Forming a Houston, Texas DBA in 5 Steps

A DBA or Assumed Business Name is any name that a business uses that is different from its own legal name. DBAs are available for either incorporated entities (LLCs, Corporations, etc.) or for unincorporated entities (sole proprietorships and general partnerships).

DBAs got their start as a form of consumer protection, so bad guys couldn’t hide behind fictitious business names but had to reveal (and be liable for) their actions regardless of what name they used.

You can use a DBA for advertising, proving the business exists, opening a business bank account, and accepting credit cards as a merchant, among other advantages. Use it to simplify a corporate name, introduce a new product line, or to not use a person’s legal name.

A disadvantage of a DBA is that it is not a type of business structure that provides protection to the business owner, like a limited liability company (LLC) would do.

It will be your decision whether or not to use a fictitious name instead of the business’s legal name. But there are some situations where a DBA is virtually required.

The most common use of a DBA is in a sole proprietorship or a partnership where the business name is different from the full legal names of the person or people who operate the business. This is true even if the name is a part of the business—for example, “Bob’s Greenhouse.”

No Limits

There are no limitations to the number of DBAs that a Houston legal entity can have. As listed in the next section, there are several limitations on what a DBA can call itself.

After you have decided on a name, and before you register that name as a Houston DBA, take the necessary steps to make that name legally yours. Check the names of businesses by conducting a business license search of whichever county your DBA is setting up shop: Harris, Montgomery, or Fort Bend.

Ensure that another business is not using the assumed name you want to use. If the assumed business name is not unique, it cannot be protected under Texas law.

If you have created a unique business name, then register that name as an assumed name with the state or county, as shown below. Also, be very aware that there are certain words or designations that you cannot use in a Texas DBA:

• You cannot use a DBA name that is misleading about the nature of the business.
• You cannot use a name connected to the banking and insurance business unless the business is licensed in those areas.
• You cannot use a professional name (Doctor, Attorney at Law, etc.) unless you are licensed in those areas.
• You cannot use any indication that the DBA is a corporation unless one of the entities named in the application for registration is itself a corporation.

You can own your business name so that no one else can use it. That name will have to be unique, though.

To begin with, you have to make sure that no one else can use it in business or on the internet. This means that you have to ensure that no one else is currently using that name.

For the internet, make sure the internet domain name is available. Then follow the steps to own that domain name (that will only cost a few dollars).

You can trademark that name (or register your service mark) with the United States Patent and Trademark Office (USPTO) if you expect to work in other states. This process takes time and money, but your name is still protected as a common law trademark.

Once you receive your federal trademark, register that trademark or service mark back with the state of Texas. You can also register a trademark/service mark with the State of Texas without filing for a federal trademark.

Your assumed name will be registered or reserved in Houston County if the underlying business is a:

• Sole proprietorship
• General partnership
• Joint venture
• Estate
• Real estate investment trust (REIT)

Incorporated business entities register an assumed name with the State of Texas. These include:

• Limited liability companies (LLCs), including professional LLCs
• Corporations, for-profit or not for profit, and all other incorporated entities
• Professional associations
• Limited liability partnerships (LLP)
• Foreign filing entities

The assumed business name must be filed with the appropriate county where the business premise will be maintained. If no business premise will be maintained, it must be on file where the business will be conducted. The websites for the Houston Clerk’s Offices are as follows:

1. Harris County Clerk’s Office
2. Montgomery County Clerk’s Office
3. Fort Bend County Clerk’s Office

Once you go to the appropriate website, the procedures are laid out for you step-by-step. You can register online. You can also download the form, fill it out, and mail it in or take it to the Clerk’s office in person. The registration or reservation forms are detail-intensive for the state or the county, so have all of your business information available before you start. You will be asked, among other things, for:

• The proposed assumed business name of the DBA
• Principal business address of the DBA
• Names, addresses, and email addresses of individuals with an interest in the business (owners)
• Certificate of ownership of the underlying business entity
• Names and addresses of legal entities with an interest in the business
• Purpose of the business
• Contact information
• Signature
• Notarization (each owner must either produce a notarized signature individually or have that signature acknowledged by a Deputy Clerk at the appropriate County Clerk’s office)
• Filing fee

The county filing fees range from $15-25.

Once the registration or reservation is approved, The DBA remains valid for ten years from the date of approval. It can then be renewed every ten years with no limits or lapses. If the DBA is no longer functioning at any time, it can be withdrawn by filling out the form on the appropriate county clerk’s website.