Barber / Cosmetology Permits & Licenses in Albuquerque, NM

Businesses must pay GRT at the time of filing. No separate 'estimated' system, but regular payments are due based on reporting frequency.

Required for all LLCs. Expedited filing available for additional $100.

All LLCs must file unless dissolved. Online filing preferred.

Renewable every 2 years for $50. County publication may be required in some cases.

Required for barber shop/shop location. Must have licensed manager/barber on staff.

Required for salon providing cosmetology services. Separate from barber license.

Requires 1,500 hours training + exam OR apprenticeship. Owner typically needs this.

Requires 1,600 hours training + exam. Esthetician/specialty licenses also available.

All businesses providing services in NM must register. Barber/cosmetology services taxable.

All businesses providing services or selling goods in New Mexico must register for Gross Receipts Tax (GRT), which functions like a sales tax. Barbers and cosmetologists are subject to GRT on services rendered. Registration is done via the Taxpayer Access Point (TAP) system.

Required for all employers in New Mexico. Employers must withhold state income tax from employee wages and remit it to the state. Registration is completed through the TAP portal.

Employers must register with the New Mexico Department of Workforce Solutions to pay unemployment insurance taxes. This is separate from federal unemployment tax (FUTA).

All LLCs doing business in New Mexico must file an annual franchise tax report, even if no tax is due. The franchise tax is based on net income apportioned to New Mexico. This is distinct from the federal income tax obligation.

An EIN is required for all LLCs, regardless of whether they have employees. It is used for federal tax reporting, including income, employment, and excise taxes. Apply online via IRS website.

LLCs are pass-through entities unless electing corporate taxation. The business files Form 1065 (if multi-member) or Schedule C (if single-member) with the owner's personal return. This is informational; taxes are paid at the individual level.

Many cities and counties in New Mexico (e.g., Albuquerque, Santa Fe, Las Cruces) require a local business license or privilege tax. Fees and requirements vary. For example, Santa Fe charges $50 annually. Check with the specific city or county clerk’s office where the business operates.

In addition to state GRT, some cities and counties impose local option gross receipts taxes. Rates vary (e.g., Albuquerque adds ~2.75%). Automatically collected under the same GRT license number. No separate registration required.

Owners of single-member LLCs are considered self-employed and must pay self-employment tax on net profits. Must file Schedule SE with Form 1040. Estimated tax payments are due quarterly if tax liability exceeds $1,000.

Employers must file Form 941 quarterly to report federal income tax, Social Security, and Medicare taxes withheld from employee wages. New employers may be required to deposit taxes monthly or semi-weekly based on payroll size.

Required for employers who paid $1,500 or more in wages in any calendar quarter or had at least one employee for 20 or more weeks. Filed using Form 940.

Required for all businesses operating within Albuquerque city limits; barber/cosmetology shops fall under Retail/Commercial category

Free license required to collect/report county GRT; separate from state GRT license

Confirms property zoning allows barber/cosmetology use; required before Certificate of Occupancy

Specific to cosmetology/barber establishments; includes salon plan review and inspections for sanitation

Required for fire suppression, exits, and safety systems compliance

Verifies zoning, building, fire, and health compliance

Required for wall, freestanding, or projecting signs; complies with sign code regulations

Annual alarm system inspection also required

All businesses require license; cosmetology shops categorized as "Personal Services

Complements state cosmetology board licensing with local health inspections

Required registration (not full license) for zoning and tax compliance

All commercial occupancies require annual fire inspection

Mandatory for all employers with one or more employees in New Mexico, including part-time and full-time workers. Sole proprietors without employees are exempt but may elect coverage. Barbers employed by the LLC must be covered. Independent contractors are not considered employees if properly classified under NM law.

Not statutorily required by New Mexico for barbers or cosmetology businesses. However, landlords or shopping centers may require proof of general liability insurance as a lease condition. Strongly recommended due to risks of slips, falls, or client injury on premises.

Not legally required by New Mexico state law. However, it is strongly recommended for protection against claims of negligence, improper service, or allergic reactions. Some professional associations or landlords may recommend or require it. Not a substitute for workers' comp or general liability.

A $10,000 surety bond is required for the establishment (barber shop or cosmetology salon) license in New Mexico. This is a license bond, not an insurance policy. It protects clients against financial loss due to violations of the Cosmetology Act. The bond must be issued by a surety company licensed in New Mexico. Applies to all licensed establishments, regardless of business structure (LLC, sole proprietorship, etc.).

Required for any vehicle owned by the LLC and used for business purposes (e.g., transporting equipment, mobile barber services). New Mexico law mandates minimum liability coverage: $25,000 bodily injury per person, $50,000 per accident, and $10,000 for property damage. Personal auto policies typically exclude business use, so commercial coverage is necessary.

Not specifically mandated by New Mexico law. However, if the business sells physical products, it assumes liability for defects or adverse reactions. General liability insurance may cover some product claims, but specialized product liability coverage is recommended for risk mitigation. No state agency enforces this as a standalone requirement.

Only applicable if the barber shop holds a liquor license (e.g., for a lounge area). Most barbershops do not serve alcohol. If applicable, the AGD requires proof of liquor liability insurance (also called dram shop insurance) as part of the licensing process. Standard general liability policies exclude alcohol-related incidents.

While not required for sole proprietorships with no employees, most LLCs obtain an EIN for banking and credibility. For a barber/cosmetology LLC, it is strongly recommended even without employees. Form SS-4 is used to apply.

A single-member LLC is treated as a disregarded entity and reports income on Schedule C of the owner’s Form 1040. Multi-member LLCs file Form 1065 unless they elect corporate taxation. No separate federal income tax is paid by the LLC unless it elects corporate status.

Barbershops must comply with OSHA’s general duty clause and specific standards for bloodborne pathogens (29 CFR 1910.1030), hazard communication (29 CFR 1910.1200), and personal protective equipment. Includes maintaining a written exposure control plan, offering hepatitis B vaccine, and proper disposal of contaminated sharps.

Barbershops are considered public accommodations under ADA Title III. Must ensure accessibility for customers with disabilities, including physical access (if modifying or constructing), communication access, and service policies. Reasonable modifications required unless it causes "undue burden.

Most barbershops do not generate large quantities of hazardous waste. However, if using EPA-regulated chemicals (e.g., formaldehyde-based products), proper storage, labeling, and disposal as a small quantity generator may be required. Most standard salon chemicals are not federally regulated as hazardous waste.

FTC enforces truth-in-advertising rules. Barbershops must avoid deceptive claims (e.g., false pricing, fake testimonials, misleading “discounts”). Online reviews and social media promotions must be truthful and not misleading. Applies to all forms of advertising, including websites and flyers.

All U.S. employers must complete Form I-9 to verify identity and employment authorization for every employee hired after November 6, 1986. Employers must retain I-9 forms for 3 years after hire or 1 year after employment ends, whichever is later.

FLSA sets federal minimum wage ($7.25/hour), overtime pay (1.5x regular rate after 40 hours/week), and recordkeeping requirements. Applies to barbershops engaged in interstate commerce (which most are). Independent contractor misclassification is a common issue—barbers paid per chair may still be employees under FLSA.

FMLA requires eligible employers to provide up to 12 weeks of unpaid, job-protected leave for qualifying medical and family reasons. Most small barbershops do not meet the 50-employee threshold and are exempt.

The FDA regulates cosmetics used in barbershops (e.g., hair dyes, shampoos, conditioners). Products must be safe, properly labeled, and not adulterated. No pre-market approval required, but businesses must not use banned ingredients or make unapproved drug claims (e.g., “cures dandruff” unless approved as a drug).

There is no federal barber or cosmetology license. Licensing is regulated entirely at the state level (in New Mexico, by the Regulation and Licensing Department). This is a state-level requirement, not federal.

If the LLC pays $600 or more to a non-employee (e.g., independent contractor barber), it must file Form 1099-NEC. This is a federal tax reporting requirement under IRS rules, not specific to barbershops but commonly applicable due to booth rental models.

Applies to all LLCs registered in New Mexico. Must be filed annually to maintain active status. Can be filed online via the Secretary of State's portal.

All barber and cosmetology establishments must renew their license every two years. The license must be visibly posted at the place of business.

Applies to all licensed barbers, cosmetologists, and specialists. License must be renewed even if not actively practicing during the cycle.

Per Rule 13.2.2.9 NMAC, all licensed barbers and cosmetologists must complete 6 hours of continuing education per renewal cycle. Courses must be approved by the Board.

Barber and cosmetology establishments are subject to inspection for compliance with infection control, waste disposal (e.g., sharps, contaminated materials), and sanitation standards under the Regulated Medical Waste Rules.

LLC with employees must file quarterly Form 941 (Employer's Quarterly Federal Tax Return) and annually Form 940 (Federal Unemployment Tax). Form 1099-NEC required if $600+ paid to independent contractors.

Employers must withhold state income tax and file Form WH-7 (monthly/quarterly) and Form WH-1 annually. Frequency depends on the amount withheld.

All businesses in New Mexico providing services (including barbering/cosmetology) must register for and file GRT. Most new businesses start with monthly filings.

Includes tax returns, receipts, payroll records, and business expense documentation. IRS recommends keeping records for at least 3 years; 7 years if claiming losses. NM TRD follows similar standards.

The current establishment license and all practitioner licenses must be visibly posted at the business location. Additionally, required labor law posters (e.g., minimum wage, OSHA) must be displayed if employees are present.

Required for all employers with employees. Poster must be in a conspicuous location accessible to employees. Available in English and Spanish.

Employers must post the New Mexico Minimum Wage Poster and other labor law notices in a visible location. Available from the DWS website.

Barber shops are classified as 'Business Occupancies' and are subject to inspection under the New Mexico Fire Code. Includes checks for exits, fire extinguishers, and electrical safety.

Self-employed individuals and owners of pass-through entities (like most LLCs) must make quarterly estimated tax payments for income and self-employment tax.