Can two businesses have the same DBA name in Texas?

Two companies in Texas may share the same DBA name, but only if they are not directly competing with one another. DBA, or “doing business as,” is a registered name that companies use when they want to conduct business under a different name than their official business name. However, if two companies in the same field or that offer comparable services or goods share the same DBA name, it may cause customer confusion and result in legal action.

You cannot apply again for an EIN (Employer Identification Number) if you own a business. The Internal Revenue Service (IRS) issues each business an EIN, which is a special nine-digit number used for tax purposes. Once your company has an EIN, you are not permitted to file for another one. To get a new EIN, you will need to modify your business structure, for example, from a sole proprietorship to an LLC with many members.

You must submit the required papers to the Texas Secretary of State in order to convert a single-member LLC to a multi-member LLC. A new EIN will also be required for your new business structure. A limited liability company having multiple owners is known as a multi-member LLC. Although this kind of corporate structure can offer greater management and ownership freedom, it also necessitates more paperwork and regulatory compliance.

An EIN is required for a multi-member LLC to identify itself for tax purposes. Each LLC member must disclose their portion of the income on their individual tax returns, and the LLC is also required to submit an annual tax return to the IRS. For these tax purposes, the LLC is identified by its EIN.

You can think about establishing a parent company that owns a number of subsidiary firms if you want to structure many enterprises under one roof. Several advantages of this structure type include centralized management and shared resources. To prevent client misunderstanding, it is important to make sure that each subsidiary firm works under a different DBA name and in a different industry or offers distinct services or goods.

In Texas, two companies can operate under the same DBA name, but it is not advisable if they are going up against each other directly. You cannot apply for an EIN more than once, however if your company structure changes, you will need to get a new EIN. If you wish to structure many businesses under one roof, you can think about creating a parent company that owns a number of subsidiary companies. A multi-member LLC requires an EIN. To make sure that your company’s structure and compliance satisfy all relevant criteria, it is best to seek legal and tax advice.