How to Register a Small Business Name in Texas
It`s important to thoroughly research what is legally required to start and run a business. You don`t need a DBA to do business under your own name (if you`re a sole proprietor) or a legal business name (if you`re a corporation or LLC), but you`ll usually need a DBA if you`re using a different name or alias. By default, sole proprietorships operate under the same name as the owner, while partnerships must include the surnames of all partners. Texas doesn`t offer a statewide general business license, but depending on your type of business, you may need to purchase a specific license to work. A DBA, which means “doing business like,” refers to the fictitious or borrowed name under which a company registers and then operates in a particular field. The DTA can be limited to a single city or function in multiple counties in one or more states. TIP: We work with a company that can obtain and prepare business licenses and approvals for you. Click here to learn more. With over 15 years of experience owning small businesses, including a state agricultural agency in Southern California, Kimberlee understands the needs of business owners firsthand. When she`s not writing, Kimberlee enjoys waterfall hunting with her son in Hawaii.
A DBA is a great start to growing your business in Texas. However, keep in mind some important things you can`t do with a fictitious business name in the Lone Star State. DBA: Your fictitious company name must be valid for 5 years (unless you change the company name or other information listed on the NBF), after which you must renew it with the county. Texas is home to more than a dozen companies on the Fortune 100 list of “best companies to work for.” Small businesses account for more than 45% of all jobs in the Lone Star State. When you submit to the Secretary of State, you do not have to submit a certificate of the accepted name with an original signature. Facsimile copies and photocopies of signed certificates may be submitted. Accepted certificates of names submitted to the Secretary of State do not need to be notarized. Form 503 (Word, PDF) can be used to file with the Secretary of State. No. However, the law requires a registrant with an assumed name to file a new certificate for aliases if the information contained in the certificate is or becomes materially misleading.
Certain events can cause the information contained in a certificate to become materially “misleading”. For example, a change in the name, address or business structure of the licensee would be considered a material change. If a significant change has been made, a new certificate of the adopted name must be submitted within 60 days. See Tex. Bus. & Communication Code ยง71.152. If you are unsure whether you need to file a name registration or an application for registration, please contact your private lawyer. The Guide for Small Business provides a comprehensive overview of business planning, registration, requirements and financing.
In your search, you should not only check if the exact name of your company is available, but also that there are no other companies that use significantly similar trade names. The Secretary of State has a Form 504 Word (PDF) that can be used to submit a certificate of surrender of an assumed name registered with the Secretary of State. If you have submitted a certificate of an assumed name to the county official and wish to submit a certificate for the assumed name, do not use Form 504. Different enforcement requirements apply to the filing of a declaration of termination at the district level. Yes. Sections 71.201 and 71.202 of the Texas Business & Commerce Code provide civil and criminal penalties for failure to comply with Chapter 71 provisions regarding the adopted name. That depends. Filing a name registration does not give a company the authority to do business in Texas. A valid name registration prevents another institution from filing under a legal or fictitious name that cannot be distinguished in the Secretary of State`s records. The registration of a name is valid for one year and can be extended.
Recommended content: If you`re not sure what type of entity to choose for your business, check out our guide on how to choose a business structure. An application for registration, formerly known as a certificate of authority, is filed by a foreign corporation, limited liability company, limited partnership, limited liability company, trade association, or other foreign entity as listed in Section 9.001 of the Texas Business Organizations Code if the corporation operates in Texas. Filing an application for registration gives a foreign depositary authority the authority to do business in Texas. However, the need to apply for registration depends on the nature and scope of the company`s activities in Texas. In addition, a foreign company may need to file an application for registration with the Secretary of State to comply with other government legal requirements. To form a Texas corporation, you must file articles with the Texas Secretary of State. The process of forming a corporation is called incorporation. Similar to registering an LLC, a Texas corporation must include an identifier that clearly indicates that the company is structured as a corporation, such as: First, what exactly is a DBA? The acronym, which stands for doing-business-as, effectively means that you work under a name separate from your existing legal identity.