What Is a DBA and How Do I File for One in Texas?
When starting a business, especially a sole proprietorship or partnership, you may find that the name under which you want to operate your business isn’t your legal name. Or, perhaps you want to operate your business under a name that's more descriptive or appealing than your given name or the name of your partnership.
In such cases, you may need to register a DBA (Doing Business As) name. Attorney Lance K. Bruun explores what a DBA is, why it's important, and how to file for one in Sinton, Texas, or the surrounding areas.
What Is a DBA (Doing Business As)?
A DBA (also referred to as a "fictitious business name," "trade name," or "assumed name") is a name under which a business operates that's different from the legal name of the business owner.
For example, if you're a sole proprietor named John Smith, but you want to operate your business under the name "Smith's Lawn Care," you would file for a DBA name.
The DBA name allows you to do business under a name that's more aligned with your brand, services, or products without having to create a separate legal entity (like an LLC or corporation).
In other words, a DBA is a way for business owners to brand their business and operate under a name different from their personal name or the name of their business entity, such as a limited liability company (LLC) or corporation.
It's particularly relevant to sole proprietors and general partnerships, though LLCs and corporations can also use DBAs if they want to do business under a different name.
Why Use a DBA?
There are several reasons a business owner might choose to file for a DBA:
Branding and marketing: A DBA name can help you create a brand identity that resonates with your target audience. For instance, a bakery owned by a person named Jane Doe may want to operate under the name "Sweet Treats Bakery" to make it clear to customers what the business is about.
Flexibility: With a DBA, you can have multiple businesses operating under different names without needing to create separate legal entities for each one. For example, a business owner with an LLC may want to open several distinct businesses with different names under the same LLC.
Legal protection: Filing for a DBA helps make sure that your business name is legally registered and protects you from others using the same or a confusingly similar name in the same geographic area.
Banking requirements: Many banks require you to have a DBA to open a business bank account under your trade name. This allows you to accept payments and manage funds under a name other than your personal name.
Contracting and invoicing: If you're a freelancer or small business owner, having a DBA name allows you to issue invoices and sign contracts under your trade name, which can make your business look more professional to clients and customers.
When Do You Need a DBA?
In Texas, you're required to file for a DBA if your business is operating under a name that's not your legal business name. For example:
A sole proprietorship or general partnership operating under a name that doesn't include the legal names of the business owners must file a DBA.
Corporations and LLCs may also file for a DBA if they intend to operate under a name that's different from their registered business name.
However, if you're operating a business under your legal name (for example, “John Smith Consulting”), or if your business name is a registered trademark (which is separate from a DBA), then you may not need to file for a DBA.
Is a DBA the Same as Incorporation?
No, a DBA isn't the same as incorporating or forming an LLC. Incorporating or forming an LLC creates a separate legal entity for your business, while a DBA simply allows you to do business under a different name.
For instance, if you form an LLC called "Smith Enterprises LLC," but you want to do business under the name "Smith's Lawn Care," you would need to file a DBA. The LLC itself is the legal entity, while the DBA is the trade name you're using to operate your business.
How to File for a DBA in Texas
1. Choose Your DBA Name
Before you begin the process of filing, you'll need to decide on your trade name. It’s essential that your chosen name is unique and not confusingly similar to another business operating in Texas. If you pick a name that’s already in use or too similar to an existing name, your application may be denied.
Texas law requires that your DBA name not include certain words, such as "bank," "trust," or "insurance," unless you have the proper licensing or approval from relevant authorities.
2. Search for Your Name's Availability
Once you've chosen your DBA name, the next step is to check if it’s available. In Texas, this can be done using the Texas Secretary of State’s online name search tool.
The name search tool helps you determine if your desired DBA name is already in use by another business. If the name is already taken, you may need to adjust your name until you find an available one.
3. Register Your DBA With the County Clerk
In Texas, DBAs are filed with the County Clerk's Office in the county where your business is located. Texas doesn't have a centralized state-level registration system for DBAs. Each county handles DBA filings, which means you’ll need to check with the local County Clerk in the county where your business is physically located.
4. Complete the DBA Application
You'll need to complete a DBA (Assumed Name) Registration Form, which asks for basic details about your business, such as the name you wish to register, the address of the business, and the names of the business owners.
5. Pay the Filing Fee
The cost of filing a DBA varies by county but generally ranges from $10 to $30. Some counties may accept payments by check, cash, or credit card.
6. Submit the Application
Once the form is completed and payment is made, you can submit the DBA application. If done in person, you'll typically receive confirmation immediately. If done online or by mail, the processing time can vary, but you should expect to wait at least a few days to a few weeks for confirmation.
7. File With the Secretary of State (Optional)
While the DBA registration is done at the county level, if your business operates across multiple counties in Texas, you may also choose to file your DBA with the Texas Secretary of State. Filing with the Secretary of State isn't mandatory, but it can help protect your DBA name statewide.
If you decide to file with the state, you’ll need to use the Assumed Name Registration (Form 503) and submit it online through the Texas Secretary of State's website. The filing fee for this is $25.
8. Renew Your DBA
In Texas, DBAs must be renewed every 10 years. After the initial filing, you're required to submit a renewal form to the county or state, depending on where your DBA was originally filed. Be mindful of the renewal deadlines to avoid losing your DBA registration.
9. Update Your Other Business Documents
Once you’ve successfully filed your DBA, make sure to update any business-related documents to reflect your new trade name. This includes:
Business bank accounts
Contracts
Invoices
Marketing materials
A DBA (Doing Business As) name is an essential tool for business owners who wish to operate under a name different from their legal name. It's particularly important for sole proprietors, partnerships, LLCs, and corporations that want to use a trade name for branding, marketing, or legal purposes.
In Texas, filing for a DBA involves selecting a unique and available name, registering with the county clerk’s office (or the Texas Secretary of State for broader coverage), and following up with periodic renewals.
By understanding what a DBA is, why it's needed, and how to file for one, you can establish a professional business identity and comply with state regulations while setting yourself up for business success. Whether you're starting a small local business or expanding an existing one, a DBA can provide the flexibility and credibility you need to grow your brand in Texas.
Contact a Business Law Attorney Today
If you're looking to file for a DBA in Texas, look no further than the Law Offices of Lance K. Bruun. He serves clients throughout Sinton, Rockport, Alice, Kingsville, and Corpus Christi, Texas. Contact our experienced business law attorney to schedule a consultation today.