Filing an Assumed Name with the Secretary of State

The purpose of an assumed name is to grant businesses the legal right to operate by a separate professional identity that does not include an owner’s surname or the name on the original certificate of formation. An assumed name also allows you to operate multiple businesses without creating a new legal entity for each. For example, you may set up a corporation with a general name like Sara’s Flowers Shop, LLC. If you wish to open a chain of stores, then file an assumed name for each one. This is less expensive than incorporating each entity.

Another example would be registering a corporation with the name Masteller Law Firm, PLLC. To allow you to operate under variations of the name, you would file an assumed name for Masteller Law Firm or MLF, PLLC.

If you choose not to file an assumed name, your business may face some consequences. According to the Texas Business & Commerce Code (§71.201), an entity may lose the privilege of bringing suit in any court in the State of Texas under that name. For example,if you ordered furniture and supplies for your business office under an unregistered business name, and if the vendor takes your money but fails to deliver the supplies, you cannot sue the vendor unless you file a DBA for the business. It can also be considered fraud if you present your business or services under an uncertified name without providing proper notification. Filing an assumed name is an inexpensive and easy way to expand and protect your business.