State guide · New Mexico
Starting a Medical Practice in New Mexico
What physicians need to know about New Mexico's regulatory environment, entity requirements, and practice-specific rules.
Entity required
Professional Corporation or LLC
LLC permitted
Yes
CPOM enforcement
Moderate
Top income tax
5.9%
Min. franchise tax
Verify — NM corporate franchise tax $50/year
Med board registration
Not required
The information on this page is provided for general reference only and may not reflect recent regulatory or legislative changes. Entity formation requirements, tax rates, and CPOM rules vary by state and change frequently. Always verify requirements with your state's official agencies, a qualified healthcare attorney, or a CPA with medical practice experience before making business formation decisions. Nothing on this page constitutes legal or financial advice.
Entity Requirements
New Mexico physicians may form a Professional Corporation under N.M. Stat. Chapter 53 Article 6 or an LLC under Chapter 53 Article 19. New Mexico's LLC statute permits professional services.
Filing is with the New Mexico Secretary of State.
- •Form a Professional Corporation or LLC
- •Owners practicing medicine must be licensed New Mexico physicians
- •File Articles of Incorporation or Articles of Organization with the Secretary of State
- •File Annual Report (corporations)
Corporate Practice of Medicine
New Mexico recognizes a moderate Corporate Practice of Medicine doctrine. Fee-splitting is prohibited.
Tax Considerations
New Mexico has a graduated personal income tax with a top bracket of 5.9%. Gross Receipts Tax (GRT) — New Mexico's sales tax — applies to most business gross receipts, including some medical services (with exemptions for many).
- •Top personal income tax: 5.9%
- •Gross Receipts Tax (GRT): ~5–9% combined state + local
- •Corporate franchise tax: Verify — approximately $50/year
- •Some medical services exempt from GRT
New Mexico Medical Board
New Mexico does not require entity registration with the Medical Board for general practices.
- •No general entity registration required
- •All practicing physicians must hold an active NM medical license
Employment Law Considerations
New Mexico has expanding employee protections. NM Healthy Workplaces Act mandates paid sick leave. Non-competes restricted for healthcare workers.
- •NM Healthy Workplaces Act: paid sick leave (1 hour earned per 30 worked, up to 64 hours/year)
- •NM minimum wage: $12/hour
- •Healthcare worker non-competes restricted (HB 207, effective 2024)
- •At-will employment
Official resources
Bookmark these official agency portals for New Mexico entity formation, tax registration, and medical board information.
Looking for New Mexico licensing and credentialing information?
State medical license requirements, controlled-substance registration, and Medicaid enrollment specifics for New Mexico.
View New Mexico licensing guide →Get the complete practice startup guide
Everything you need to launch an independent practice — free download