Your company name is important. It’s your first impression, and it’s how people will remember you.
You don’t want to be the business with a forgettable name. So, when you’ve got that perfect name in mind, that clever alliteration or meaningful acronym, you might think about reserving it before someone else does.
Naming your company is one of the first official steps when starting an LLC in New Mexico. In certain situations, it may be necessary to reserve a business name while you’re preparing to bring your business idea to life.
In this article, we’ll explain when reserving a business name is necessary and guide you through all the steps involved.
Are You Required to Reserve a Business Name?
No, New Mexico doesn’t require name reservation as a part of the LLC formation process. If you’re worried that your name might get taken, you’re welcome to file a reservation, but you’re under no obligation to do so.
Should You Reserve Your LLC Name?
Maybe it took you sleepless nights of brainstorming, or maybe you thought of it while sitting at a traffic light. No matter how you came up with your memorable LLC name, you’ll want to make sure that it’s available and ready to use when you file your New Mexico LLC registration.
You have the option to reserve your LLC name, but it’ll cost you a $20 fee. Overall, it’s cheaper to skip this fee and simply start your business, which will lock in your name.
However, there are cases where you may not be ready to officially start your business. Filing an application to reserve your business name gives you “dibs” and ensures that competitors aren’t able to snag it while you’re preparing for launch.
If your business name is unique, including unusual spellings or characters and/or family names, it may not be necessary to reserve a New Mexico business name ahead of time. Plus, paying the extra state fee to reserve your business name could be a waste of resources if you’re planning to launch your business soon after.
How Long Does a New Mexico Business Name Reservation Last?
Anyone planning to do business within the state of New Mexico can reserve an entity name.
Filing your name registration prevents another entity from using that name to conduct business in the state during the time of your hold. An entity name reservation in the state of New Mexico holds your name for 120 days. But what if you haven’t officially formed your LLC in that time? Don’t panic! You can renew your reservation for an additional 120 days as long as you submit another form and pay another $20 fee.
You can also pass your reservation along to someone else by filing a notice of transfer with the Secretary of State’s office. This transfer only changes ownership; it doesn’t extend or renew the reservation.
How do I Reserve a Business Name in New Mexico?
Got a name in mind? Perfect. Follow these steps to reserve it.
Before submitting your application to reserve your business name, you first need to check name availability. The Secretary of State’s Business Search tool makes it easy. Simply enter your desired name and see if any results pop up. Don’t forget that you also need to comply with other business entity name restrictions from the state of New Mexico (find them all in the LLC Act 53-19-3). All good? Then check to see if your LLC name is available. If it is, let out a sigh of relief—you’re ready to reserve it.
Go to the Domestic LLC Forms page and select “Reservation of Limited Liability Company Name.” You’ll notice that there are two forms to complete here. The first is the actual Application for Reservation, and the second is the Document Delivery Instructions, which must be submitted with every filing.
Once you’ve completed the forms in their entirety, then include a check or money order for $20, payable to “New Mexico Secretary of State” and send everything to:
Business Services Division
325 Don Gaspar, Suite 300
Santa Fe, New Mexico 87501
And there you go, quick and painless. The 120-day reservation will begin as soon as your form is processed. Once your name is reserved, it’s time to start thinking forward to filing your Articles of Organization. Check out our comprehensive guide here.
Wrapping up and Choosing the Best Route
Your LLC name is an important part of the business. If you’re not ready to launch your business, but you’ve got a perfect name and you think someone else might claim it, consider reserving it.
However if your business is ready for takeoff, use our comprehensive guide to forming an LLC in New Mexico to get started instead. This way, rather than paying an additional $20 for the name reservation application, you’ll only pay the one-time $50 New Mexico LLC formation fee to claim your name and form the LLC at the same time. $20 isn’t a fortune by any means, but this will at least save you the hassle of reserving a name and registering an LLC separately.
Save Time by Using a Professional LLC Service
As a business owner, you have a lot to think about. Pile on the responsibility of handling state correspondence, tax information, and more while keeping your LLC compliant, and you’ve got yourself a pretty full plate. Sometimes the best move is to let someone else take care of the paperwork for you. This way, you can sleep easy knowing you’ll never miss a deadline or compliance requirement with the state of Wyoming.
While LegalZoom is by far the most well-known LLC formation service and has decent overall value, we highly recommend looking into ZenBusiness or Northwest Registered Agent. We’ve done the research so you don’t have to, and these two are reliable, professional, and efficient.