It is important to note that state statutes regulate the use of assumed names, and failure to register may lead to unwanted consequences. An assumed business name, also called a DBA (doing business as) name, is used by an entity that is conducting business under a name that is not its legal name. Protect yourself, your property, and your money by getting liability protection with an LLC. A Sole Proprietorship may use an assumed name rather than the last name of the business owner.
Understanding what an assumed name is and how it can benefit your business can help you decide if filing for one is the right step for you. If your business operates as a corporation, limited liability company (LLC), or limited partnership (LP), your business’s legal name is the one used on the formation document. Under state law, three classes of businesses are required to register assumed names with the local county clerk’s office.
Once all necessary information is compiled and the application form is completed, the next step is submitting the Certificate of Assumed Name. The governmental office responsible for these filings can vary, but it is commonly the Secretary of State’s office or the County Clerk’s office. Submission methods often include online portals, mail, or in-person delivery.
- Contact us to help you determine if your desired name is available and to prepare and file the registration paperwork in your state.
- An assumed name allows a business to operate under a name different from its legally registered name.
- After initial filing, ongoing responsibilities include periodic renewal, which jurisdictions typically require every one to ten years.
What states call the filing varies — e.g., assumed name certificate, DBA filing, fictitious name registration, trade name registration, or some version of those names. Using an assumed name without proper registration can result in penalties, fines, or legal disputes, especially if another business claims rights to the name. Businesses may also face difficulties enforcing contracts or pursuing legal action if the name isn’t properly registered. Failure to comply with state or local requirements can lead to loss of credibility with vendors, clients, and banks. Proper registration protects the business’s legal standing and ensures compliance, reducing the risk of litigation or operational disruptions.
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This transparency helps prevent fraudulent activities and builds trust between businesses and their clientele. Additionally, an Assumed Name Certificate can be crucial in legal proceedings, establishing a clear link between the business name and its owner. The Clerk’s office registers business names known as “assumed names” (or DBA) for new businesses in accordance with Illinois law. This is required so that any person or entity that may need to sue the business knows who to sue.
Why Hire Us to File Your Texas Assumed Name Certificate?
- You can find out if another business is using the name you want by searching state or county records.
- It is the responsibility of the applicant to search the assumed name records in the county in which business is to be conducted to ensure no other business has the same name.
- This document serves as your official record that the business name has been registered and should be kept with your business records.
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- For example, a business called “John Jones, P.C.” (i.e. owner’s full name and title) does not have to file an assumed name, but “Jones Wrecking” does.
In a number of states, you are also required to publish an assumed name notice in a local newspaper. If any business information changes, such as the business address, the assumed name itself, or the ownership structure, an amendment to the certificate is typically required. If a business ceases operations or no longer uses the assumed name, it is important to file a cancellation or withdrawal of the certificate to remove it from public record. Keeping this information current is essential for legal compliance and transparency. You’ll need to file with the county clerk’s office in the county where your principal office is located or where you conduct business (if you don’t have an office). Most counties will have an assumed name certificate that you can fill out and submit to the county clerk’s office.
The first step in obtaining an Assumed Name Certificate is to contact your local county clerk’s office or the appropriate state agency. This office handles the registration of business names and can provide the specific forms and guidance needed for your application. It’s important to gather all necessary business information and ensure that your desired business name is not already in use.
When should you use a fictitious name or DBA?
Filing for an assumed name may seem straightforward, but errors can lead to delays or compliance issues. One common mistake is failing to check name availability, which can result in rejection if the name is already in use. Businesses sometimes omit required renewals, causing their assumed name certificate registration to lapse. Providing incomplete information on the application or failing to publish a notice in jurisdictions that require public announcements can also create legal problems.
Any business that uses an assumed name should take steps to comply with the assumed name statutes in the state(s) in which it does business. Failing to do so can expose both the business and owners to unpleasant consequences. Businesses operating without a registered assumed name may face reputational damage. Customers and clients may perceive the lack of transparency as a red flag, leading to a loss of trust and business opportunities. Competitors may exploit this non-compliance to challenge the legitimacy of the business, affecting its market position.
When planning to use an assumed business name, it’s advisable to start the registration process as early as possible. This allows you to secure your preferred name quickly and helps avoid delays in launching or rebranding your business operations. Early registration ensures that all legal and promotional activities can proceed without interruption, under the name that best fits your business identity.
If there are changes to the business name, owner information, or address, an amendment may be necessary. Some states require a new certificate to be filed if material changes occur, rather than allowing direct amendments. If a business ceases operations or no longer uses the assumed name, a statement of abandonment or cancellation should be filed to formally withdraw the registration.