Crafting the perfect name for your business can be a complicated task. The process entails selecting a name that bespoke your company's services/products, all the while ensuring you follow the state guidelines your registered agent can help you understand.
This challenging yet exciting part of establishing your brand can greatly impact how you connect with prospects. Plus, a unique and powerful business name can mean a higher level of success when it comes to marketing and branding.
In order to find the right name for your business, you need to follow a couple of steps. These are down below.
The Steps To Naming Your New Business
A systematic approach is essential when naming your business. You want to make sure you craft a catchy yet strong name to represent your business, something that speaks to the consumers. Here's how you can achieve that:Selecting A Business Structure
The first step of naming your new business is selecting a business structure. It is because each business style comprises different naming rules. Business structures are of two types; formal and informal business structures.Formal Business Structures
Your formal business structures may be either one of the following;1. L.L.C.
An L.L.C. (limited liability company) refers to a business where the owners are not liable for any company debt or liability. The basic rules for naming your L.L.C. in New Mexico are:
- Your L.L.C. name should be unique and distinguishable. Your business name should not, in any way, sound similar to another L.L.C.
- You can not use names that concur with the names of federal agencies and organizations.
- Moreover, your business name should not sound nor include words that make it sound like a government agency.
- Your name must include phrases like L.L.C., limited liability company, L.L.C, and so on. You may abbreviate company and limited to 'co' and 'ltd' respectively.
If your name suggests an illegal purpose, it may be rejected. Moreover, restricted words like Bank, University, etc., may take longer to process.2. C Corporation
A C-corporation refers to a corporation that taxes owners separately while a basic infrastructure of shareholders, officers, and employees operate. Here your assets are safe. The rules for naming your C Corporation in New Mexico include:
- Your C-corporation name must be unique. Your desired name should not be already in use nor sound similar to another business.
- Your chosen name should not imply that the business is for purposes outside of what has originally been outlined.
- Your name must include the word 'corporation,' 'incorporated,' 'limited,' 'company,' or an abbreviation of them.
On the other hand, your informal business may be one of the following types:1. Sole Proprietorship
It is probably the simplest business type; this informal business structure does not provide personal asset protection. Also known as individual entrepreneurship or sole trader, only one person owns and runs this business.
The one basic rule of naming your proprietorship in New Mexico is that it must function under the owner's surname unless they file a DBA in New Mexico.2. General Partnership
This structure of business consists of two or more owners. Here you do not have personal assets protection. However, you have unlimited personal liability for debts and obligations.
New Mexico general partnership naming rules state that your business name must include the surnames of all owners.3. S Corporation
An S corporation is more of a tax classification. Your L.L.C. or corporation may be an S corporation. Depending on which business structure (L.L.C. or C corp.) you choose, you'll have to follow their naming rules.
Crafting A Good Name For Your Business In New Mexico
Now that you know all the rules for naming your business, it's time to come with the perfect brandable name. For this, you need to:Choose A Good Brand Strategy
- The first step of crafting a winning name is selecting your desired brand strategy. It mainly depends on whether you want your legal business and brand names to be the same or different.
- If you're filing for an L.L.C. or corporation, then you'll have to register your legal name as your brand name.
- If you decide to go with a different brand name, you'll have to file a 'D.B.A.'
Moreover, if you want to use multiple brand names, you'll have to file for various D.B.A.s.
Ways To Brainstorm
A good idea for coming to the perfect business name is brainstorming for at least half an hour. You should keep a paper and pencil or a document open and note down potential names here. A couple of great ways to brainstorm are:
- Putting on a timer and writing as many things that come to your mind.
- Correlating your above-written words together with your business's mission, objective, or service/product.
- Mind mapping is another excellent way to end up with a chart of creative names.
Things To Do And Not Do
When naming your business, there are certain things that will connect you with your targeted audience. And particular things you will want to avoid.
- Create a name that symbolizes something positive about your brand.
- Make sure your name sounds catchy and good to say.
- Ask a couple of your friends or partners to provide constructive feedback on the title. Plus, make sure you like your chosen business name.
- Another thing you can do is getting your business, the '.com' domain name. It is because customers associate this domain name with well-established businesses.
- Make sure your name is not hard to spell and type. You want your name to be simple yet catchy, aka the best way to connect with consumers.
- Your business name shouldn't limit your growth to your original and/or specific product.
Conducting Name Searches
The last part of naming your business includes ensuring your name is unique on a legal level. There's a chance your desired name may already be in use. In these instances, you'll have to come up with a new name.
If you chose an L.L.C. or corporation business structure, you'd have to conduct a New Mexico Secretary of State search. You can do this on the New Mexico website. It is to ensure your name isn't confusingly similar to another business.
Furthermore, if you choose an informal business structure, you won't have to conduct a state-level search or maintain a registered agent. However, if you add a domain name to your business name, you should make sure it isn't already taken.