How to file a DBA in Texas - Chamber Of Commerce (2024)

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The acronym DBA stands for ‘doing business as.’ A DBA is a registered name that a company or individual uses to do business under a name that is not theirlegal name.

The legal name of a company is different depending on the structure. For a limited liability company (LLC), it defaults to the company’s name. For sole proprietors, the legal name is the name of the individual who owns the company.

For instance, if you open a business, thelegal namewill be your name (e.g., Becky Jones). Becky Jones wants to open a spa and doesn’t want the name of the business to be Becky Jones. So, she files a DBA to change the name of her business to Becky’s Bubbles. Becky’s Bubbles then becomes the name of the business, but nothing else about Becky’s Bubbles changes. The DBA just gives Becky Jones the freedom to operate under her assumedbusiness name.

DBA vs. assumed business name

InTexas, a DBA is most commonly referred to as an assumedbusiness name. It is thelegal nameunder which your company does business and is required by the state.

A DBA and an assumedbusiness nameare precisely the same things.

DBA vs. business name

• An assumedbusiness name, or DBA, is how companies operate under a name that is not theirlegal name.
• Thelegal nameis the name of the business.
• Companies in all industries can register a DBA name. That includes sole proprietorships, LLCs, corporations, franchises, and non-profits.
• The only difference between aDBA nameand abusiness nameis that a DBA is just an alias. It has to be associated with a legalbusiness entity.

How to set up a DBA in Texas a sole proprietorship or General Partnership

Step 1 – Texas assumed name search

In Texas, registering an assumed business name does not prevent other people or businesses from registering the same DBA name. However, it does act as a public record, and notice that you are using the assumed business name.

When registering a DBA in Texas, the first thing you want to do is visit theTexasComptroller of Public Accountsand search for theDBA nameyou wish to use. Even though multiple businesses can carry the same assumedbusiness nameinTexas, you will still want to find a unique one.

Step 2 – File the DBA in Texas with the County Clerk

Texaslaw requires allsole proprietorsand partnerships to file an Assumed Name Registration with thecounty clerk’s officeyou wish to operate within to operate under a DBA.

TheTexasSecretary of Statewebsite gives you thecontact informationfor each county.

Example –Harris County

Search their assumed name database if you plan to operate a business using aDBA nameinHarris County. The application differs depending on how manybusiness ownersthere are.

Form 02-07– 1-3 Owners
Form 02-07A– 4-13 Owners
Form 02-07B– 14 or More Owners

The next step is to complete the Assumed Name Registration and file it with theHarris CountyClerk. You can submit it by mail or in person.Harris Countyhas ten locations where you can drop off the application.

Mailing address:

Harris County Clerk

P.O. Box 1525

Houston, TX 77251-1525

Step 4 – Pay Texas filing fees

Thepriceof a DBA inTexasvaries from county to county. The average cost for a DBA for asole proprietoris around $15. and $.50 for any additional owner listed.

How to file a Texas business DBA for an LLC or corporation

LLCs and corporations are required to file a DBA inTexas. The process for filing is different and applies to the following:

• For-profit Corporations
• Non-profit Corporations
• Professional Corporations
• Professional Associations
• Limited Partnerships
• Limited Liability Partnerships
• Limited Liability Companies
• AllForeign Filing Entities

Step 1 Texas assumed name check

For LLCs and corporations, the first thing you want to do is to visit theTexasComptroller of Public Accountsand search for theDBA nameyou wish to use.

Step 2 – File a Texas assumed name certificate

If your business is incorporated and inTexas, you are required to set up a DBA with theTexasDepartment of State.

The Texas Assumed Name Certificate form will ask for your new DBA name and information about your business. Texas requires that you file the form in duplicate.

You must file theAssumed Name Certificateby mail, fax, or in person.

Office address:

James Earl Rudder Office Building

1019 Brazos

Austin,Texas78701

Mailing address:

P.O. Box 13697
Austin,Texas78711-3697

Fax:

(512) 463-5709

When paying by fax and acredit card, you must fill outForm 807with yourcredit cardinformation.

Step 3 – Pay Texas filing fees

The cost for an LLC filing a DBA is $25. You can pay by cash,money order, orcredit card.

Notarization

Texasrequires that anotaryof the public notarize the Assumed Name Registration.

Texas DBA name restrictions

InTexas, an assumedbusiness namecan’t contain any of the following:

• Words that people could confuse your business with a governmental agency (FBI, Treasury, State Department)
• Words that insinuate or imply that your company is organized for unlawful reasons.
• The terms lotto and lottery are prohibited.
• Words that insinuate or imply that a business was created by or for the benefit of armed forces veterans or their families. The specific terms that are prohibited include veteran, legion, foreign, Spanish, disabled, war, and world war.
• Restricted words such as bank, attorney, or university will require additional forms and a licensed person in those areas to be an owner.

Forms needed to file a DBA in Texas

• TexasComptroller Taxable Entity Search
• TexasSecretary of State
• TexasCounty Clerks Database
• Form 02-07 Assumed Name Registration for 1-2 Owners
• Form 02-07A Assumed Name Registration for 4-13 Owners
• Form 02-07BAssumed Name Registration for 14 or More Owners
• Assumed Name CertificateForm
• Form 807forCredit CardPayments
• Form 504 – Abandonment ofAssumed Name Certificate

Texas DBA tax considerations

InTexas, DBAs only change the name of a business. It has zero effect on the status of abusiness entityfor tax purposes.

How much does a DBA filing cost in Texas?

Thefiling feesinTexasdepend on the county a business it is doing business within. The average cost for asole proprietorshipis $15 for the first owner and $.50 for each additional owner.

Texasdoes offer expedited services for an additional $25.

You can register a DBA inTexasfor 1 to 10 years. You must renew it after the expiration date for the samepriceas the original filing.

For LLCs and corporations, thefiling feeinTexasis $25.

If you wish to withdraw your DBA inTexas, you must fileForm 504 – Abandonment ofAssumed Name Certificateto theTexasSecretary of State. Thefiling feefor the form is $10.

You will have additional fees for the required notarization, and the cost depends on what thenotarypublic charges.

Who needs a DBA?

All corporations,limited liability companies(LLCs), limited partnerships, andlimited liability partnershipsmust file a DBA inTexas.

Sole proprietorsare not required to have a DBA inTexas. However, it is still best business practice to file a DBA.

• New businesses.Texasdoes not require thatnew businessesfile a DBA. But, it is still the best way to operate a business under a name that is not thelegal name. When anew businessregisters an assumedbusiness nameinTexas, it doesn’t prevent others from registering that same name. It does act as a private record and notice that you’re using the name, too.
• Sole proprietors. A business and its owner are the same entity. Therefore, they share a name unless you file a DBA.
• LLCs.InTexas, a DBA is a requirement for all LLCs. Without a DBA, everynew businessan LLC purchases and manages would do so under the official andlegal name. Also, registering an assumedbusiness nameallows an LLC to expand and operate part of their company outside of theirlegal name.
• Corporations. Regularly, corporations own and operate businesses in various industries.Texaslaw requires that all corporations file a DBA. A corporation must file a DBA to do business using adifferent namefrom the corporation’slegal name.
• Franchises. Most franchises utilize DBAs. For example, if you buy an Applebee franchise. Applebee is an LLC, and a new franchise would be listed as “456 Business LLC”. To change the franchise from its listing to simply Applebee’s, you will need to file a DBA to let Texax know that you’re ‘doing business as’ the franchise you’re now an owner of.

DBAs allowbusiness ownersthe creative freedom to name their businesses. DBA also givessmall businessesthe benefit of avoiding the costly and complex process of forming and registering an LLC just to make aname change.

Why do you need a DBA?

• Asmallbusinesscan keep things simple with a DBA.DBAs only change the name of a company. However, they accomplish other things, too. Filing a DBA is an easy and cost-effective way forsole proprietorsto use an assumedbusiness namewithout the complication offorming an LLCor corporation.
• DBAs benefit LLCs and corporations.Texasrequires that all LLCs file a DBA. Also, alimited liability companywould have to form separate DBAs for every business it buys without a DBA. For example, Joe’s Produce LLC wants to open Leafy Love restaurant. The LLC would file a DBA to change the name, but Leafy would remain owned and operating by Joe’s Produce LLC.
• DBAs protect the privacy of their owners.DBAs givebusiness ownersthe freedom to use an assumedbusiness nameon public-facing material rather than using their personallegal name.
• DBAs make business banking safer and easier.It is always safest to open a bank account for anew businessseparate from your personal business account. It is recommended to protect yourpersonal assetsand credit scores in case your business fails. Most banks requirenew businessesto file a DBA before opening a bank account in thebusiness name.
• DBAs make branding and marketing easier.Branding is how your business stands out against all the rest. Thebusiness namelisted on your business cards and signage lets potential clients and customers know what you’re selling. For example, had Becky Jones not filed a DBA, no one would know her business was a spa.

FAQs

Does Texas require a DBA?

Texasstate law does not requiresole proprietorsto file a DBA. However, any incorporated company must file a DBA if they wish to operate a business that is not their legal company name.

Do I need an EIN for a DBA in Texas?

You don’t have to have a separate EIN. DBAs are notbusiness entities.

How long does it take to process a DBA inTexas?

TheSecretary of Stateprocesses 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 do I choose aDBA nameinTexas?

An assumedbusiness namethat you choose is an essential part of branding, and it costs almost nothing.

You should pick a unique and distinctive name that represents you and your business while alerting customers of who you are with just a glance.

Texasdoes not require that yourDBA namebe distinct, and more than one person can share the same name. However, the more unique the name, the better.

It is best practice to search for an available domain (URL) name to make marketing and branding easier.