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Texas Incorporation Laws Have Bite

Date: 10/28/2005 | Category: Business | Author: developers

Starting a business in Texas? Considering everything that goes into incorporation, it’s better to know the rules about establishing a business name in the Great Lone Star State. A trade name is considered a fictitious or assumed name if your business is incorporated under any name other than your own legal name. While this is a perfectly valid business practice, most states require the registration of the name so that anyone searching for who owns the business can determine the owner.

This is very true of Texas, like most states, it requires that businesses who operate under an assumed name or trade name to register a fictitious name certificate. Unlike other states, however, Texas means business about filing that certificate. If a certificate of fictitious name is not filed when it is supposed to, the owners can be charged with a Class A misdemeanor and face criminal penalties, including fines that can be up to $2000.

Sole proprietors and general partnerships that do business under an assumed name in Texas must file an assumed name certificate with the county clerk in each county where the business has or will maintain business premises or, if none, in each county where it does business. Corporations, LLCs, LLPs and limited partnerships that operate in Texas under an assumed name must file a Form 503 with the Statutory Filings Division of the Texas Secretary of State’s office and also with the county clerk of the county the business resides in.

So whether incorporating as a personal business or getting into business with several partners, make sure you pay attention to the statues with regard to Texas Business Law. For more information check out the Business Organization FAQs on the Texas Secretary of State Website

For more help incorporating your business in Texas check out or call at 888-284-3821.