Want to file a DBA in Texas but not sure where to start? Whether you’re forming a new business or expanding an existing one under a different name, we’re here to help.
Considering that Texas ranked third on America’s Top States for Business in 2024, filing a DBA can help you capitalize on this thriving economy and establish a strong brand presence.
Image via CNBC
Understanding and executing the filing process correctly is crucial to ensure smooth business operations and avoid legal issues in the state.
In this guide, we’ll walk you through everything you should know about filing a DBA in Texas. We’ll cover everything from eligibility and benefits to step-by-step instructions and renewal requirements.
Let’s get started.
What Is a DBA in Texas?
A Doing Business As or DBA, also known as assumed name, fictitious business name, or trade name, is a name a business uses instead of its legal name. It helps your business operate and market under a more recognizable brand name, enabling you to reach more customers.
However, it’s important to understand the difference between your legal business name and your trade name. Your DBA in Texas doesn’t replace your official business name. It just provides flexibility in how you present your business to customers.
For instance, if your legally registered business name is Texas Roofing LLC, you can operate under a catchier trade name like Lone Star Remodeling. This is the advantage of registering a DBA in Texas.
What’s more, a DBA doesn’t create a separate business entity. It’s not similar to a legal business structure, such as a partnership, sole proprietorship, LLC, or C-corporation.
Although it’s a legally recognized name, it doesn’t offer liability protection or tax benefits. Your business will still need to operate under its registered entity while using the DBA for marketing and operational purposes.
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Who Can File a DBA in Texas?
Any business operating under a name other than its legal name must file a DBA in Texas. Whether you’re running a roofing company or a floral business, you must register a DBA to avoid penalties.
Here are the types of business entities that may need to file a DBA in Texas:
Sole Proprietors and General Partnerships
A sole proprietorship is owned and operated by one individual without forming a separate legal entity. Since the owner and the business aren’t separate entities, the sole proprietor conducts business under their name. You must apply for a DBA if you’d like to operate your business using a more professional name.
On the other hand, two or more individuals can form a general partnership without forming a formal entity. This type of structure is usually identified by the partners’ last names. If they want to operate under a more distinct name, they must file a DBA in Texas.
Since sole proprietorships and general partnerships aren’t registered at the state level, they should file a DBA with the county clerk’s office in the county where they conduct business.
Limited Partnerships (LPs) and Limited Liability Partnerships (LLPs)
A limited partnership (LP) consists of general and limited partners. The general partners manage the business and assume liability, while the limited partners contribute capital but have limited liability.
On the other hand, a limited liability partnership (LLP) provides personal liability protection for all partners.
An LP or LLP that wants to operate under a different business name than the one registered with the state must file a DBA. Unlike sole proprietorships and general partnerships, LPs and LLPs are registered at the state level and should file their DBA with the Texas Secretary of State.
Limited Liability Companies (LLCs)
A limited liability company (LLC) is a common business structure that provides liability protection to its owners while maintaining operational flexibility. When you form an LLC, it’s registered as a separate legal entity with the Texas Secretary of State under a specific legal name.
You can file a DBA in Texas if you want to launch a new product line or expand your market without forming a separate LLC. An LLC can also register multiple DBAs, allowing it to operate under different names for various products, services, or locations while maintaining the same legal entity.
Like LPs and LLPs, your LLC must file a DBA in Texas with the Secretary of State.
Also Read:
- LLC Member vs Manager: Which Structure Fits Your Business?
- Sole Proprietorship vs. LLC: Everything You Need to Know
C and S-Corporations
The difference between sole proprietorships and partnerships vs S-corp and C-corp is that the latter are legal entities separate from their owners or shareholders.
While they’re taxed differently and governed by separate rules, they operate under their registered business names unless they file a DBA in Texas at the state level.
Nonprofit Organizations
Nonprofits are tax-exempt organizations that operate for charitable, educational, religious, or social causes. If your nonprofit organization runs various programs or initiatives, using different names for specific projects would be ideal, which requires you to file a DBA in Texas.
For instance, if “Texas Animal Rescue Foundation” wants to brand its adoption program as “Paws for Hope,” it would need to register a DBA to be able to use that name legally.
Since nonprofits are registered with the Texas Secretary of State, they must also file their DBA at the state level.
Why Do You Need a DBA in Texas?
Filing a DBA in Texas has several legal and operational advantages, whether you run a sole proprietorship, an S corporation, or an LLC in Texas. To maximize the benefits and make the process easier, work with the best registration professionals like MyCompanyWorks.
You don’t want to miss out on the following benefits of filing a DBA in Texas.
Ensures Legal Compliance
Texas law mandates that any sole proprietorship, corporation, partnership, or LLC using a trade name must register with the state or appropriate county.
Failing to file a DBA in Texas is rendered as a class A misdemeanor. It can result in legal penalties, including fines and restrictions on business activities. For example, you may not be able to enforce contracts or open a business bank account under your DBA.
Provides Branding and Marketing Flexibility
Filing a DBA in Texas allows you to create a unique, easily marketable, and recognizable brand identity without forming a new legal entity.
Instead of using a generic or personal name, you can create a trade name that resonates with your target audience and aligns with your products or services.
For instance, Unilever PLC markets its diverse product lines using distinct trade names. Some popular names include Dove, Knorr, Omo, Ben & Jerry’s, Axe, and more.
Image via Unilever
More Cost-Effective Than Forming a New Business Entity
Starting a new business entity requires additional paperwork, filing fees, and ongoing legal requirements. Instead of forming a new business entity for each business venture, you can file a DBA to operate under different names.
It’s a more affordable and straightforward option compared to registering multiple legal entities. Unlike legal business entities, DBAs don’t require you to file annual reports or pay additional taxes. This means you can execute all your creative business ideas without worrying about extra costs.
Gap Inc. is an excellent example of a business that runs different retail stores under the same company. Some of these stores include Old Navy, Gap, Banana Republic, and Athleta.
Image via Gap Inc.
Offers Expansion Opportunities
Registering a DBA in Texas can empower you to diversify your offerings and expand into new markets while maintaining a single legal entity. This flexibility can be the key to scaling your business and diversifying your income.
Let’s take a look at how filing a DBA in Texas can help expand your business:
- Launch new product lines under different brand names: A DBA allows you to market new products, targeting different customer segments under distinct brand names.
For instance, if you own an online cosmetics shop, you can file a DBA like “Aurelia Luxe” for your high-end skincare line and “PopGlam Cosmetics” for your teen makeup line.
- Enter different industries: A DBA enables you to explore new business ventures beyond your original industry. Suppose you own an entertainment company and want to start offering event catering services. To do this, you could file a DBA like “Savor & Serve Events.”
- Establish multiple storefronts, websites, or branches: If your business operates in different locations or on different online platforms, a DBA allows you to use unique names tailored to each market.
For instance, if you run a virtual bookkeeping business, you can file a DBA for different websites.
Amazon, a popular ecommerce platform, has diversified into different industries with various trade names, such as Amazon Prime Video, Amazon Kindle, Amazon Music, and more.
Image via Amazon
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Texas DBA Name Requirements and Restrictions
Before filing a DBA in Texas, you should understand the state’s specific naming requirements and restrictions to avoid application delays or rejections.
Naming rules and limitations in Texas state that your DBA:
Must Be Unique
You cannot use a DBA in Texas that’s already being used by another business or that’s too similar to an existing registered name. This rule helps prevent confusion among consumers and protects the branding of registered businesses.
Shouldn’t Mislead the Public
A DBA in Texas must not mislead consumers regarding the business’s nature, structure, or services. The state prohibits businesses from choosing assumed names that falsely imply:
- Government affiliation: You can’t choose a DBA like “Texas State Agency Consulting” when you’re not a government entity.
- Illegal activities: Since gambling is restricted in the state, you can’t file a DBA for a gambling business.
- Professional licensing: You can’t use a name like “Texas Law Experts” if you’re not a licensed law firm and lack credentials.
To avoid application rejection, pick a name that accurately represents your business’s legal standing and activities. You can also leverage business legal services to help ensure that your DBA adheres to all applicable regulations.
Doesn’t Include Restricted Words and Terms
Certain words and phrases are restricted or regulated when filing a DBA in Texas. These restrictions help protect consumers from fraudulent or misleading business practices. Common restrictions you should check before you file a DBA in Texas include:
- Entity-specific terms: You can’t use words like “corporation,” “LLC,” “incorporated,” or “ltd.” in a DBA unless your business is legally registered under that entity type.
- Financial institution terms: Names that suggest a bank, trust, credit union, or insurance company require approval from Texas financial regulators.
- Professional titles: Terms like “doctor,” “attorney,” or “engineer” are restricted unless you have the proper licenses to practice in Texas. For instance, if you own a personal service corporation and want to use a professional title in your DBA, you must provide proof of licensure from the relevant Texas regulatory board.
Registering a DBA in Texas does not grant trademark protection. Even if the state approves your DBA, another business with a registered trademark on the same name could still take legal action against you.
Before you file a DBA in Texas, check existing state trademarks through the Texas Secretary of State and conduct a federal trademark search using the US Patent and Trademark Office (USPTO) database.
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- Important Legal Requirements for Starting a Small Business
- Low-Risk Business Ideas to Start Your Own Venture
How to File a DBA in Texas: Step-by-Step Process
You’re probably wondering what you need to file a DBA in Texas, along with where to apply and how to do it correctly. While this process can be a bit overwhelming, with proper guidance, you can navigate it seamlessly.
Here’s a detailed step-by-step guide on how to file a DBA in Texas:
1. Choose Your DBA Name
The first step is coming up with your official DBA in Texas. Keep in mind the guidelines discussed above. Also, here are some best practices when selecting your trade name:
- Confirm availability: Search the state’s database and check with the county clerk’s office to ensure no other business has registered the name. Search the USPTO database as well to avoid any trademark conflicts.
If you’re still uncertain, you can employ online incorporation services for a thorough check and peace of mind.
- Make it simple and memorable: Customers are more likely to recall and recommend a business with a clear, straightforward name. Pick a short, unique name that’s easy to pronounce, spell, and remember.
- Ensure it reflects your brand identity: Your DBA in Texas should align with your business’s mission, industry, and values. For instance, if you own a bakery, a name like “Sweet Treats Bakery” instantly communicates what your business does.
- Check for a matching domain name: If you want to establish an online presence, choosing a DBA that matches an available domain name can make it easier for customers to find your business online.
You can check domain name availability on some of the best domain registrar sites like GoDaddy, Namecheap, or Hover. If your chosen domain is available, purchase it immediately so that someone else can’t claim it.
2. Gather the Required Information
After deciding on your DBA name, ensure you have all the required information, including specific legal documents and business details, before filing. Preparing these in advance will prevent delays.
Here’s the information you’ll need for filing a DBA in Texas:
- Your DBA name: This is the assumed name under which your business will operate in Texas.
- Business owners’ names and addresses: Whether you’re a sole proprietor or have partners, you’ll need to list the names and addresses of the owners.
- Legal business structure: Indicate whether your business is a sole proprietorship, partnership, LLC, or S or C-corporation.
- Business address: This is the complete physical location of your business.
- Business purpose: Briefly describe the nature of your business operations.
- Duration of the DBA registration: Indicate how long you intend to use the DBA name. In Texas, the maximum allowed duration is 10 years.
3. Confirm Your Filing Location
Where you file your DBA in Texas depends on your business structure. If you’re a sole proprietor or general partnership, you must apply for your DBA at the county level in every county where you conduct business. This means that if you operate in multiple counties, you must file separately in each county.
You can visit your local county clerk’s office to obtain the required DBA filing form and submit it in person or via mail. Alternatively, you can submit your DBA application online through your county’s official website.
The good news is that several online service providers can help you easily file a DBA in Texas. Consider checking ZenBusiness and its alternatives to find the right fit.
As for corporations, LLCs, limited partnerships, and limited liability partnerships, they must file at the state level, submitting Form 503 to the Texas Secretary of State. Like the county-level applications, you can also file a DBA in Texas by submitting your form in person, by mail, or online via the state’s SOSDirect website.
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4. Complete and Submit Your DBA Application
To officially file a DBA in Texas, fill out the appropriate form based on your business structure and filing location. Each jurisdiction may have slightly different requirements, so verifying specific instructions beforehand is essential.
Ensure you file your DBA correctly to avoid any legal or administrative issues. Submitting incomplete or incorrect information can also lead to your application being rejected, forcing you to reapply and pay additional fees.
With that in mind, fill out the Assumed Name Certificate accurately using the business details you gathered earlier. Some counties also require the form to be notarized before submission. If this is the case, make sure you sign the document in front of a notary public.
After completing your DBA application, submit it through the county clerk’s office or the Secretary of State.
If you choose to file online, LegalZoom or alternative services can help you successfully register a DBA in Texas and avoid unnecessary complications. The right service can even help you expedite the DBA registration and approval process.
5. Pay the Filing Fee
The next step in filing a DBA in Texas is paying the DBA filing fee, which varies depending on whether you’re filing at the county or state level.
If you’re a sole proprietor or general partnership filing at the county level, expect to pay anywhere from $15 to $25. Confirm the exact cost with your county clerk’s office. Some counties may also require an additional notarization fee.
An LLC, LP, LLP, C-corp, or S-corp in Texas will need to pay the $25 state filing fee. Available payment options may vary depending on where and how you file. However, here are the most common ones:
- Credit or debit card: Most online and in-person filings allow payment via major credit and debit cards, such as Visa, Mastercard, and American Express.
- Electronic check (eCheck): Some online filing systems may allow payments via eCheck, which directly debits your bank account.
- Cash: Some county clerk offices may accept cash payments for in-person filings. However, you should confirm with your specific county office beforehand.
6. Retain Copies of Your DBA Certificate
After successfully filing and receiving approval for your DBA in Texas, it’s vital to retain copies of your DBA certificate, also known as an Assumed Name Certificate.
This document provides legal proof that your business is registered under the chosen name and is authorized to operate under that alias.
Here’s why it’s important to keep copies of your DBA certificate:
- Compliance with legal requirements: In the event of a legal dispute or audit, having your DBA certificate readily available ensures you can provide proof of compliance.
- Opening a business bank account: If you want to open a bank account under your assumed name, the financial institution may request the certificate alongside your Tax ID.
- Business contracting and agreements: Some suppliers, partners, or clients may request a copy of your DBA certificate before signing contracts or service agreements.
- Renewals and amendments: If you need to renew a DBA in Texas or make changes to an existing one, such as updating ownership details, you may need to provide a copy of the original certificate.
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What to Do After Filing Your DBA in Texas
Filing a DBA in Texas just grants you the legal right to operate under an assumed name. To truly reap the benefits of your DBA and ensure your business runs smoothly, you should take these additional steps:
Open a Business Bank Account
After registering a DBA in Texas, one of the most critical steps is opening a business bank account under your assumed name. It allows you to separate your personal and business finances for legal, financial, and taxation purposes.
Here are some benefits of opening a business bank account:
- Legal and financial protection: Keeping business and personal funds separate protects your personal assets in case of legal issues.
- Increased professionalism and credibility: Customers and vendors are more likely to trust your business if it has an official bank account.
- Simplified accounting and tax filing: A business account makes it easier to manage expenses, track income, file taxes, and manage cash flow. Working with trusted bookkeeping services can further streamline this process by ensuring accurate and organized financial records.
To open a business bank account, you’ll need your Assumed Name Certificate, Tax ID number, and business formation documents. However, check the requirements of your preferred bank before applying, as these can vary with each bank.
Establish an Online Presence
Now that you’ve officially registered your DBA in Texas, you can use it to create an online presence for your brand. A strong online presence helps customers easily find your business, builds credibility, and boosts brand awareness.
Even if your business operates offline, an online presence can help attract new customers to your physical location. For instance, if you have a consulting business, your clients can book appointments online and visit your physical office for a consultation.
Here’s how you can establish an online presence after filing a DBA in Texas:
- Create a professional website: Use website-building platforms like GoDaddy to build a business website that showcases your services, products, and contact details.
- Set up social media accounts: Create official business pages on Facebook, Instagram, LinkedIn, Twitter, and other platforms where your target audience spends most of their time.
- Claim your Google Business Profile: If you operate locally, create a Google Business Profile and optimize it to appear in local search results and Google Maps.
Use Your DBA for Branding and Marketing
After registering a DBA in Texas, you can use it to brand and market your services or products. If you already have multiple LLCs, you can file separate DBAs to market different product lines or reach different customer segments without creating more legal entities.
Let’s take a look at the various ways you can brand and promote your business under your DBA in Texas:
- Create a logo and update business materials: Design a professional logo and incorporate your DBA into your business cards, flyers, and brochures. Use consistent colors, fonts, and visuals across all marketing materials.
- Run advertising campaigns: Use your DBA in online ads, social media marketing, and print advertising to promote your business.
- List your business in directories: Register your DBA with local and national business directories, such as Yelp, Yellow Pages, and Chamber of Commerce websites.
Keep Up With Renewal Deadlines
A DBA in Texas needs renewal every 10 years to remain valid. If you fail to renew it on time, your business name could expire, allowing others to register it. To avoid disruptions and ensure you never miss a deadline, follow these best practices:
- Set calendar reminders: Mark your renewal date on a digital or physical calendar. However, if you file a DBA in Texas using a registration service provider like MyCompanyWorks, they send timely renewal notifications and can even handle the renewal process. This can help save you valuable time and ensure compliance.
- Check with your filing office: Different counties may have different renewal procedures, so confirm the process with the county clerk or the Texas Secretary of State.
Also Read:
- When and How Should You Start Multiple LLCs? A Guide
- How to Start Your Freelance Business: A Quick Guide
FAQ
1. How do I set up a DBA in Texas?
To file a DBA in Texas, follow these steps:
- Check the naming requirements
- Prepare your business details
- Select your DBA name
- Confirm your filing jurisdiction
- Fill out and submit your application form
- Pay the registration fee
- Make copies of your certificate
2. How much does it cost to file a DBA in Texas?
The filing fee for a DBA in Texas varies by location and business type. County-level filings for sole proprietors and partnerships range anywhere from $15 to $25. State-level filings for LPs, LLPs, LLCs, and corporations cost $25 through the Texas Secretary of State. Some counties may also charge additional administrative fees.
3. How long does it take to file a DBA in Texas?
Processing time depends on where you file your DBA in Texas. County-level DBAs are usually processed within the same day or a few business days. State-level DBAs take around 5–10 business days for standard processing or sooner if you pay for expedited services.
4. How long does a DBA in Texas last?
A DBA in Texas is valid for 10 years from the registration date. You must renew it before it expires so you can continue using it. If your DBA expires, you may lose rights to the name and need to refile.
5. Do I need an EIN for my DBA in Texas?
A DBA itself doesn’t require an EIN, but if your business has employees or operates as an LLC, corporation, or partnership, you’ll need an EIN for tax purposes. Sole proprietors without employees can use their Social Security Number (SSN) instead.
Ready To File a DBA in Texas?
Filing a DBA in Texas is a straightforward process, but following the correct steps is important to ensure legal compliance. Filing requirements and rules will vary based on your business type and structure.
Whether you’re a sole proprietor, partnership, LLC, or corporation, properly registering a DBA allows you to establish a unique business identity. By following this step-by-step guide, you can successfully register your DBA in Texas and build a recognizable brand.
If you’re uncertain about any step, our professionals at GovDocFiling can provide clarity and streamline the entire filing process.
Don’t let the paperwork slow you down. Start your DBA registration with expert services today!