Texas DBA Formation in Easy Steps
Starting a DBA in Texas as a business owner might be advantageous for your small enterprise. A DBA may be useful in allowing you to operate under a different business name than the one that serves as its legal name.
While establishing a DBA in Texas is not difficult, there are important details to be aware of. Your business entity will have a big impact on how you set up your DBA. And you’ll need to fill out different paperwork depending on it. The basic stages to starting a Texas DBA are listed below.
A DBA Is What?
An abbreviation for doing business is a DBA. If a company wants to operate under a name other than its legal name, DBAs can be useful.
DBAs are also referred to as assumed names in Texas.
Which Corporate Bodies Do DBA Filings in Texas?
In each county where they maintain a business office, the following legal entities for business in Texas must file an assumed name certificate with the county clerk’s office:
- Broader partnerships
- Joint endeavors
- Single-person businesses
The county clerk’s office and the Secretary of State will receive assumed name certificates from the following commercial entities:
- Corporations (for-profit, nonprofit, professional, or other incorporated entities)
- Limited liability companies (including professional limited liability corporations) (including professional limited liability companies)
- Confined liability companies
- Exclusive collaborations
- Associations for professionals
Additionally, these organizations are required to have a registered agent file in the county of the DBA’s principal office, if it is in Texas, or the registered office, if it is outside of Texas.
Important Considerations When Filing a Texas DBA
True name: Keep in mind that you cannot use your real birth name as your Texas DBA in the Lone Star State.
Mistaking your DBA for an LLC or “limited liability company” is illegal. An LLC is a type of corporate structure that provides specific liability protection. Whereas a DBA is essentially a brand identity. Your DBA name cannot include the words “LLC” or “corporation”. To receive the benefits, your company must be registered as a Texas LLC or corporation.
Avoid using it to conceal: Some people might think that using a DBA will secure their identity. These records are public data, even though using a fictional name offers you an alias for your Texas company. Don’t use a DBA to conceal the fact that you are a company’s owner and operator.
Texas DBA Requirements
In Texas, there are two DBA requirements for corporate entities.
Within 60 days of a change, a business entity must submit a new certificate to the Secretary of State or the county or counties where the business is located.
- Accepting a new venture or partner for partnerships
- Termination of a partnership or joint venture
- Organizational structure for businesses or professionals
- Place of registration Ownership (for a proprietorship or sole practitioner)
Regarding assumed business name certificates, Texas has a second prerequisite for a DBA. Business entities are no longer required to file an assumed name certificate with the county clerk if they do so with the Secretary of State.
Texas DBA Filing Fees
Depending on where you file for a DBA, the exact amount of costs you’ll pay will change.
You must pay $25 for each assumed name certificate and $10 for each statement of the abandonment of an assumed name certificate. If you file with the Secretary of State.
If you choose to file your DBA with a Texas county clerk, there can be varying fees.
Do DBAs Require EINs?
To register a DBA in Texas, you won’t require an EIN. The legal name of a company entity, not a DBA name, is used by the IRS to give an EIN.
Starting a DBA in Texas
In Texas, establishing a DBA involves a few steps.
Step 1: A Name Availability Check
To start a DBA, you must first verify name availability. Your DBA name needs to be distinct from any company names registered with the Secretary of State.
You can check the Comptroller of Public Accounts database for small businesses’ entity names, filing numbers, or tax IDs to see if your proposed business name is already taken.
For new business owners, finding a distinctive brand name and (normal-looking) domain to go with it can take some time. This quick and easy tool from Business Name Zone produces name and domain combinations for you depending on your input.
Step 2: Obtain the Certificate of Assumed Name
To start a DBA in Texas, the next step is to get an assumed name certificate. Either a form from the Secretary of State or one from the county clerk will do.
If your company is a sole proprietorship, general partnership, or joint venture, you must fill out an assumed name certificate form at the county clerk’s office.
To use their DBA in Texas, all other business organizations must submit Form 503 to the Secretary of State.
Step 3: Notarize the Form
Choosing whether to notarize the form is the fourth stage in the Texas DBA process. You should be aware of a crucial requirement because it could have an impact on you depending on the structure of your company.
If your company is not incorporated, you must get your form notarized before submitting it.
If you submit an assumed name certificate form (Form 503) to the Secretary of State, it does not need to be notarized. So, this form will be used to file and deliver to the Secretary of State.
We Can Aid with the Texas DBA Formation
The usage of a DBA might be advantageous as your small business expands. You have easy alternatives for launching a DBA in the state of Texas.
We can assist you when it’s time to establish a DBA in Texas. Start your research by working with Your Part Time Accountant entity creation experts.