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W hile Texas is known for its simple business regulations, the state does have some unique forms, requirements and terminology for small business owners to navigate.
If you’re starting or doing business in Texas, you might want to know more about how to file a Texas DBA. Here's every step of the process and everything you need to know about how to file a DBA in Texas.
The acronym DBA stands for Doing Business As. Your DBA is the name you will conduct your business under. A DBA is most often used if you would like to do business under a name that is different from your legal name. In Texas, a DBA is commonly referred to as an assumed name and the filing is referred to as an Assumed Name Certificate.
In Texas, a DBA is an official filing you will register for with the local, county and/or state government of Texas, depending on your business structure. Remember, your DBA will indicate the name your company, or you personally, are doing business as in Texas.
You can file a Texas DBA regardless of the type of business entity you have registered as, whether your business is operating as an LLC, corporation or even a sole proprietorship. However, a Texas DBA alone will not protect your personal assets or provide you with liability coverage.
It is simple to register for your Texas DBA on the state’s online business services website, SOSDirect. You will have to log into the system to fill out your form electronically.
The SOSDirect site is a bit clunky to use and will require you to enter payment information upfront. In addition, the website automatically signs you out after 15 minutes of inactivity. If you are not comfortable with a computer, using a system like SOSDirect can be frustrating. You can also complete a paper filing for a DBA in Texas.
Payment can be made in person using a personal check, money order, LegalEase debit card or credit card.
Whether or not you file your Assumed Name Certificate online or on paper, you will need the following information to fill it out correctly:
If you choose to do business as a sole proprietor, you will need to file your Texas DBA at the county level in addition to the state level. Remember, filing for a DBA will not protect you personally from liability. It will only allow you to do business under a name that is different from your legal name.
Before you decide on your DBA, you will want to search to see if an entity name is available in the state of Texas. This can be done through the Texas Comptroller’s Name Database, but keep in mind there is a $1 fee for each search conducted. If you would like to do further research, check with the United States Patent and Trademark Office. You can also use Bizee’s free Business Name Search database.
You want to make sure you are not choosing a name that is already in use by a company that does business in an industry similar to yours or in your state. If you choose a name that is already in use and trademarked, you risk being accused of trademark infringement. It is your responsibility to search assumed name records in the county where you do business to make sure no other business has the same name.
Remember: A DBA is not the same as a trademark and will not protect you from trademark infringement.
As a sole proprietor, you will be required to register your DBA at the county level in Texas. Find your county clerk through the Texas Secretary of State’s complete listing and pay them a visit to find the correct forms you will need to file. You will need to do this for every Texas county where you plan to do business.
If your business is an LLC, LLP or a corporation, and if you regularly conduct business under a name other than your legal name, then you must file a DBA with the Secretary of State in Texas. You will need a DBA if you use a different name on your sign, website or in your logo than your LLC name. If you are an LLC, LLP or corp, you are not required to file a DBA with a county clerk.
LLCs, LLPs and corporations will first need to make sure that the name they are filing for is not in use in the state of Texas and that it meets certain requirements. First, conduct an online business entity search through the Texas Comptroller’s Name Database and pay $1 per search or use Bizee's Business Name Search Tool.
Next, you will want to make sure you follow a few rules when creating your DBA:
Filing and doing business under a DBA/assumed name is not the same as incorporating or forming a business like an LLC. Filing an assumed name certificate/DBA simply establishes a link between the DBA/assumed name and the person (sole proprietorship) or business entity (LLC or Inc) that uses the DBA/assumed name.
An assumed name, or DBA, is good for up to 10 years in Texas. If you plan on being in business under this name for a long time, then make sure to choose the 10-year option on your form so that you don’t have to worry about filing again for a decade.
When you file your assumed name certificate in Texas, you will state the duration of the filing on the form. This can be no more than 10 years. Assuming you choose the maximum term, you’ll need to file a new assumed name certificate every 10 years.
You can also renew your Texas DBA by filing Form 505 - General Information (Application for Renewal of Registration of an Entity Name). The renewal will cost $40 and is payable by check, money order or LegalEase® (a deposit account system administered by Frost Bank). You can also pay online using a debit card or a major credit card. Credit card payments are subject to a 2.7 percent processing fee.
Unfortunately, you cannot revise an existing DBA in the state of Texas. You would need to withdraw your DBA and fill out a new Assumed Name Certificate form for your new DBA.
For those who want to get rid of an existing DBA, use Form 504, Abandonment of Assumed Name Certificate. There is a $10 filing fee for this form. For sole proprietors and other businesses with DBAs/Assumed Names through the county, you will need to send the form to the county clerk, and it may need to be notarized with original signatures. Talk with your county clerk’s office for specific instructions.
Once you have our Texas DBA, you’re ready to put your name out there. Here are your next three steps:
It’s understandable to still have questions about how to file for a Texas DBA. Some of the frequently asked questions regarding a Texas DBA include:
A DBA is the same thing as an assumed name. In Texas, these terms are used interchangeably, but the official name with the Texas state government is assumed name.
The filing fee for an assumed name certificate with the secretary of state of Texas is $25. You may pay this fee by personal check, money order or a LegalEase debit card. You may also pay online using a credit card but may be subject to a 2.7 percent fee for paying with credit card. The fee for registering for a DBA or Assumed Name Certificate with the county clerk’s office will range between $15 and $25.
A Texas DBA is not a business structure. Therefore, a Texas DBA does not afford any tax considerations. In other words, having a DBA in Texas will not change how your business is taxed. However, setting up your business entity may protect you and offer tax benefits.
Your DBA is not a separate business entity. Therefore, you do not need a separate EIN for your DBA.
You can use your DBA in other states, but you will probably need to register your DBA in those states — and possibly counties — too. Check with each state where you are doing business to find out details about how to register your DBA there. There are some states with no filing requirements for a DBA.
Filing for a DBA is an important step for any new business looking to make sure they are following their state and local regulations. The process comes with a lot of boxes to check, especially when you do business in multiple states. Let Bizee help. Our DBA service can make the process simple and give you the time to focus on growing your business.
Nicole Bowman is a freelance writer who thinks turning research into stories is the best gig ever. She started writing billboards back in 2002, worked in book publishing in New York for many years and now she creates all sorts of engaging content for the web. Nicole lives in Rehoboth Beach, DE, with her husband, two sons and their poodle, Tootsie. She loves the great outdoors, bookstores and tennis. Read more
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