That depends. Filing a name registration does not give a company the authority to do business in Texas. A valid name registration prevents another institution from filing under a legal or fictitious name that cannot be distinguished in the Secretary of State`s records. The registration of a name is valid for one year and can be extended. When it comes to name reservation, you must first choose a name that has not already been assigned by another company and reserve it at the office of the Secretary of State in your home state. 3 min spent reading Yes. Sections 71.201 and 71.202 of the Texas Business & Commerce Code provide civil and criminal penalties for failure to comply with Chapter 71 provisions regarding the adopted name. Finally, a name reservation is an additional non-refundable expense. The money also doesn`t go towards the actual cost of starting your business. As a general rule, we recommend simply integrating your business once you`ve found a suitable business name, as in many (if not most) cases, reserving a name is an unnecessary expense. No. Chapter 71 of the Texas Business & Commerce Code does not allow the rejection of an accepted name certificate due to a name conflict. As a result, multiple accepted name certificates for exactly the same name may be filed with the Secretary of State.
An assumed name certificate provides information about the identity and location of the underlying company. It does not give the declarant the right to use the adopted name in a manner contrary to law, contrary to the lawful use of the name by others, and it does not prevent anyone from registering the same adopted name or using the name to create a new entity with the Secretary of State. It is the responsibility of each business entity to protect its name and goodwill. Name search procedures vary depending on the state you live in, but you typically search an online database provided by your Secretary of State. Some states, such as California, require you to send a name availability request by mail. In addition, the state requires that you send a letter called a “Name Availability Request Letter” to search for an available name. First, you need to perform a business name search to make sure that the name you want is not already used for your business in your state. Once you have checked availability, you will need to fill out the name reservation form. The exact information required may vary from state to state, but you`ll likely include: To learn more about name reservation, you can post your job posting on the UpCounsel website. UpCounsel attorneys provide additional information about reserving company names and what you need to do during the registration process. In addition, you will receive more information about the necessary maintenance procedures for your business. This is really the only advantage of reserving your company name.
But since the right name plays a huge role in your business, including branding, marketing and more, reserving your name can be an important moment in the development of your new business. Please note that tax office staff can help you create an advance payment account, but cannot determine name availability or reserve a name. You can reserve a business name while you are formalizing your business. When it comes to name search, don`t stop at the state level. Your intended name may also be registered as a trademark. First, look for a list of different places to search for business names to make sure the name isn`t used elsewhere. If you no longer want the reserved name, you must perform procedures to resolve the name. Whichever name you choose, it may also be a good idea to reserve the name first. For example, you may like your name at first, but then opt for a better one. If you registered first, you will have no way to reverse the name if you want to change it. You can withdraw your name reservation at any time if you no longer wish to use the company name.
To unsubscribe, simply submit a notice of withdrawal of an entity name reservation to the Secretary of State. There is no registration fee. A declaration of withdrawal cannot be submitted online. Most of these companies offer name reservation services at reasonable prices, so it`s not too mandatory to hire this task. There are a few options when it comes to hiring a service to reserve your business name. The two terms may sound similar, but make no mistake, because they are actually two completely different terms. The “registration” of a company name is the terminology used for the formal acquisition of a company name. For example, suppose a sole proprietorship wants to operate under a name different from its corporate name. He can register a DBA with the Secretary of State or County Clerk, or form an LLC or corporation to register his name.
Under BOC section 5.053, a depositary authority or the name under which a foreign depositary authority registers for business in that state must be distinguishable in the records of the Secretary of State from the name of another depositary authority, foreign depositary authority, name reserve, or name registration filed with the Secretary of State. In addition, there are special circumstances in which a proposed name, which cannot be distinguished, may be used if the existing company consents in writing. Texas Administrative Code, Title 1, Part 4, Chapter 79, Subchapter C sets out the rules by which it is determined whether names are distinct, equal or available with consent. If you would like the Secretary of State to make a preliminary decision on the availability of names, you can call (512) 463-5555, dial 7-1-1 for relay services or email your name request to the Corporate Division. A final decision cannot be made until the document has been received and processed by the Secretary of State. Do not incur finance costs or execute documents based on a preliminary release. Also note that pre-authorizing a name or issuing a training certificate under a name does not entitle you to use a name that infringes another person`s rights to the name. For more information, see Brand FAQ. Depending on your state, your name can be reserved for as little as 30 days or an entire year. In most states, your reservation takes about 120 days. Booking your company name is only the first step in actual registration.