Identification Number — Apply free at the Internal Revenue Service website
  3. Open a business bank account — Keep personal and business money separate
  4. Register for a Combined Reporting System number — Go to the Taxation and Revenue Department website
  5. Check for local licenses — Ask your city or county about local requirements
  6. Buy general liability insurance — Get at least $1 million in coverage
  7. Buy cleaning supplies — Start with the basics and upgrade as you grow
  8. Set your prices — Use our Price Calculator and factor in New Mexico costs
  9. Set up your Google Business Profile — This is your most important marketing tool
  10. Book your first clients — Tell friends, post on Nextdoor, offer introductory rates
  11. Set up workers' compensation — Buy from a private insurer before hiring your third employee
  12. Track paid sick leave — Required for all employees under the Healthy Workplaces Act

What Are the Best Tips for New Mexico?

Here are practical tips from successful New Mexico cleaning businesses.

  • Low startup costs are your advantage — A $50 limited liability company and no annual reports saves you money. Put it toward marketing and supplies
  • Factor in gross receipts tax — Build the 7 to 9 percent tax into your prices. Do not let it eat your profit margin
  • Santa Fe is the premium market — Higher cost of living means clients pay more. The $15.00 minimum wage also means higher labor costs
  • Offer bilingual service — English and Spanish marketing reaches more clients. This is a real competitive edge in New Mexico
  • Target vacation rentals — Santa Fe and Taos hosts need reliable cleaners. One good host brings five more through referrals
  • Dust is constant — The desert climate means homes get dusty fast. Sell this as a reason for regular cleaning service
  • Connect with military families — Bases like Kirtland create steady demand for move-in and move-out cleaning
  • Use MaidProfit from day one — Set up scheduling, invoicing, and profit tracking before your first client
Neighboring State Guides

What Are the Guides for Nearby States?

If you serve clients near the New Mexico border, check our guides for nearby states.

Nearby State Pricing Guides

Where Do You Find New Mexico Government Resources?

Here is every government website mentioned in this guide. Bookmark these for easy access as your business grows.

Complete Government Resource List

What Other Guides Can Help Your Business?

These free guides cover topics every cleaning business owner needs. They work hand-in-hand with this state guide.

Recommended Reading

Start Your New Mexico Cleaning Business Today

New Mexico is one of the best states for starting a cleaning business. A $50 limited liability company, no annual reports, and low living costs make it affordable. Strong demand from tourism and military bases gives you steady opportunities.

Start by forming your limited liability company and getting your Employer Identification Number. Register for your Combined Reporting System number with the Taxation and Revenue Department. Get insured and set prices that cover your costs plus the gross receipts tax.

Every successful cleaning company in New Mexico started with one owner and one first client. Follow the steps in this guide. Take action today.

New Mexico Cleaning Business Frequently Asked Questions

How much does it cost to start a cleaning business in New Mexico?
Starting as a solo operator costs $800 to $2,400 in your first year. This includes $50 for a limited liability company. Add $400 to $1,200 for insurance and $200 to $500 for supplies. New Mexico has no annual report fees. Hiring three or more employees raises your cost to $4,000 to $10,000. Workers' compensation and higher insurance add up.
Do I need a special license to clean houses in New Mexico?
No. New Mexico does not require a state business license or a special cleaning license. You do need to register with the Taxation and Revenue Department. This gives you a Combined Reporting System identification number. This lets you report and pay gross receipts tax. Your city may also require a local business license.
Are cleaning services taxable in New Mexico?
Yes. New Mexico charges a gross receipts tax on almost all services, including cleaning. The state base rate is 5.125 percent. Local rates add more on top. The total comes to 7 to 9 percent depending on your location. This tax is on the business, not the customer. Most businesses pass the cost along in their prices.
When do I need workers' compensation insurance in New Mexico?
You need workers' compensation insurance when you have three or more employees. This includes part-time, seasonal, and temporary workers. You can buy coverage from any private insurance company. Solo operators and two-person teams can skip this cost when starting out.
What insurance do I need for a cleaning business in New Mexico?
You need general liability insurance, which costs $400 to $1,200 per year. Workers' compensation insurance is only required when you have three or more employees. You can buy it from any private insurance company. A surety bond is also recommended to protect clients against theft.
What is the minimum wage for cleaning workers in New Mexico?
The state minimum wage is $12.00 per hour. Santa Fe requires at least $15.00 per hour. Las Cruces requires at least $13.01 per hour. You must pay the higher of the state or local rate. The rate depends on where the employee works.

Ready to Launch in New Mexico?

MaidProfit gives you quoting, invoicing, scheduling, and profit tracking — everything you need from day one.

No credit card required • 14-day free trial