Ready to launch a business in New Mexico? You’ll have to think of a name first. Picking the perfect business names takes some people minutes and others hours. Before you start brainstorming, it’s good to know that New Mexico requires all businesses to make sure their business name is available before registering it with the state. We’ll explain how to conduct a business name search, and give you some tips to start a business in the Land of Enchantment.
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How to check business name availability in New Mexico
Now that you’ve thought of a name for your business, the next step is to find out if the name you chose is available for you to use.
1. Visit the New Mexico Secretary of State website
On the website, you will find a simple business name search tool that you can use to find out if a name is free for you to use. Unlike other states, the tool is very straightforward, and you can use it without being tech-savvy.
2. Type the name of choice and wait for the results
The name search tool is easy to use. All you need to do is type the name you want and click “search.” If there are no results or no exact matches, that means that the name you want is up for grabs. You can reserve the name to make sure you can use it when you’re ready.
3. Consider reserving a name
After running a New Mexico business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately.
New Mexico allows business owners to reserve a name for 120 days for $20. ($10 fee + a $10 handling fee).
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of New Mexico, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
4. Check domain name availability
We created a tool that makes it easy.
How to name your New Mexico business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your New Mexico company?
As you research available business names in New Mexico, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your New Mexico business
Ready to set up your business in NM? Here’s what you do:
1. File your Articles of Organization
Visit the New Mexico Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in New Mexico, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In New Mexico, the cost is $50.
4. Wait for approval
New Mexico will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
New Mexico small business facts
Before we get to the good stuff, here are a couple of small business statistics in New Mexico brought to you by the U.S Business Administration:
- There are a total of 154,804 small businesses in New Mexico, which contributes to 334,945 jobs for the people.
- 55.3% of all New Mexico employees work for small businesses.
- 84,431 of those employees work for minority-owned businesses, which shows good diversity.
- Firms with fewer than 100 have the most shares in employment in the State of New Mexico.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in New Mexico:
Why is it so important to check on business name availability?
New Mexico will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
Is New Mexico a business-friendly state?
Based on the data from the U.S. Small Business Administration, there are 154,804 small businesses in New Mexico, which is not a lot if you compare it to other states in the US.
However, if you look at the number of startups based on the number of businesses that exited in 2017, you will notice that more businesses in the state are starting up than dissolving, which is definitely a good sign if you want to open up a small business in New Mexico.
How do I dissolve a business in the state of New Mexico?
Closing your business in New Mexico is not that complicated. Basically, you need to notify the Taxation and Revenue Department by completing specific forms and making sure all your taxes are paid. You can avoid non-filing penalties by submitting a CRS-1 form for every reporting period up to the closing date of your small business.
You can also ask the Taxation and Revenue Department to issue you a Letter of Good Standing if you need to make sure that you paid all your taxes upon closing your business.
Is the process to dissolve a business in New Mexico different from dissolving an LLC?
Yes, dissolving a corporation in the state of New Mexico is different. You will need to request a Corporate Certificate of No Tax Due from the TRD and contact the Secretary of State Department regarding the further requirements from that agency. You can call them at (505) 827-3600 or visit the SOS website.
Is there a firm that can help me fund my business in New Mexico?
There are many ways to get funding or grants if you need money to start a business in New Mexico. You can try to get funding from venture capitalists, loan programs, banks, or friends and family.
Regardless of who you plan to ask for funding, you should put together a solid business plan so you can show how the business will work and how it will turn a profit.
You can also explore grant options that are available for businesses in the State of New Mexico.
What is the most thriving industry in New Mexico?
In terms of the number of firms, the professional, scientific, and technical services industry has the most number of firms, with a total of 20,525 firms. These are the people you go to for professional help, such as repairs, home repairs, and other types of professional services.
Construction materials is another thriving business in New Mexico. However, the success of your business will depend on your planning and the product itself, meaning any business can thrive with proper management and research.
What does a commercial registered agent do?
Every business needs to list a registered agent on its Articles of Organization. It can be the business owner or a friend, or it can be a commercial registered agent. If you hire a commercial registered agent, the company will receive documents on your business’ behalf. There’s usually an annual fee that starts around $50 and increases if you want additional services like annual report filing.
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