Many business owners in Texas may ponder if they can conduct operations under a name other than their official business name. A DBA, or “doing business as,” is useful in situations like these. A DBA is a made-up name that a company can use to do business while retaining its legal identity.
If you’re wondering if an LLC can use a DBA in Texas, the answer is yes. Actually, using a DBA to do business is extremely usual for LLCs. By doing this, the LLC is able to develop its own brand identity and marketing plan while still enjoying the legal advantages of an LLC.
The LLC must submit a form to the county clerk’s office in the county where the business is located in order to obtain a DBA in Texas. The legal name of the LLC and the preferred DBA must be entered on the form. Depending on the jurisdiction, a DBA can be filed for as little as $50. The LLC may use the name to carry on business and issue contracts after the DBA is approved.
It is crucial to understand that acquiring a DBA does not result in the formation of a new legal company. All obligations and liabilities committed under the DBA name are still the responsibility of the LLC. Additionally, in order to avoid confusion, the LLC must expressly disclose in any contracts that it is operating under the DBA name that it is doing so.
Does a sole proprietor in Texas require a DBA, one can possibly inquire? Yes, it is the answer. A lone owner in Texas must register for a DBA if they are conducting business under a name other than their legal name. Is a DBA required in Texas?
This requirement applies to all sole proprietorships, regardless of the kind of business. The response is no, however it is strongly advised. Employing a DBA enables companies to keep their legal protections while developing a distinct brand identity and marketing plan. Additionally, it might make it simpler for clients to locate and identify the company. How much time does it take to obtain a DBA? Texas’s counties differ in how long it takes to get a DBA. The processing and approval of the DBA typically takes 1-2 weeks. For a price, some counties could provide faster processing.
What are incorporation’s four drawbacks? While incorporating a corporation has many advantages, there are a few drawbacks to take into account. These include the price of incorporation, more administrative and paper work, a loss of business control, and the potential for double taxation for businesses that pay dividends on their profits. Before choosing to incorporate a firm, it’s crucial to consider the pros and cons.