You must submit the required paperwork to the county clerk in the county where your business is located in Texas in order to register for a DBA. A Certificate of Assumed Name and an Application for Registration of Assumed Name are normally needed for a DBA registration, however specific forms may differ from county to county. After completing these documents, you must deliver them to the county clerk along with the required filing fee.
It typically takes a few days for the county clerk to finalize your registration and issue your DBA certificate after you have submitted the necessary paperwork and fees. You can start using your new business name as soon as you get your DBA certificate. What Justifies the Need for a DBA in Texas?
If you conduct business in Texas under a name other than your legal name, a DBA is necessary. For instance, if your business is known as “John’s Plumbing,” but your legal name is John Smith, you would need to apply for a DBA. By applying for a DBA, you can legally utilize your company name and carry out business under it.
Which is preferable, an LLC or a sole proprietorship? Whether you should set up your company as an LLC or a single proprietorship depends on your particular circumstances. The simplest and most typical sort of business structure is a sole proprietorship, in which the owner is in charge of every aspect of the company. A Limited Liability Company (LLC) provides greater asset protection and restricts the owner’s personal liability for company debts and legal actions.
A sole proprietorship might be a smart choice if you are a small business owner who is concerned about minimal liability. An LLC, however, can be a preferable option if you wish to provide your private assets additional security.
Yes, a DBA may have a minimum of two owners. You must list each owner of the company on the registration documents when applying for a DBA. The documents must be signed by each owner, who must also pay the required filing fee. It is significant to remember that a DBA’s owners are individually accountable for all facets of the company and its debts. Does It Matter What My LLC Is Called?
Yes, it’s crucial to pick a name for your LLC that’s original and hasn’t been taken by another company operating in Texas. Additionally, the name of your LLC should appropriately describe the nature of your company. When creating an LLC, the Texas Secretary of State’s office has rules that include avoiding words and phrases like “bank” and “insurance,” which might call for further licensing or regulation. Before settling on a name for your LLC, it is generally a good idea to carry out a comprehensive search of already-used company names.
With a DBA (Doing Business As), you can deduct expenses in Texas. Since a DBA is not a distinct legal organization, any costs incurred while conducting business under the DBA may be deducted from your personal income tax as business expenditures. To make sure you can support the costs in the event of an IRS audit, it is crucial to keep thorough records of all costs associated with the DBA.