Choosing a Business Structure
Choosing a business structure for your small business is one of the most important decisions you will make.
The factors you should consider when choosing a business structure will depend on your needs and wants for personal liability protection, tax liabilities, and paperwork to keep the company in compliance.
This guide covers how to register a business name for the following business structures in New Mexico: sole proprietorships, general partnerships, limited liability companies (LLCs), and corporations.
Steps to Register a Business Name in New Mexico:
Registering a business name in New Mexico depends on the type of business structure you already have or want to form. Sole proprietorships and partnerships are simpler than LLCs and corporations, but all of these business types have specific rules to follow in New Mexico. They will have different filing requirements, naming rules, and processes to register or change names.
These are the steps to register a business name in New Mexico:
- Make sure your business name is unique
- Determine your business structure’s naming needs
- Address additional naming requirements
This guide assumes you have a name in mind for your business.
If you don’t have a business name in mind or find that another business already took the one you had in mind, check out our How to Name a Business guide to learn what makes a good name.
If you're not sure what type of business you would like to start, our Business Ideas guide will help you find the business that's right for you.
Step 1: Make Sure Your Business Name Is Unique
The first step in registering a business name is to make sure it's unique, meaning that it’s not trademarked and no one else in your state formed a company with it, reserved it, or has control of it online as a domain name or on social media platforms. You can do this by conducting the following searches:
Federal Trademark Search
First, a quick search of the Trademark Electronic Search System on the United States Patent and Trademark Office (USPTO) website will tell you if someone else already trademarked your desired business name. This means that someone registered the business name with the federal government.
To do this search:
- Go to the USPTO.
- Click the Trademarks link in the menu.
- Then click the Search trademarks option.
- On this page, click the Search our trademark database (TESS) button.
- Choose the Basic Word Mark Search, which is enough to find name availability.
- Enter the name you want to use.
Once you have the list of results, check to see if it includes any live trademarks using that name — or something close to it — as well as what the use of that trademark is in the Goods and Services section of the search results.
To learn more about trademarks and the steps you must take to get one, read our How to Trademark Your Business Name article.
New Mexico Business Search
Next, use the New Mexico business search tool. This is an important step in the process because your filing will be denied if you try to file for a name already in use.
Search requirements can vary depending on your business needs. For example, a unique and available name is required to:
- File for formal business structures like LLCs and corporations.
- Reserve a name for an LLC or corporation before filing.
A state-level name search isn’t required for informal business structures like sole proprietorships or general partnerships in New Mexico.
Domain Name Search
We strongly recommend that you also check to see if your business name is available as a web domain (URL). Even if you don't plan to create a business website today, you may want to buy the web address to prevent others from acquiring that domain name. It’s a free search.
Web and Social Media Search
Finally, when doing your research, it’s a good idea to check what else comes up when you search for your prospective business name online on sites like Google, Bing, Yahoo, Yelp, Twitter, Facebook, Instagram, and more.
Doing this will show you who else with a similar business name appears on these platforms, if they have a large online presence, and how tough they may be to compete with while you build your brand.
It’s also smart to see if anyone else in your industry already has a similar name to the one you want to use. You can do this by looking up some search terms related to your industry and brand. You may decide on a different business name to make yourself stand out.
Recommended: If you find out that the social media accounts for your brand are available, register them as quickly as possible. It’s free and stops others from acquiring them before you have a chance to form your business.
Step 2: Determine Your Business Structure’s Naming Needs
Now that you’ve found a unique name for your business, you’ll need to register it to start doing business. This guide covers the naming needs of informal business structures, including sole proprietorships and general partnerships, as well as two of the most common formal business structures: LLCs and corporations.
Sole Proprietorships and General Partnerships
A sole proprietorship only has one owner. It’s an informal business structure that doesn’t provide personal asset protection or require you to file formation documents with the state.
A general partnership has two or more owners. You must file formation documents with the state of New Mexico for this type of business using a Statement of Partnership Authority.
By default, sole proprietorships operate as the same name as the owner while general partnerships must include the surnames of all the partners.
Limited Liability Companies (LLCs) and Corporations
Registering a legal business name is part of both the LLC and corporation filing processes. Once you file to form your LLC or C corporation (C corp) with the state, that process also registers your business name.
A C corp is a separate legal entity from its owners with a basic operational structure consisting of shareholders, officers, directors, and employees. A C corp business structure also protects your personal assets.
Both LLCs and corporations require unique names in New Mexico that must follow certain naming requirements:
A name reservation is not required to open a new company in New Mexico.
Filing a New Mexico name reservation can, however, prove beneficial like if you find a unique name for your business, but don’t want to form your LLC or corporation right away.
You can file for a New Mexico name reservation and any number of extensions by either:
- Filling out an Application for Reservation of a Domestic LLC Name.
- Or filling out an Application for Reservation of a Domestic Profit Corporation Name.
Both applications must be mailed to the New Mexico Secretary of State along with the appropriate filing fee ($20 for LLCs or $25 for corporations). Once filed, your business name will be reserved in New Mexico for 120 days. You can renew the name reservation when it expires.
How to Change the Name of an New Mexico Business
Changing the name of a business in New Mexico can be done by submitting an amendment to the legal name of an existing business.
If you want to change the legal name of your New Mexico LLC or corporation, you have two options:
- File the LLC Articles of Amendment by mail.
- File the Domestic Profit Corporation Articles of Amendment by mail.
You must submit either option along with the appropriate filing fee ($50 for LLCs or $100 for corporations) to the New Mexico Secretary of State.
Step 3: Address Additional State and Federal Business Name Registration Requirements
After you form a new company, you’ll need to register your business — and its name — in a few more ways so you can pay taxes, conduct business, hire employees, and protect your business from others trying to use its name.
Get an Employer Identification Number (EIN)
After forming a business, you’ll need to get an EIN for a number of reasons. These include paying taxes for your business, opening a bank account, obtaining credit cards, hiring employees, and more.
Many business activities just aren’t possible without an EIN.
Get the Right Business Licenses and Permits
To operate your business in New Mexico you must comply with federal, state, and local government regulations. For example, restaurants likely need health permits, building permits, signage permits, etc.
The requirements for business licenses and permits vary by state. Make sure you read carefully. In some cases, you may need to take classes in order to obtain a specific business license.
Fees for business licenses and permits also vary, depending on the sort of license or permit you want to obtain.
Find out how to obtain necessary New Mexico business licenses and permits for your business or have a professional service do it for you.
Protect Your Business Name With a Trademark (Optional)
Once you confirm the availability of your business name and secure it, you can choose to apply for a trademark for your business. This typically costs around $225 to $400 plus any attorney fees as well as a renewal fee every 10 years.
While this cost can be high for a start-up or fledgling business, it will give your company nationwide protection backed by federal law. That means if others try to do business with the same — or a similar — name as yours, you’ll have legal precedent on your side.
Frequently Asked Questions
Is a business license required in New Mexico?
New Mexico doesn’t offer a general, statewide business license. But, depending on your business type, you may need to obtain applicable permits or licenses.
How much does it cost to start an LLC in New Mexico?
Starting an LLC in New Mexico costs $50 to file your Articles of Organization with the Secretary of State.
How do I get a CRS in New Mexico?
To obtain your state tax Common Reporting Standard (CRS) number in New Mexico, register your business with the Taxation and Revenue Department. This can be done online or by mailing a Business Tax Registration Application and Update Form to the New Mexico Taxation and Revenue Department.
Who needs a CRS in New Mexico?
Any business operating in New Mexico must register with the Taxation and Revenue Department to obtain a CRS number.