When you meet someone new, what’s the first thing you want to know about them? Their name. Your name is unique—it’s how people remember you.
The same goes for your New Mexico business: choosing your name is the most important step of forming your company. Unfortunately, it’s not as simple as just picking the name you like best from a list. That works for babies, but not businesses. New Mexico has several requirements that you’ll need to follow as you pick a name.
Fortunately, this five-step guide will help you pick a name that is both perfect for your business and compliant with state laws. We’ll also cover how to reserve your name once you’ve picked it. Let’s get started.
NOTE: If you have found the perfect business name and would like to begin the process of registering your business with the state, there are a lot of top rated LLC services — like LegalZoom and Zen Business — that can do it for you.
1) Review New Mexico Name Requirements
New Mexico has two primary requirements for naming your business. First, your name must include a designation of the type of company you’re forming. For example, if you’re forming a Limited Liability Company, you’ll need to include “LLC,” “Limited Liability Company,” or an abbreviation of those terms. Corporations must include “Inc.,” “Incorporated,” “Corporation,” etc. Regardless of what kind of entity you make, your name should reflect your business type.
Second, your name cannot be the same as or similar to the name of another entity. If it’s too similar to another name, your filings could get mixed up with the paperwork for the wrong entity. And worse, a super-similar business name could confuse your customers.
For example, “New Mexico Lawn Care Bros, LLC” and “Mexico Lawn Care Bros, Inc” are too close. Usually, it’s not enough to just change the entity type identifier; the difference must be greater than that. And adding just one or two words isn’t enough, either. The names must be so different that confusion is unlikely. So, you’ll want to create a name that both looks and sounds different from others.
In a few cases, you can use a name that is deceptively similar to another entity’s name. To do so, you’d need a written letter of consent from the name’s owner. Getting this consent will allow you to use their name, provided you add one or two words to make it distinguishable on the state’s records.
For more information on business naming requirements, you can consult the Business Corporations Chapter of the New Mexico Statutes.
2) Create the Perfect Name for Your New Mexico Business
Now that we’ve covered all the things you can’t do with your business name, let’s focus on what you can do. Here’s where you can let your creativity shine. As long as you meet New Mexico’s requirements, you can pick just about anything you like.
However, to make your business name perfect, here are a few things to keep in mind:
- Pick a name that represents your business: Your business name is the first impression you’ll send to potential customers; you want to make sure it’s the right impression. So, be sure to include important aspects of your business in your name. For example, if you’re starting a restaurant that specializes in vegan fare, you’ll want that to be clear by your business name.
- Write it down and say it aloud: Your business name appears everywhere—business cards, your website, company signage, and more. A good name will look good on paper. But you’ll also say your name a lot, too, so make sure it sounds as good as it looks.
- Choose a name that you’re proud of: Do you like the name you’ve come up with? You love your business, and you should love the name that goes with it. If you love the name, then you’re good to move on to step three.
3) Search Your Chosen Name with the New Mexico Secretary of State
Now it’s time to check that your business name is available in the state of New Mexico. To do so, you’ll want to run a Business Search.
Here’s how it works: input the business name you developed in Step 2. If the state’s search tool doesn’t find any results, then good news! Your name is available for you to use in New Mexico. However, if it does find a match, you’ll want to start over or tweak your name a little to make sure it’s different from what’s currently in use in the state.
To make the most of this tool, we recommend that you run two searches. First, use the “exact match” and type in the exact name you would like to use. If any exact matches pop up, then your name is not available. You’ll need to make changes to it before proceeding. And remember, as mentioned in Step 1, the difference needs to be substantial—more than one or two words.
Once you’ve determined that your name is available, you can run a second search. For this one, use the “contains” option and type in a keyword from your business name. This second search isn’t strictly necessary, but it will allow you to know what names are being used by your competitors. Then you can make sure your name truly stands out.
While this step may seem like a hassle, it can save you time in the long run. You’ll need to put your business name on your formation documents; if you put down a name that’s already in use, the state will send it back to you, request a change, and you’ll need to file all over again. This could potentially slow down your start-up process by several days or even weeks. Searching your name ahead of time prevents that slow-down.
4) Reserve Your Business Name with New Mexico
You’ve done the legwork to make sure your business name is free to use in New Mexico. Now, let’s ensure that none of that work goes to waste by reserving your business name with the state.
In New Mexico, you can reserve a business name by filing an Application for Reservation of a Corporate Name.You can file this form by mail or in person at the Secretary of State. This form includes contact information and a signature of the applicant, as well as your desired name.
New Mexico requires a fee of $25 ($10 for nonprofits) for this name reservation. Once your filings are ready, you can either pick them up in person, or the state will mail them to you.
Reserving your name will protect your business name for 120 days. While it’s unlikely that another person will come up with the exact name you’ve chosen, this process prevents anyone else from using your name. The 120-day-long reservation gives you plenty of time to get all your affairs in order and file your formation documents.
5) File Your New Mexico Formation Documents
Even though filing a reservation gives you 120 days of exclusive rights to the name you’ve created, you’ll need to file your formation documents to make everything official. The document you need to use varies depending on the type of business you’re forming, but it’s often called the Articles of Incorporation or the Articles of Organization.
The Business Services Division of the New Mexico Secretary of State serves as a helpful starting point for forming your business. Here you’ll find the forms you need to start your business, including the New Mexico Articles of Incorporation. You’ll also find easy access to forms such as name reservations, amendments, registered agent changes, and more.
Conducting a business name search is an important part of forming your business in New Mexico. The search saves you time and helps you set up a name that makes your business stand out. We hope this guide made it simple to name your business.