What is a DBA?
If a business wants to do business with a name that is different from the name used to form the business, it must file the new name (called a trade name). This is often called filing for a DBA, or doing business as. For example, if “Frank’s Hot Dogs LLC” wants to do business as “Best Hot Dogs in Town” then the owners have to file a DBA.
When you need a DBA
Under New Mexico state law, filing for a DBA is required for any businesses to operate under a trade name.
There are a number of other benefits associated with filing for a DBA, such as the ability to open a bank account under the assumed name, the ability to avoid legal liability for trademark infringement or deceptive practices, and the ability to instill confidence in all those that transact business with the company.
Setting up a DBA in New Mexico
The DBA filing process begins with searching the corporate entity database for names that are already taken. Filers can go here to view this database and make sure the name they have chosen is not already taken.
Foreign corporations seeking to file for a DBA must not use a word or phrase that indicates it is organized for any purpose other than what is found in the entity's governing documents.
Also, the DBA cannot indicate that the business is authorized to conduct a business it cannot conduct, and cannot be confusingly similar to the name of a pre-existing domestic entity existing under the laws of New Mexico. The name must include the word "corporation," "company," "incorporated" or "limited," or contain an abbreviation of one of these words.
New Mexico DBA Filing & Registration
Businesses seeking to file for a reserved name or DBA will likely need to provide certain information such as the name of the business as it currently exists, the type of business activity to be carried out in New Mexico, the name of the filer and business name to be reserved. Business names can be reserved in New Mexico for up to 120 days.
Getting a trade name registered by filing a DBA doesn’t change how your company is taxed.
When you are ready to get a DBA, LegalZoom can help you. We can search for available business names, file the paperwork for your DBA, and even get you in touch with an attorney that can help you answer specific questions.