You must first inform the IRS of the name change in order to modify your business’s name on your EIN. This can be accomplished by submitting Form SS-4, which is the EIN application. You can note that you are changing the name of your company on the form, along with the new name. The form can be delivered by mail, fax, or online submission.
You could occasionally also need to change your company name with state and municipal authorities. The particular standards in your area will determine this, so it’s crucial to do your homework and confirm that you are doing all the appropriate precautions.
Whether you should create an LLC or DBA truly depends on the needs and objectives of your particular organization. It’s easy to run your business under a different name with a DBA (Doing Business As), but it doesn’t provide the same level of legal protection as an LLC (Limited Liability Company). An LLC involves more paperwork and costs to establish and manage, but it can assist protect your personal assets in the case of a lawsuit or bankruptcy.
LLCs in Texas must submit an annual report and pay a fee to keep their status. This is due on the anniversary of the date the LLC was established. Penalties for late filing of the annual report include the involuntary dissolution of the LLC.
In Texas, an LLC can be dissolved voluntarily by the owners or forcibly by the state if certain conditions aren’t met. However, an LLC does not expire in Texas. To preserve your LLC registration and prevent any issues, it’s critical to pay all required filing costs on time.
Finally, there are numerous ways to pay yourself from your LLC. If you are a member or owner of the company and an employee as well, you may take a salary or distributions. The ideal approach to pay yourself is to seek the advice of a tax expert, who can also ensure that all tax laws and regulations are followed.
In conclusion, it is possible to change your business name on your EIN, but it necessitates some paperwork and meticulous attention to detail. Your particular needs and objectives will determine whether you choose to operate as an LLC or DBA, but it’s crucial to comprehend the financial and legal ramifications of each choice. And if you do decide to create an LLC in Texas, be sure to keep up with your annual filing obligations to retain your status and avert any potential problems in the future.