Business name registry Texas

Business Name Registry Texas

What should you know about a business name registry Texas? There is a lot you need to know about business name registration in Texas, especially if you intend to set up a business in this great state of Texas.

Texas is a US state located in the South Central area. It is the second-largest U.S. state in both land and population, behind Alaska, with 268,596 square miles (695,662 km2) and more than 29.1 million citizens in 2020. (after California).

The retail, wholesale, banking and insurance, and building sectors are all thriving because of Texas’s prosperity.

Business name registry Texas

As a business hub, Texas is a great place to start up a business no matter how small it is. The good part is that Texas boasts of a low taxation policy. Thus, you don’t have to worry about paying a lump sum as tax.

If you already have a blueprint of how you want your business to look, the next thing you should think about is getting and registering your business name. If you haven’t done so, you don’t have to worry.

In the segments that follow, I have covered everything you need to know about searching for a unique business name, how to register it, and the rules and regulations that govern a business name registry in Texas.

Getting Started With Business Name Registry Texas: Everything You Need to Know

The process of registering a company name in the state of Texas is straightforward. Choosing the right business structure and making sure your proposed company name is available in Texas are the last steps before filing the appropriate papers with the secretary of state.

You may register with the state on your own, but numerous websites also provide registration and other services for new businesses.

We are here to assist you with your Texas business name search and Texas limited liability company (LLC) name registration needs at the Texas Secretary of State (SOS).

Here you’ll find comprehensive guides regarding company names, assumed names, and trademarks in addition to information on how to do a Texas LLC search. But first, let’s fill you in on the General Guidelines to Follow When Naming an LLC.

General Guidelines to Follow When Naming an LLC

Generally speaking, these regulations apply to all limited liability companies, regardless of the state in which they were first founded.

Tip 1: Words of Specific Meaning Must Be Included in Your LLC Name.

One the “Limited Liability Company,” “L.L.C.,” or “LLC” must appear at the end of the name of every LLC.

Tip 2. Your Limited Liability Company’s name Must be Distinct from all other Companies in your Field.

It isn’t enough for your LLC name to be original. It also can’t be too close to the name of an existing company or limited liability company in the state. In addition, none of the following elements may be used in your company name to set it apart from others:

Incorporated, Company, Incorporation, Limited, Corporation, Corp., Co., Inc., Ltd., LLC, etc. are all examples of appropriate suffixes.

Articles that specify nouns, such as “an,” “a,” and “the” Conjunctions like “and” and “&”. Types of nouns that may be either single, plural, or possessive, symbols, abbreviations, punctuation, fonts, typefaces, etc.

Tip 3. The Name of Your LLC Must Be Original.

No other company or limited liability company in the state may use the name you choose. This is why, before starting your formation papers, you must do a company search with the Texas Secretary of State.

How to Register your Business Name in Texas: Complete Guide

The following are guidelines for choosing a name for your business and also getting it registered in Texas:

Step 1: Research a Business Name

To begin, choose a name for your company. You could believe your name is adorable and inventive, but unless you do a name search, you won’t know for sure. Doing a texas business registry name search is required before you can proceed. SOS Direct is the place to look; there’s a one-dollar registration cost, but the system walks you through the steps.

Texas law mandates that companies use distinct names to avoid customer confusion and legal ramifications that might result from using similar names. Imagine local IT services and Compurepairairs shops formally registering as “Dallas Computer Repairs.” Because of the potential for confusion, the state verifies company names against a database of firms already registered to do business there.

Step 2: Choose a Legal Structure (Business Entity) for Your Business

To assist you in selecting the appropriate business entity for your venture, the Texas Secretary of State website has a useful tool. One may choose to operate as a “doing business as” (DBA) single proprietor, a limited liability partnership (LLP), or a corporation. Investigate the available materials and verify the costs of establishing each of these organizations.

Establishing one over another based on fees alone is a bad idea; instead, you should weigh your alternatives and talk to a CPA or lawyer about any possible pitfalls. Corporations pay $300, while LLP partners pay $200. The fee to file a DBA is $25. Before deciding on a business structure, it’s important to weigh the risks, tax consequences, and benefits of each option.

Step 3: Get Your Name Registered with the Texas Secretary Of State

Following exhaustive research on a suitable name and establishment of a corporation, you are now prepared to submit your paperwork to the state. The SOS Direct web portal is available around the clock and is maintained by the Texas secretary of state.

You may contact us online, or visit our Austin office. You must include the entity type, the entire legal entity name, the relevant location, and the owner information in either case.

Pay all you owe using the online gateway, which may charge you a fee to make your credit card payment. Draft the company’s operating agreement and the minutes of the first meeting.

While they are not submitted to the secretary of state, they should be kept in the same binder as your company’s official registration documents.

It’s also possible to use a paid online registration service. The service aids in conducting the name search and drafting the original articles of incorporation or limited liability partnership, together with any operational agreements and inaugural minutes, for your convenience.

The “notice” requirements of launching a product or service must be met if you are not employing a third-party provider.

Step 4: Trademarks and Service Marks

It’s important to be sure that the name you choose for your Texas LLC doesn’t conflict with anybody else’s trademark or service mark. Conducting a trademark search is the most foolproof method for avoiding trademark infringement. You may register the trademark yourself if no one else is using it.

What advantages of a Limited Liability Company in Texas?

Some benefits come with registering your business as an LLC in Texas, these benefits are:

1. Protect Your Business Name

If you form an LLC in Texas, the state will prevent any other firm from using the name you’ve chosen. Safeguarding an LLC’s name is an investment in the company’s good name and brand recognition.

2. Tax Benefits

There may be tax advantages for the company if it forms an LLC in Texas. When calculating net income, a Texas LLC may subtract operational and business expenditures from the top line. Depreciation of corporate assets is also a tax deduction for Texas LLCs.

3. Protection of Personal Assets

A limited liability corporation (LLC) is a corporate structure that is both compliant with and protective of Texas law. In the event of a lawsuit, the creditor or individual pressing charges against a Texas LLC may only go for the LLC’s assets, not the members’ individual belongings.

4. Help from the Secretary of State

In Texas, a firm must be registered with the state before it may operate as a limited liability corporation. The Texas Business Corporation Act (TBCA) and the Texas Miscellaneous Corporation Laws Act provide legal protection for limited liability companies in Texas (TMCLA).

5. Flexible Profit Choices

Business entities operating in Texas may choose to organize as an LLC if they so want, even though the LLC business form is determined by federal law.

With the new legislation in place, LLCs in Texas have the choice of filing their federal taxes as either a corporation or a partnership. Even though there is no general sales tax in Texas, companies must still register for the Texas Franchise Tax.

6. Zero Record-Keeping Requirements

A Texas LLC is not subject to the same recordkeeping requirements that apply to corporations, such as keeping minutes of meetings or keeping extensive records.

Bottom Line

Registering a business name in Texas is super easy, and the benefits of having your business name registered with the SOS in Texas are enormous.

If you are a prospective business owner who is about to start up a business, the guidelines presented above will help you in your journey to getting your business and having it registered in Texas State.

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Good luck in your business endeavor!

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