Choosing a name is one of the most crucial tasks in launching a small business. What if, however, you are not yet prepared to register your business? Is it still possible to reserve the desired name? If so, how long, exactly?
In Texas, you have up to 120 days to reserve a company name. This allows you time to get your company ready for registration without having to worry that someone else will already be using the name you choose. You must submit an Application for Reservation of an Entity Name to the Texas Secretary of State in order to reserve a name. There is a $40 cost for this, which can be paid online or by mail.
Once your name is reserved, nobody else may use it for the following 120 days. It’s crucial to understand that reserving a name does not grant you the sole right to use it. Even if another company has already registered a name that sounds similar, they might still be able to use it.
What is the procedure for Texas small business name registration? Selecting a name that is not being used by another company in the state comes first. The Texas Secretary of State’s internet database allows you to search for already-used company names. Once you’ve settled on a distinctive name, you must submit a Certificate of Formation to the Secretary of State along with the appropriate filing fee.
What happens, though, if you choose not to utilize the business name you registered? Can you still maintain the registered name? The answer is yes, however it’s crucial to keep in mind that even if your firm is inactive, you can still be obliged to submit annual reports and pay franchise taxes.
Whether an LLC or sole proprietorship is the better choice for your small business’s legal structure may be a question on your mind. The size of your firm, the amount of personal liability you are comfortable with, and your tax situation are just a few of the variables that will determine the response. In general, an LLC offers more security for personal assets and may receive better tax treatment, but it also necessitates additional paperwork and maintenance costs.
Overall, reserving a business name in Texas can be a simple procedure, but it’s crucial to do your homework and ensure that the name you select is both distinctive and legitimate. To be sure you’re making the greatest choices for your particular scenario when it comes to registering your business and selecting a legal structure, it’s always a good idea to speak with an experienced attorney or accountant.
Depending on the state or territory where you are registering your firm, there may be a different time limit for reserving a business name. While receiving confirmation of the reserved name may take several days or even weeks in certain states, in others, the name reservation process can be accomplished online and only take a few minutes. For precise information on the anticipated timeframe for reserving a business name, it is recommended to contact the business registration office of your state or local government.
There are several things to think about while naming your small business. You should pick a name that is distinctive, memorable, and simple to say. It’s crucial to confirm that no other company in your state or country has already registered the name you intend to use. Through the website for business registration in your nation or state, you can perform an online search for business names. To make sure that your company name is legally protected, you might also want to think about engaging a trademark attorney to carry out a more complete search and help with the registration procedure. Additionally, it’s a good idea to pick a name that appeals to your target market and effectively describes the goods or services your firm delivers.