New Mexico DBA
How to Get a DBA in New Mexico
If you operate your business using a name that isn't your legal business name, you're using a New Mexico DBA. Unlike most states, New Mexico doesn’t register DBAs, but that doesn’t mean your business can’t use one. Any type of New Mexico business can use a DBA, including New Mexico sole proprietors, general partnerships, LLCs, and corporations. DBAs can help give your business a catchier name. They can also be used to advertise your business, open a business bank account, or set up social media accounts. Our guide shows you why you might want a DBA, and how to use one in New Mexico.
Your New Mexico DBA Guide:
What is a New Mexico DBA?
Think of a New Mexico DBA (doing business as) as a nickname for your business. A DBA can be used in much the same way you’d use your legal business name, including to:
- Create websites and social media accounts (Facebook, Instagram, etc…)
- Advertise (billboards, print media, radio, television, business cards, etc…)
- Opening a business bank account
- Setting up a point-of-sale system
An LLC or corporation might use a DBA to shorten their legal business name, or to expand their business offerings without having to create a new separate entity. For a sole proprietor, who would otherwise have to use their own first and last name as their business name, a DBA can give their business a name that sounds professional or is in line with the types of services or products they sell.
DBAs are also important for franchise businesses. For example, if you own a UPS Store franchise, the legal name of your business might be “Santa Fe Shipping, LLC,” but you’ll need to get a DBA to use the UPS name. Remember, a DBA is just a name for your business and not a business itself. With a DBA, you’ll still file taxes under your legal business name and existing EIN (or SSN for most sole proprietors).
Is registering a DBA required in New Mexico?
No. New Mexico doesn’t register DBAs, nor does it require DBAs to be listed on any state or local business license or tax forms.However, most state and local forms do feature a section where you can list your DBA alongside your legal business name. New Mexico will make a note of any DBA listed and include it in their state database. This meansthat when a customer or another business performs a business name search, they’ll know that a business using your DBA is active in the state. This let’s customers know who they are doing business with, and may discourage other businesses from copying your DBA or using something similar.
Why Use a New Mexico DBA?
Not all businesses need or use DBAs, but some of the most common reasons to use a DBA are:
You’re a New Mexico sole proprietor
Sole proprietors are their business, which means the legal name of the business is the first and last name of the owner (ex: Chad Smith). If you don’t want to do business using your name, a New Mexico DBA is an easy way to get a new name for your business. You’ll be able to use your DBA on all sorts of marketing materials, from T-shirts to social media accounts, and you can even open a bank account under your DBA name to make and receive payments.
You want a different business name
If your legal business name no longer matches what your business does, you can use a DBA instead. For example, if your business, “Taos Concrete, LLC,”has an opportunity to expand into asphalt work, you can use a DBA to brand your new business, “Taos Asphaltand Concrete.” You won’t have to amend your business name or register a whole new business. Your new DBA can be used in almost exactly the same way (social media, advertising, paying vendors, accepting payments, etc…) you used your legal business name.
You use your domain name as a business name
Imagine you have a registered business name in New Mexico, “Burger Barn, LLC,” but your domain name, “bigtimeburgerbarn.com” doesn’t match your business name. If you’re using your domain name on business cards, letterhead, signage, checks, advertisements, social media, and other customer-facing endeavors, you’re essentially using your domain name as a DBA.
Will a New Mexico DBA protect my privacy?
Not really, but New Mexico is known for its privacy protections for LLCs. New Mexico requires no owner names or owner addresses on LLC filings. New Mexico LLCs don’t file annual reports either, which means there’s no avenue for your information to end up on the public record. To maintain privacy as a New Mexico business owner, you’re best bet is to hire a New Mexico registered agent to form an LLC. If you hire Northwest as your registered agent, we’ll list our name and address on all your LLC filing documents. A New Mexico helps LLC owners live privately.
How to Get a New Mexico DBA
You can’t register a DBA in New Mexico, but you can use one. However, you have to follow a few rules. We go over them here:
New Mexico law says that your business name can’t be the same as, or confusingly similar to, the name of any other registered business in the state. You’ll want to use New Mexico’s Corporations and Business Service business search to see if any business has registered your DBA as a legal business entity name. New Mexico doesn’t regulate DBA names, which means you could use a registered business name as your DBA, but to avoid confusion you’re going to want to choose a name that isn’t already in use. You’ll also want to use a search engine to check to see if any similar business names are being used in New Mexico.
You can also check out New Mexico’s trademark database to make sure your DBA hasn’t been trademarked at the state-level. Finally, a national trademark search will make certain you don’t get into legal trouble by using another business’s trademarked name.
Just because New Mexico doesn’t require DBAs to register with the state doesn’t mean you have the freedom to name your business whatever crazy name you want. In general your DBA should follow New Mexico’s business naming guidelines. Your New Mexico DBA name can’t:
- Be the same or similar to registered business names in the state
- Include a descriptor such as “LLC,” “Limited,” “corp,” or “Inc.,” unless the business is that type of registered entity
- Include any word or phrase that would mislead the public
Once you’ve made sure that no other business is using your DBA name, you can just start using it. You can set up a business bank account under your DBA, build out a website, and start posting on Facebook and Instagram using you DBA. Order those branded T-shirts or pint glasses for your business because your DBA is ready to roll.
Using a DBA vs. Starting a Business in New Mexico
Registering a DBA should not be confused with starting a business. A DBA is a tool businesses can use to market themselves under a different name. Starting a business may involve getting a DBA, but it isn’t required. You’ll need a business before you can get a DBA.
There are two ways to start a business in New Mexico:
- Sell a product or service. If you’re selling baked goods at the local market or you fix bicycles on the side, you’re in business. Sole proprietors (one owner) and general partnerships (two or more owners) are two of the most popular business types because they are easy to start and require no formal state paperwork (except business licenses if applicable) or filing fees.
- Register your business with the state. To form a business entity like a New Mexico LLC or corporation, you’ll need to file state formation documents (Articles of Organization or Articles of Incorporation) and pay a filing fee ($50 for an LLC, at least $100 for a corporation).
DBA vs. LLC in New Mexico
While LLCs can use DBAs to operate under a different name, the two aren’t the same thing. A DBA is just a name, not a business entity. A DBA, unlike an LLC, doesn’t provide any sort of legal rights or protection. An LLC is a legal entity, registered with the state. Registering an LLC with the state creates legal separation between the business and the owners (members) of the business. If someone sues an LLC, they’ll be suing the LLC and not the owner of the LLC. This separation is what keeps the personal assets (house, savings, car, etc…) of LLC owners from being used to satisfy a debt.
While sole proprietors and general partnerships enjoy ease of business start-up (no paperwork, no filing fees), they don’t have protection in case of a lawsuit because in the eyes of the law, they are their business. If you want legal protection, plus a business name, an LLC is the way to go. Northwest can help you get one.
Learn why you should turn your sole proprietorship into an LLC.
Protect Your Assets with a New Mexico LLC
Get Started Today!
New Mexico DBA FAQs
There is no cost to getting a DBA in New Mexico, because you can’t technically get a DBA. You can use a DBA in place of your legal business name, but there is no cost to do so.
All contracts you sign for your business will need to be signed using your legal business name. However, you should also list your DBA alongside your legal business name. Otherwise, the contract might not hold up in court. A sole proprietor using a DBA would sign their name and the DBA name. A formal business like an LLC would have an authorized signer sign their name, the name of the LLC, and the DBA that it uses.
No. DBAs are just names, not taxable entities. Certain businesses, like multi-member LLCs, corporations, and any business with employees, need an EIN, but you won’t need to get an EIN just for a DBA.
You can open up a bank account with a DBA if you want to, but it isn’t necessary. Some business owners find that opening separate bank accounts for their DBAs makes accounting easier.
New Mexico allows businesses to have as many DBAs they want.
Your legal business name is the name that appears on your business’s government documents (state filings, tax filings, etc.).
- Formal business entities: LLCs, corporations, non-profits, and other formal entities register their business name with the state. This means that their legal business name is the name listed on formation documents, including entity identifiers like LLC, Inc., Corp., and others (ex: Home Depot, Inc. or Taco Loco, LLC).
- Sole proprietors: Owner’s legal name (ex: Lauren Crawford).
- General partnerships: The legal name is either the partners’ last names or a name the partnership has given itself in a written partnership agreement.
