Transfer DBA to LLC Texas: Everything You Need to Know
To transfer DBA to LLC Texas will require an authorized party to file a new assumed name certificate with the state of Texas and local offices.3 min read
Updated November 17, 2020:
To transfer DBA to LLC Texas will require an authorized party to file a new assumed name certificate with the state of Texas and local offices within 60 days of the transfer. This will update the business ownership information to the new party.
What Is a DBA?
"Doing Business As" (DBA) informs the public of who the real owner of a business is. The DBA may also be referred to as the Assumed Business Name or Fictitious Business Name. The concept of DBA was created as a form of consumer protection, preventing untrustworthy business owners from operating under a fictitious name. Parties that have filed a DBA will need to publish the name in the classified section of the local newspaper. This step informs the public of exactly who is running a business in their community.
Do You Need a DBA?
Sole proprietors will have to file for a DBA for their business if the company's name is different from the owner's name. For example, EZ Autos would need to file for a DBA for EZ Autos.
Sole proprietorships: Sole proprietors using a combination of their personal name and a description of their service or product will not need to file for a DBA. To clarify, Jim Ryan's Auto Shop may not need a DBA, but Jim's Auto Shop would require a DBA. It's recommended to verify with the local clerk's office to see if a DBA is required for your business.
LLCs and Corporations: LLCs and corporations that have registered their businesses don't need to file for a DBA. If a business is planning on operating under a different name (other than the registered name), then a DBA is required. For example, if Jim Ryan's Auto Shop is incorporated as JR's Auto Shop Inc. and would like to operate under JRAutoShop.com or JR's Auto, then a DBA will be required for both. In other words, a company will need a DBA to conduct business with any kind of alteration to the original company name.
The Importance of a DBA
As a sole proprietor, the easiest and least expensive way to register a business name is by filing for a DBA. An independent business name can be created this way without having to form a corporation or LLC. Also, a DBA is required when opening up a business bank account.
A DBA allows corporations and LLCs to operate numerous businesses without the need to form a separate corporation or LLC for each entity. For example, if a business would like to expand into multiple stores, websites, services, restaurants, etc., they can become incorporated with a generic name and use a DBA for all of the other individual entities. This helps decrease expenses and paperwork when operating a number of business-related projects.
A DBA ensures that corporations and LLCs are legally compliant, and therefore, are able to benefit from specific legal protections. Many legal protections may be impaired if a business is caught operating under a different name and never filed for a DBA. For example, if JR's Auto Shop Inc. signs a legally binding contract under Jim Ryan's Auto Shop (or some variation), the contract will most likely not hold up in court.
Filing a DBA
The requirements, fees, forms, and rules affiliated with filing a DBA will vary by county and state. The U.S. Small Business Administration maintains a chart detailing out the DBA filings by state. A legal document filing service may be able to assist in the process by making sure all state and county requirements are achieved. This should make sure that the business is not operating outside of the law.
How to Transfer a DBA to a New Entity in Texas
The state of Texas allows companies to operate under a DBA or assumed name, as long as the name is uniquely identified and properly registered with the state. DBAs are registered at the county or state level, depending on where the business will be operating and the type of entity that'll be using the name.
By law, a business that is transferring a DBA to another entity will have to file an assumed name certificate with the local and state offices within 60 days of the transfer. Once the assumed name certificate is processed, the business ownership information will be completely updated.
If you need help transferring a DBA to an LLC in Texas, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.