How to Set Up a DBA in Texas
A company that regularly conducts business or provides a professional service under a name other than its legal name must file an assumed name certificate with the county clerk. The legal name of a business entity is the name stated in its certificate of formation or comparable document. A business that operates under an assumed name but fails to file an assumed name certificate may be subject to both civil and criminal penalties for failure to file the assumed name notice. An assumed name certificate is commonly known as a DBA, for "doing business as."
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Instructions
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Determine where an assumed name certificate must be filed. Non-corporate businesses must file an assumed name certificate with the county clerk in each county in which the business will operate.
Corporations must file an assumed name certificate with the clerk of the county that contains the corporation's registered office. However, if the corporation's registered office is different from the principal office, an assumed name certificate must be filed with the clerk of the county where the corporation's registered office is, and with the clerk of the county that has the principal office.
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Contact the county clerk of each county in which the business is required to file. Obtain a copy of an assumed name certificate or DBA application from each county and complete the application. Ask the clerk's office how much the total filing fee will be. In 2010, it was $15 plus a fee for each partner.
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Search the county records for the exact assumed name under which the business wants to operate. In each county that you will be filing, search for the DBA in the county's Assumed Name Books, or use computers that the clerk's office makes available for DBA searches.
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If the DBA is listed as registered to another business, ask the clerk's office to check whether that DBA has been abandoned. Select another DBA if the assumed name is registered and has not been abandoned.
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Complete the DBA form. Have it notarized. Take the DBA form and filing fee to the county clerk's office in each county in which the business is filing. The clerk's office will keep the original and give you one certified copy of the DBA. Ask the clerk's office for two additional certified copies of the DBA for your files. In 2010, the cost of a copy of a DBA was $1 and the cost of certification was an additional $5.
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Tips & Warnings
A DBA is effective for no more than 10 years from the date the certificate is filed. A DBA may be renewed by filing a new certificate within six months of the expiration of the original certificate.
For a nominal fee, some counties will search the county records for the DBA that the business wants to operate under. In 2010, Travis County charged $10 per search. Dallas County will not search the county records for a DBA.
Filing a DBA gives the general public notice that a business is operating under an assumed name. A DBA filing does not give the business entity any right to use the name when contrary to the common law or statutory right of unfair competition, unfair trade practices, and common law copyright or similar law.
When selecting a DBA, it is important to thoroughly search assumed name records. If a corporation and an unincorporated company, or two unincorporated companies, have very similar names and there is a problem, neither automatically has the right to the name. If both properly filed a DBA, the courts will most probably have to decide.
In 2010, there was no provision under the law for amendments to or corrections of a DBA. Rather, a business entity must file a new DBA with amended or corrected information within 60 days of events that necessitate the filing, such as a change in the name or form of business of the assumed name registrant.
References
- Texas: Business and Commerce Code: Title 5, Section 71, Assumed Business or Professional Name (April 2009)
- Texas Secretary of State
- Texas Secretary of State: SOSDirect: Online Business Service
- Dallas County: Dallas County Clerk: Frequently Asked Questions - Assumed Names
- Texas Department of Commerce: How to Register Your Business Name in Texas
- Travis County Clerk: Assumed Names (DBAs)
Resources
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