You must apply for an assumed name certificate with the Texas Secretary of State if you want to operate a business under an assumed name in Texas. This document, also referred to as a Doing Business As (DBA) certificate, is good for ten years. To continue conducting business under your assumed name after this time, you must renew your certificate. We’ll go over how to renew your assumed name certificate in Texas in this article and address some relevant queries. Renewing Your Texas Assumed Name Certificate
You must submit a renewal application to the Texas Secretary of State in order to renew your assumed name certificate in that state. This application can be submitted in person, via mail, or online using the SOSDirect system. You’ll need to supply your current certificate number, as well as your company’s legal name and address, and the renewal charge is $25.
It’s vital to remember that your assumed name certificate can only be renewed within six months of its expiration date. You will have to submit a new application and pay the initial filing cost once more if you don’t renew your certificate within this window of time. Advantages and disadvantages of a DBA While operating your business under a name different than your legal name can be handy, there are some drawbacks to take into account. The fact that a DBA offers no legal protection for your company name is a significant drawback. This implies that another company may use the same name or one that is similar, which could cause confusion and possibly legal problems.
Bank Account Separate for a DBA
Although it is advised, having a separate bank account for your DBA is not legally needed. Your personal and corporate finances can be kept separate with the aid of a separate bank account, which can simplify bookkeeping and tax reporting. In the event of a lawsuit or other legal difficulty, it can also aid in protecting your private assets. Creating a DBA for a Business Account
Yes, a DBA can be used to open a company account. You will need to give the bank your DBA certificate and any other necessary paperwork in order to do this. Providing documentation of your company’s legal framework, such as an LLC operating agreement or articles of formation, may also be required by the bank.
Small enterprises in Texas are exempt from state registration requirements. The Texas Secretary of State may compel some business entities, such as professional companies and limited liability partnerships, to register. All firms must also get the appropriate licenses and permissions from the state and local governments in the areas where they conduct business.
In Texas, you can easily renew your assumed name certificate online, through the mail, or in person. While operating your business under a DBA can be handy, it’s vital to think about the potential drawbacks and take precautions to protect your personal and commercial assets. Consult a business attorney or other qualified expert if you have any issues about renewing your assumed name certificate or running your company in Texas.