Although filing for a DBA is similar nationwide, there are specific rules to follow when getting a New Mexico DBA. Read on to learn more.
A DBA — short for “doing business as” — serves as a pseudonym your company can use to present itself to the market. You might take this step for a fresh marketing initiative, a new product line, or simply to give your venture a name that resonates more with your clientele.
If you want to obtain a DBA for your business, keep reading to find out how.
DBA in New Mexico: Key Takeaways
New Mexico doesn’t permit traditional DBA registration but lets you temporarily reserve a name.
Adopting a DBA doesn’t provide legal protection or liability separation like a corporation or LLC would; it’s purely a name under which you conduct business.
While a DBA would give you the right to use a business name, it doesn’t protect it from being used by others or serve as a trademark.
What Is a DBA?
A DBA, which stands for “doing business as,” is a fictitious name for your business. It’s a title entrepreneurs can put on their storefronts, business cards, and marketing materials. However, a DBA isn’t a business entity itself, nor does it replace your company’s legal name.
Unlike forming an LLC (limited liability company) or a corporation, which are legal structures that define your organization and protect your personal assets, a DBA only aids in your business branding.
If Jane Doe has a sole proprietorship legally named “Jane Doe Enterprises,” but she wants to open a coffee shop called “Java Jane’s,” she would register “Java Jane’s” as a DBA. This small business can then function under a name more relevant to her coffee-loving customers without creating a separate legal entity.
How to File a DBA in New Mexico
New Mexico does not have DBA registrations, but you can reserve a name temporarily until you form a business entity. Alternatively, you can file for an LLC, which gives you more protection.
1. Do a DBA Name Search
Before you get too attached to a business name, check if it’s available. To do this, you can perform a name search with the New Mexico Secretary of State’s business name search resource. A unique name helps customers identify your business and can prevent confusion.
Be aware that a standard DBA doesn’t protect trademarks. You would need to pursue a trademark through the United States Patent and Trademark Office (USPTO).
2. Protect Your Business Name
As New Mexico does not require DBA registration, you can start using it immediately. However, if you want to protect it and make sure no other business uses it, you can keep it for 120 days by filing a name reservation. After that time, you can file for a trademark or form another LLC or corporation with the new name. The exact fees and forms you’ll need depend on the type of business you’re registering.[1]
New Mexico DBA Name Restrictions
A DBA, or “doing business as,” isn’t a business structure. Unlike LLCs or corporations, a DBA is simply a name under which a company operates that differs from its legal, registered name. It’s a way for businesses to market themselves using a name that reflects their brand or services better.
A DBA shouldn’t include terms that imply it’s an entity that it isn’t, such as “Inc.” or “LLC,” unless the business is indeed incorporated or an LLC. Additionally, the name shouldn’t suggest any affiliation with government agencies or use words that are prohibited by state law.
DBA New Mexico Tax Considerations
A DBA, or “doing business as” name, wouldn’t change the structure of your business or how it’s taxed. It’s simply a nickname for your business operations, not a separate entity.
If you’re a sole proprietor or a part of a general partnership, the income and expenses under a DBA would go on your personal tax returns. The IRS doesn’t differentiate between your personal and business income in these cases. Your business profits are your personal income, and you’ll pay taxes accordingly.
If your business is an LLC, corporation, or another entity that’s separate from your personal assets, the DBA is still just a name and gives no liability protection. Your company’s tax obligations — whether that’s income tax, sales tax, or any other kind — remain tied to the business entity itself, not the DBA.
Why should you get a DBA?
Getting a DBA, or “doing business as” name, can be a strategic move for many business owners, even if it’s not an option in New Mexico. Here’s why you might consider it:
Lets you operate under a name that reflects your brand
Helps create a memorable identity that resonates with customers
Simplifies opening a business bank account for sole proprietors
Gives you more privacy, allowing you to use a business name instead of your personal name
Allows your company to conduct business under multiple names without having to form new legal entities for each venture
Keeps your business compliant and avoids potential legal issues
FAQs
What’s the difference between an LLC and a DBA?
An LLC, or limited liability company, is a legal entity that protects its owners’ personal assets. A DBA, or “doing business as,” is just a different name — a moniker you can use for your business that’s different from your personal name or the legal name of your LLC or corporation.
How much does getting a DBA cost?
In most states, the cost of registering a DBA varies. Generally, you can expect to pay a filing fee ranging from $25 to $50.
Do I need a DBA for my New Mexico business?
New Mexico does not require or permit DBA registration.
What’s the difference between a trade name, assumed name, and a DBA name?
These terms are synonyms. A trade name is the official name under which your business is conducted. An assumed name is another term for a DBA, which stands for “doing business as.”
How long does a DBA last?
A DBA registration is typically valid for a set period, which could be around five years, after which you’ll need to renew it.
Is there a limit to the number of DBA names I can have?
No, there’s no limit. You can register multiple DBA names if you operate different facets of your business and want separate identities for each. In New Mexico, you must register a new entity or trademark for every name.
Is a DBA the same as a trademark?
No, a DBA is just an alternative company name without trademark protection. A trademark legally protects the name, logo, or other branding elements and ensures exclusive rights to use them in commerce.
Does a DBA affect my business’s tax status?
A DBA doesn’t change how your business is taxed. It’s simply a name and doesn’t alter your business's entity type or tax structure. Your LLC, corporation, or sole proprietorship retains its tax status regardless of the DBA.
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Bibliography
New Mexico Secretary of State. “Start a Business.” Accessed November 2, 2023.
