There are a few procedures you must follow if you are the owner of a DBA (Doing Business As) in Texas and you need to transfer ownership to another party. Although this procedure can be a little complex, you can assure a smooth transfer with the correct knowledge. We’ll walk you through the procedures in this post for transferring a DBA’s ownership in Texas.
You must confirm that the recipient is qualified in Texas before you may transfer ownership of a DBA to them. The transferee must be qualified to own a Texas business, which requires that they be a citizen of the United States or a lawful resident alien, according to the Texas Secretary of State. Furthermore, they cannot have a criminal record that includes convictions for felonies or crimes with moral turpitude.
Phase 2: Inform the Secretary of State You must inform the Texas Secretary of State of the transfer after making sure the transferee is qualified. The Secretary of State’s office will accept a statement of transfer in order to do this. The following details should be included in this assertion:
– The name of the company
– The name and address of the previous owner
– The name and address of the new owner
– The date of the transfer
– The cause for the transfer
Update Your Records in Step 3 You must update your records with any other organizations you are registered with after notifying the Secretary of State. This includes any municipal taxation authority, the Texas Workforce Commission, and the Texas Comptroller of Public Accounts. You must remove your own information from your records and replace it with that of the new owner. Renewal of Your Company Name in Texas
Every ten years, DBA owners in Texas must renew their company name. The Texas Secretary of State’s website allows you to renew your company name online. In Texas, the cost to renew your company name is $25.
The price to launch a sole proprietorship in Texas varies depending on a number of variables, including the kind of business you’re launching and if you require any particular licenses or permits. However, Texas charges a $25 filing fee to register a sole proprietorship.
Self-employed people in Texas who desire to conduct business under a different name than their own frequently use a DBA. A DBA does not, however, imply that a firm is independently employed. The owner’s circumstances determine the DBA’s business structure and tax status.
You may refer to your company as a sole proprietorship, of course. You must state that you are a sole proprietorship and submit your business name when you register your company with the Texas Secretary of State. You should be aware that a DBA is not a legal entity and that you will still be held personally responsible for any debts or legal problems that develop.
In conclusion, transferring ownership of a DBA in Texas can be simple if you take the right precautions. Don’t forget to confirm your eligibility, inform the Secretary of State, and update your records with other organizations. Additionally, updating your company name in Texas is a quick and inexpensive online process that costs $25. With a $25 filing cost, starting a sole proprietorship in Texas is likewise reasonably priced. Finally, self-employed people in Texas frequently utilize a DBA, and you can give your company the name of a sole proprietorship.