A business cannot be sued under its assumed name because the assumed name does not create a legal entity. It simply is a named assumed by an existing legal entity. Therefore, while your business can operate using a registered assumed name, it must use its legal name for any legal transactions, including signing contracts or leases and buying inventory.
More than one business can have the same assumed name registered in Texas. Therefore, you cannot prevent another company for using your “assumed” name just because you have an assumed name certificate.
Franchising is another common reason for getting an assumed name. For example, if “Lexus” was opening a branch in Texas, the registered legal name would simply be “Lexus. ” However, the particular franchisee may want to use the assumed name “Lexus of Houston” in the community.
Run a trademark search to be sure that the name is not trademarked. You can check the federal database here. Registering the DBA name does not allow you to use the name if doing so would infringe on someone else’s legal rights to the name. To search online, visit the state of Texas’s SOS direct website and request an account. Each search you run will cost $1. You can also visit your county clerk’s office in person and ask an employee to check the name’s availability. They may charge a small fee.
The downloadable version of the form is a PDF (portable document format) file. You may have to download software that will let you open it on your computer. Adobe Acrobat Reader is a free program that will allow you to open and read the document. [4] X Research source Once you’ve opened the application, print it so you can fill it out.
Sole proprietorship: you are the only person involved in the business. You and the business are one in the same. This is a very simple model, but it also means that you have all the responsibility, including any debt the business might take on. [6] X Research source Sole practitioner: You are the only owner of the business, but you might hire support staff like assistants or salespeople. General partnership: Two or more co-owners share the duties of management equally. Limited partnership: A limited partnership also has two or more co-owners. However, in this case, they don’t share investment or responsibility equally. One owner may simply be an investor who holds 25% of the business, while the other owner runs the business and owns 75% of it. [7] X Research source
The assumed name you want to use. Basic contact information for your business. This should be the address where your business receives mail, not your personal address The structure of your business Any file number that is already assigned to your business. To find out if you have a file number, call the Secretary of State’s office or look on SOS online under your business’s legal name.
The jurisdiction and address of your main office, if different from the business location you’re filing for. This does not have to be in Texas. The office address for your business’s main location in Texas, if your main office is not in Texas. The duration that you will be using the assumed name for. The maximum duration is 10 years, although the form can be renewed at the end of this time. he county or counties where the assumed name will be used.
If you choose to mail the form, scan or photocopy it and retain a copy for yourself. Make sure to include your payment with the application (see next step). Submitting the application in person is useful if you have questions. The employees at the county clerk’s office will check your forms to make sure everything has been done correctly.
Counties often charge a fee for this service, but you should always do it. It’s better to have that peace of mind than save a few dollars.
If you don’t want to use the assumed name anymore, you must file a certificate of abandonment, which is Form 504. [10] X Research source You cannot amend a DBA certificate. If you want to change the name of your business, you must fill out a new form.
