Assumed Name Certificate
Definition and meaning
An Assumed Name Certificate, also known as a fictitious business name or DBA (doing business as), is a legal document that allows a business entity to operate under a name other than its registered legal name. This certificate serves the purpose of ensuring transparency in business operations, allowing consumers to identify the actual owner of the business and the name under which it is operating.
How to complete a form
Completing the Assumed Name Certificate involves several key steps:
- Provide required information: Enter the legal name of the business entity as listed in the formation documents.
- Specify the assumed name: Fill in the name under which the business will operate.
- Include jurisdiction details: State the jurisdiction where the business is incorporated or organized.
- Indicate duration: Mention the duration for which the assumed name will be valid, not exceeding 10 years.
- Select entity type: Circle the type of business entity, such as corporation or limited liability company.
- Registered office details: If applicable, provide the address of the registered office and the name of the registered agent.
- County designation: List the counties where the business will operate under the assumed name.
Who should use this form
The Assumed Name Certificate should be used by individuals or business entities that wish to establish a business identity that differs from their legal name. This includes:
- Corporations intending to operate under a different brand name.
- Limited liability companies (LLCs) seeking to enhance market recognition.
- Partnerships wanting to use a name that reflects their business focus.
- Solo entrepreneurs who want to create a distinct business presence.
Legal use and context
This form is essential in various legal contexts. It ensures that businesses comply with state laws regarding name registrations, protecting both the business and consumers. Filing an Assumed Name Certificate is often a prerequisite for opening bank accounts, signing contracts, and obtaining business licenses under the assumed name.
Key components of the form
The Assumed Name Certificate typically includes several critical components:
- Name of the business entity: The official legal name of the organization.
- Assumed name: The name under which the business will conduct operations.
- Jurisdiction information: Details on where the business is legally registered.
- Duration: The validity period of the assumed name.
- Entity type: The classification of the business entity.
- Address of registered office: The location of the business's registered office.
- County of operation: The specific counties where business activities occur.
Form popularity
FAQ
The proper way to write your Legal name for DBA is to write your doing business as name exactly the way you register it. For example, if John H. Doe is a sole proprietor and he wants to open a barber shop under the name Precision Barber Shop, he can register the name with her State.
Lack of tax benefits: A DBA is not a corporation, so merely filing a DBA that is not part of a corporate umbrella like an LLC will not give you any special tax benefits. If you are only doing business as a DBA, any money your business makes passes through to your individual tax return and is taxed accordingly.
For example, business owner John Smith might file the Doing Business As name "Smith Roofing." Corporations and limited liability companies (LLCs) may register DBA names for specific lines of business. For example, Helen's Food Service Inc. might register the DBA "Helen's Catering."
To start the DBA process, you need to file an Assumed Name Certificate with the state of Texas. This is also called Form 503, and you can fill it out online or manually.
The filing fee to register an Assumed Name (DBA) for sole proprietorships and partnerships in Texas varies by county. Usually, the fee is about $15 per county. Corporations & LLCs will pay $25 to register with the Texas Secretary of State. The registration is valid for 10 years and can be renewed.
Assumed Name Certificates in Texas An assumed business name is a name for your business that is different than its legal registered name. An assumed business name certificate is the document that serves as proof that your company has the legal right to use a specific name.
To do business under a DBA, you must complete and file the appropriate DBA forms and pay a filing fee, after which point you receive a DBA certificate. Depending on the state you may be able to file with a local or county clerk's office, with a state agency, or both.
The proper way to write your Legal name for DBA is to write your doing business as name exactly the way you register it. For example, if John H. Doe is a sole proprietor and he wants to open a barber shop under the name Precision Barber Shop, he can register the name with her State.
Obtain the appropriate forms. First, acquire the appropriate forms for registering a DBA in your jurisdiction. Complete the forms. Provide all required information on the DBA forms. Provide your business entity type. Provide any other information. Sign the forms. Pay the fee and file the forms.
