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If you’re a small business owner in the Lone Star State, you might want to start doing business under a different name than your own name or your legal business name. Fortunately, by registering a DBA, you can work under a trade name. If you want to know how to get a DBA in Texas but aren’t sure where to begin, this guide is for you.
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Understanding DBAs and How They Work
First, what exactly is a DBA? The acronym, which stands for doing-business-as, effectively means that you’re operating under a name that’s separate from your existing legal identity. That could be your birth name or the pre-existing name of a business entity you happen to own. A “DBA,” is sometimes referred to asr a trade name, fictitious name or assumed name.
Legally “Doing Business As”
The government body with which you register your fictitious name will depend on the type of business you own. A sole proprietorship or general partnership should expect to submit their documents to the County Clerk. At the same time, limited liability companies (LLCs) or corporations are registered with the Texas Secretary of State.
Details to Remember When Filing Your DBA
Before you file your DBA documents, keep in mind what a DBA can and can’t do.
DBAs allow you to do the following:
• Let you operate a business using a pseudonym.
• Aid in letting you open bank accounts using the DBA name.
• Keep you in compliance with state laws that require you to file a DBA if you’re using a business name other than your legal name.
A DBA is an excellent start to setting up your Texas business. However, be aware of a few key things you cannot do with a fictitious business name in the Lone Star State.
• Using your real name: Texas does not allow you to register your real birth name as a DBA.
• Mislabeling your DBA as an LLC or corporation: DBAs are basically a brand identity. If you opt for a DBA, you cannot add “limited liability company” or “corporation” to the name. You must register your business as an LLC or corporation to afford those benefits.
• Anonymity: Some might mistakenly seek out a DBA to protect their private identity. It’s true that a fictitious name provides an alias for your business, these documents are a matter of public record. Therefore, do not create a DBA under the impression that you can hide that you are the owner and operator of the company in question.
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Texas DBA Costs
As you’re preparing to file your DBA paperwork, it’s helpful to have an idea of costs so that you can budget accordingly. Thankfully, filing a DBA won’t cost you an arm and a leg. You should always contact your county clerk to get the most up-to-date information, but at the time of publishing you can expect to pay $25 for an Assumed Name Certificate.
Depending on your line of business, there may be other licenses and permits necessary to operate your business legally in the state of Texas. The federal government also requires these for certain businesses. Visit the U.S. Small Business Administration (SBA) website for details on what industries are regulated and current fees.
How to File for Your Texas DBA
First, establish that the name you want to use is available by visiting the state’s taxable entity search engine. Choosing a unique name helps you brand your business and avoid issues with other businesses that have similar names.
DBA Requirements for Differing Business Entities
Be sure to check where and how to file your DBA forms based on the type of business entity you either own or of which you are a member.
- Sole proprietors or partnerships: These individuals or partnerships will file DBA paperwork in each county where the business has an office. If the business doesn’t have a physical presence in Texas, then the DBA should be filed in each county where it transacts business. Contact the county clerk’s office for information on forms and fees. Locate the correct county contact information through the state website.
- LLCs, LLPs, corporations, or out-of-state businesses: These businesses must complete Form 503 or the Assumed Name Certificate, send completed forms to the Texas Secretary of State and pay $25. These business entities do not have to file with a county clerk.
- Real estate brokers: Please note that the Texas Real Estate Commission or TREC requires brokers to successfully set up their DBAs before registering a trade name with their organization.
Submitting Your DBA Paperwork and Fees to the State
Prior to submission, make as many copies as necessary. For instance, the Secretary of State requires at least two completed copies of your Assumed Name Certificate. Hand in the documents directly by visiting the James Earl Rudder Office Building in Austin.
Alternately, mail your forms to the following address:
Secretary of State
P.O. Box 13697
Austin, Texas 78711-3697
If you choose to send a fax to 512-463-5709, remember to include the payment form.
Always double-check that you’re using the latest forms and paying the correct fees. These items are subject to change over time.
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After You Register Your Texas DBA
Once your DBA is approved, you’re good to go. However, you should be aware that Texas doesn’t allow you to own a fictitious name indefinitely. On the form, you must give a specific period of years during which you expect your DBA ownership to be active. The absolute limit is ten years. Texas law requires you to file a new assumed name certificate for your “doing business as” within six months of the original certificate’s expiration. Otherwise, you will lose your trade name.
Laws, forms, and associated fees change periodically. As of this article, the cost to renew a DBA is $40, though prices are subject to change.
Frequently Asked Questions (FAQs)
What's the difference between an LLC and a DBA?
A limited liability company (LLC) is a business structure that shields owners from debts and liabilities. A “doing business as” (DBA) doesn’t provide owners with any protections.
What is a DBA?
A DBA, which stands for “doing business as,” refers to the fictitious or assumed name under which a business registers and then operates within a specified area. The DBA might be limited to a single city or function throughout multiple counties in one or more states.
Where can I get a DBA?
DBAs are available throughout the United States. Some states require that you file for a DBA through the Secretary of State. Others ask that you submit documentation to the County Clerk. Check with your desired state for the proper procedure for obtaining a DBA.
Is there a limit to the number of DBAs can have?
It’s possible to operate under multiple DBAs, and in theory, the possibility is limitless. You should take care to keep your DBAs and related accounts organized to avoid confusion.
What is the benefit of a DBA?
A DBA allows you to open bank accounts or do other business dealings within the city, county or state where you register it while using a separate business identity from your preexisting legal name.
How long does a DBA last?
The rules regarding how long a DBA lasts vary by state, so you should check with your state’s secretary of state or the agency with which you filed the DBA to see if a renewal is necessary and when it is due. In some states, such as New York there is no need to renew a DBA but other states have limits. In many states, you have five years before you need to renew or extend your DBA.
FAQs
How much does it cost to register a DBA in Texas? ›
Obtaining an Assumed Name or DBA
If you want to establish a DBA in Texas (assumed name), you must file a form with the Secretary of State and pay a filing fee of $25.
Corporations, LLCs, LPs, and LLPs must register a Texas DBA name with the Secretary of State. You can do so electronically via the state's online business services portal, SOSDirect. Sign in to your account to access the Assumed Name Certificate. Complete the form online and pay the required filing fee.
Do I have to register a DBA in Texas? ›In Texas, all corporations, limited liability companies (LLCs), limited partnerships (LPs), limited liability partnerships (LLPs), or out of state companies that regularly conduct business in Texas under a name other than its legal name, must file a DBA with the Secretary of State.
What do I need to do to get a DBA in Texas? ›Filing a DBA in Texas with the County Clerk
Sole proprietors and partnerships are required to file an Assumed Name Registration with the appropriate county clerk's office(s) in order to operate under a DBA. Sole proprietors and partnerships must file in any county where your business conducts or transacts business.
Texas requires that all corporations, limited liability companies (LLCs), limited partnerships (LPs), limited liability partnerships (LLPs), or out of state companies that regularly transact business in Texas under a name different from their legal name, must file a DBA with the Texas Secretary of State.
How long does it take to get a DBA Texas? ›How long does it take to process a DBA in Texas? The Secretary of State processes typically non-expedited forms within 5-7 business days. There are Expedited services available for an additional $25 per document, which are generally processed by close of business the following day.
How long is a DBA valid in Texas? ›The certificate expires at the end of the stated term or 10 years from the date of filing. If the registrant decides to continue using the same assumed name, a new assumed name certificate must be filed prior to the expiration of the current certificate.
How do I get a DBA certificate? ›To do business under a DBA, you must complete and file the appropriate DBA forms and pay a filing fee — after which point you receive a DBA certificate. Depending on the state, you may need to file with a local or county clerk's office, with a state agency, or both.
Can I convert my DBA to an LLC in Texas? ›Updated November 17, 2020: To transfer DBA to LLC Texas will require an authorized party to file a new assumed name certificate with the state of Texas and local offices within 60 days of the transfer. This will update the business ownership information to the new party.
What are the benefits of having a DBA in Texas? ›- Increased Flexibility. ...
- Privacy Protection. ...
- Targeted Branding. ...
- Easy Legal Compliance. ...
- Fewer Tax Benefits. ...
- Fewer Liability Protections. ...
- No Exclusive Rights to the Business Name. ...
- Maintenance.
Do you have to file a DBA for every county in Texas? ›
Sole proprietors or partnerships: These individuals or partnerships will file DBA paperwork in each county where the business has an office. If the business doesn't have a physical presence in Texas, then the DBA should be filed in each county where it transacts business.
Is a DBA the same as a business license in Texas? ›While not a business license, it's common for Sole Proprietorships and Partnerships operating under a name that is different from the full name of the owner(s) to register for an Assumed Name (also known as a Doing Business As or DBA) with the County Clerk's Office in the county where the business is located.
Is DBA or LLC better? ›Generally, a DBA is less costly to maintain, but an LLC offers better benefits and protection. Expanding and selling a business, as well as generating funding, is also easier with an LLC. Also, a business owner does not receive personal liability protection from a DBA.
What is the difference between a LLC and a DBA? ›A DBA is an assumed (fictitious) name that an existing business has received approval to use when conducting business. An LLC is its own registered business entity. Both options provide a way to operate under a business name other than a company's legal name.
Does a sole proprietor need a DBA in Texas? ›The state of Texas permits a sole proprietorship to lawfully operate its business operations under the owner's legal name without registering a DBA.
Can I use a PO Box for my DBA in Texas? ›An entity's registered office must be a physical address in Texas where the registered agent can be personally served with process during business hours. It cannot solely be the address of a mailbox service or telephone answering service.
What are the limitations of a DBA? ›- It is neither a business structure nor a legal entity. ...
- It does not necessarily give you exclusive rights to the DBA name. ...
- A DBA does not protect your personal assets, so in the event of a lawsuit against your business, your personal bank accounts, car, or home could be at risk.
No, a DBA is not a separate legal entity in Texas. The name simply allows businesses to operate under a different name.
Is getting a DBA Easy? ›Filing a DBA name isn't hard — you just need to work within your state or county's requirements to go about it the right way. It's usually best to get this all done before you operate under your intended “doing business as” name; somewhere between 30 and 60 days before you open your doors.
What is a DBA in Texas? ›A DBA (Doing Business As) is an official filing you make with either the local or statewide government offices for registering the name under which you will be conducting business. In Texas, we generally refer to DBA registration as filing an Assumed Name Certificate.
Who is eligible for DBA? ›
The Eligibility for the DBA program is MBA / PGDM or any other relevant PG degree / diploma in management approved by AICTE / UGC and as accepted by Lincoln University of College Malaysia.
What are examples of DBA? ›A DBA, or “doing business as”, comes into play if, for example, your LLC's legal name is “The John Doe LLC” but you want customers to know you as “Superlative Salon” or, well, anything besides “The John Doe LLC.”
Can two businesses have the same DBA name in Texas? ›No exclusivity to the business name: Unlike a trademark, a DBA does not protect the assumed name that you are operating under. In fact, companies in other counties or states may use the same name.
Can I sell my DBA in Texas? ›A DBA remains valid for 10 years. If the owner sells the business or wants to give the DBA to another entity, Texas law states the owner must file a new assumed name certificate within 60 days. The owner cannot amend a certificate.
Does a DBA use the same tax ID number? ›Do I need a separate EIN for each DBA? No, you will use the same EIN for a business and all its DBAs. Can you get an EIN as a sole proprietor? You can, and many sole proprietors choose to do so for tax benefits and added privacy.
Does a DBA need to be registered with the IRS? ›Even though a company that chooses to operate under a DBA does not need to file for their own EIN, they will have to report their new name to the IRS.
Does a DBA file a tax return? ›A DBA Is Reported on Schedule C
The DBA is reported on your personal 1040 tax return. The business income and expenses will be entered in Schedule C. All profits from the DBA are subject to self-employment tax.
DBA costs vary by state, county, city and business structure, but in general, registering a DBA comes with paperwork and filing fees anywhere from $10 to $100.
Is DBA just as good as LLC? ›Since a DBA is basically a nickname and not a business structure, it does not provide the same legal protections you would receive from an LLC or any other business structure. In addition to sole proprietorships and partnerships, DBAs are also commonly used by franchise business owners.
Is a DBA Better Than LLC? ›Generally, a DBA is less costly to maintain, but an LLC offers better benefits and protection. Expanding and selling a business, as well as generating funding, is also easier with an LLC. Also, a business owner does not receive personal liability protection from a DBA.
What are the disadvantages of a DBA? ›
- It is neither a business structure nor a legal entity. ...
- It does not necessarily give you exclusive rights to the DBA name. ...
- A DBA does not protect your personal assets, so in the event of a lawsuit against your business, your personal bank accounts, car, or home could be at risk.
Sole proprietors or partnerships: These individuals or partnerships will file DBA paperwork in each county where the business has an office. If the business doesn't have a physical presence in Texas, then the DBA should be filed in each county where it transacts business.