Business and legal compliance is the process for creating, implementing, and supervising processes to ensure a business complies with applicable laws, regulations, rules, licensing, registration, reporting, investigation, taxation, and decision-making responsibilities related to the operation of the business.

In New Mexico, business and legal compliance encompasses a range of obligations that businesses must adhere to in order to operate lawfully. This includes complying with state statutes and federal laws that govern business formation, such as choosing the correct business structure (e.g., sole proprietorship, partnership, LLC, corporation) and registering with the New Mexico Secretary of State if required. Businesses must also adhere to tax laws, which involve obtaining a tax identification number, registering for state taxes, and paying the appropriate state and federal taxes. Compliance with labor laws is also essential, including those related to minimum wage, overtime, and workplace safety, as governed by the New Mexico Department of Workforce Solutions and federal agencies like OSHA. Additionally, businesses may need to obtain specific licenses and permits, depending on their industry and the nature of their operations. Companies must also ensure they are following environmental regulations, consumer protection laws, and any industry-specific regulations. Failure to comply with these legal requirements can result in fines, penalties, or more severe legal consequences.