Naming your Texas Corporation
A business corporation is one of the most popular forms of business in Texas and this is due to the several benefits or advantages it has over other forms of business. Limited liability, ease of ownership transfers, and perpetual life are some of the top benefits. Over and above all, business corporations attract investors and venture capitalists (VCs). If you are thinking of incorporating your startup in Texas then there are some aspects to consider like choosing a business name. In order to choose a name, you will be required to conduct a Texas Corporation name search to check availability of the chosen name. It is important to note that there are certain Texas business name rules that you have to consider while naming your startup.
General Corporation naming rules
The naming of a Texas corporation is one of the foremost requirements towards the incorporation of your startup. There is a process for choosing an entity name and the process includes the ideation phase, finalizing a name, conducting a Texas Corporation name search, and reserving or registering the name. When you are in the ideation phase or “finalizing a name” phase, following Texas business name rules is crucial towards acceptance of the name in the office of the Secretary of State (SOS). The naming of your corporation is governed by the Texas Business Organizations Code (BOC) and the Texas Administrative Code. The naming rules for a corporation are as follows:
- Names should be distinguishable – The principal requirement according to Texas business name rules is that your chosen name should be clearly distinguishable from any other name in the database or records maintained by the Secretary of State. In other words, your chosen name cannot be the same or similar to a name being used by any other business registered in the state. The name has to be unique. A Texas Corporation name search can help you to determine if your name is unique or not.
- Abbreviations – One of the important Texas business name rules is the use of words or abbreviations in the name of a business entity. The name of a Texas corporation, Professional Corporation, and foreign corporation must contain the words “incorporated”, “corporation”, “company”, or “limited”. You can also use abbreviations like “Inc.”, “Corp.” “P.C.”, or “Ltd.” pursuant to Sec. 5.054 of the Business Organizations Code, Title 1, Chapter 5.
- False Implication – One of the salient aspects to remember prior to conducting a Texas Corporation name search is that the chosen name should not falsely imply any affiliation to a government agency.
Search Texas Corporation name availability in the Texas Comptroller’s website
The process of identifying the correct business name is crucial towards ensuring proper reservation of the business name. A Texas Corporation name search will help you in this endeavor by showing a database or record of all business names in the state, so that you can compare and ascertain if your chosen name is unique. You can conduct Texas business name availability search through the Taxable Entity Search tool on the Texas Comptroller of Public Accounts (CPA) portal.
Are you a first time business owner wondering how to form a corporation in Texas? IncParadise one of the most reputed registered agents in the state can provide information and assistance towards helping you to incorporate in Texas.