Situated in the Rocky Mountains, New Mexico is the 36th most populous U.S. state, with just over 2.1 million people. In a state where one-third of the land falls under federal government protection, it is no wonder that federal agencies make up one of the most significant employers.
Economic activities in New Mexico include a military presence with three air force bases, oil and gas drilling, and tourism. Data from the Office of the Advocacy of the U.S. Small Business Association indicate that the 158,844 businesses in New Mexico constitute 99% of all business activities and contribute to almost 55% of employees.
New Mexico – The Business-Friendly State
Across several industries, including the significant tourism sector that attracts 30 million annual visitors to the breathtaking scenery of the Rockies and the historical sites, businesses agree that New Mexico is a business-friendly state.
The state has a rational tax environment, low-regulation demands, easy registration, and charges reasonable rates for business licenses. Furthermore, New Mexico has a low cost of living, making it affordable. It also provides quick access to several important consumer markets. All-in-all, the state encourages businesses from local, international, and immigrant entrepreneurs, leading to steady growth in small business numbers.
Interestingly, the top business industry in New Mexico are providers of professional, scientific, and technical services. Construction, health and social services, retail, and real estate follow in order of importance.
Business Names and Choosing a DBA
One of the best ways a business defines its brand is through its company name. An original and memorable business name can help a company stand out from its competition, create customer loyalty, increase sales, and even attract and retain talent.
As in most states, New Mexico allows business owners to run their business under a different name than the one they used to register their company with the state. Giving the business a DBA is not unusual, but if you are still unsure about this, carry on reading for more information.
What Does DBA Stand For?
DBA stands for the term “Doing Business As.” One can also call it a “trade name,” which is the name you can choose for your business to trade under if you prefer not to use the name you used to register your new company with the state.
Why Choose a DBA?
There are several reasons why people choose DBAs. One of the first is that it protects their personal information since when you have a sole proprietorship or general partnership, the default name used on these business entities is yours or your partner’s. Therefore, you can get the right protection from others knowing your name by registering a DBA.
Furthermore, other purposes for choosing a DBA include the option of using it to open a business bank account and to protect your products and services from legal liabilities like trademark infringements.
Choosing a DBA for your business also gives you more branding and marketing flexibility, allowing you to gain customer loyalty.
Registering a New Mexico DBA
If you want your New Mexico business to operate under a separate trade name, you need to file for a DBA with the New Mexico Secretary of State.
After deciding on the perfect DBA for your business, you must check the state corporate entity base to ensure the name is available. If taken, you will have to choose another name for your entity.
Furthermore, if your business is a foreign corporation, when you file for DBA, the name chosen must clearly indicate its purpose as set down in its governing documents. In addition, always ensure that the name does not deceive others into thinking it is a pre-existing business with a similar name. Finally, when your business is a legal entity like an LLC or Corporation, the DBA must include a word or abbreviation that indicates its company status.
In New Mexico, you can’t register a DBA on a state level, but you can reserve a DBA for up to 120 days to help create a business banking account or trademarking.
Remember, a trademark is entirely different from a DBA. So, if you want to protect your brand name, you need a trademark registration.
Protecting Your Business In New Mexico
Trademarking is the best way to guard your business name in New Mexico since the state’s business name reservation process is not viable. Whatever your reasons for needing a DBA for your business in New Mexico, including if you want to create an LLC and corporation, you should first consult an attorney or registered agent.
Remember, a DBA cannot provide a business with liability protection for your personal assets and cannot replace a legal entity like an LLC. On the other hand, forming a legal entity allows you to separate your business from its owner and provides you with privacy, pass-through taxation, and more.
When you have a business registered in another state, you probably need to register it with the Secretary of State before you move your business to New Mexico. Addtionally, the same applies to foreign companies.
Like all states, New Mexico’s local laws governing your particular industry or business operations differ from others. Consult a knowledgeable agent to learn your business’s regulations and licensing requirements in New Mexico.
Bottom Line
New Mexico’s beauty in a unique corner of the country makes it a well-visited state by tourists. However, increasingly several factors contribute to more businesses showing an interest in the state from elsewhere. Companies choose New Mexico for its lower corporate taxes, low business registration costs, low cost of living, and its proximity to some big consumer markets. Whatever your reasons for wanting to open or move your business to New Mexico, you will need to decide on the best type of business formation and name to ensure the best protection for you, the owner, and the company.
Finally, remember you can create a DBA for 120 days to trademark and open a bank account. However, since a DBA does not offer you legal protection, you should first consult a lawyer or a registered agent to consider options like creating an LLC or corporation.
