When you meet someone new, what’s the first thing you want to know about them? Their name. Your name is unique—it’s how people remember you.
The same goes for your Texas business: choosing your name is the most important step of forming your company. Unfortunately, it’s not as simple as just picking the name you like best from a list. That works for babies, but not businesses. Texas has several requirements that you’ll need to follow as you pick a name.
After brainstorming a business name either on your own or through a business naming tool, you’ll want to make sure it is available in your state. That’s where this guide comes in. We’ll walk you through how to use the tool, and we’ll dig into a few ways you can make your name a complete success. Let’s get started.
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How to Use the Texas Business Name Search Tool
You’ve picked a name. You’re pretty sure it’s the one. But before you seal the deal, you’ll need to ensure that it’s available for you to use. To do so, you’ll need to use the Texas search tool. Theirs is called the Taxable Entity Search.
But we’ll be honest. The tool isn’t exactly the most intuitive. You might be thinking, What’s next? If you don’t know what to do, this name search can be downright overwhelming. But with a few simple pointers, it can be a cinch.
1) Type in the name you’re hoping to use
Technically, your LLC’s legal name will include an entity type identifier like “LLC” or “Limited Liability Company.” For example, you might call your business “Carla’s Cupcakes” in conversation, but your legal name might be “Carla’s Cupcakes LLC.” But for purposes of this search, you can leave off the identifier and just type “Carla’s Cupcakes.”
2) Make sure the tool’s settings are correct
The Taxable Entity search isn’t too complicated to use. There aren’t any fancy settings to account for. Instead, your “settings” are what you type. We actually recommend running two searches. First, you’ll want to run an exact match search by typing in your full desired name and hitting the Captcha. This will check that there are no businesses already using that name.
Then we recommend running a keyword search simply by typing in a keyword from your desired name. For example, you might search “cupcakes.” In response, the tool will pull up all business names that include that word. This second search isn’t a legal necessity, but it’s a quick way to check how well your business name stands out.
3) Examine the search results
Now it’s time to look through the results. Do any exact matches appear? What about similar ones from the keyword search?
In Texas, your name must be “distinguishable on the record.” In layman’s terms, that means your name cannot be the exact same as the name of another entity. It can’t be too similar to another name, either. Texas has some specific rules about what makes a name different enough.
For example, the following factors can make a name distinguishable:
- At least one keyword is different
- The sequence of the word is changed
- The keywords are the same, but expressed in a different language
- Two words that are different derivatives of the same root word
- One or more keyword sounds the same, but their face meaning differs
- Prepositions and conjunctions only make a name distinguishable if they substantial change the meaning of the name
Basically, your name must be different thanks to a substantial word or phrase, not just a tiny one.o use.
Next Steps for Your Texas Business Name
The steps we’ve listed above are just the legal requirements for a Texas LLC name. But this is your business name we’re talking about. You don’t want to just “get by.” You want to go the extra mile and make sure your name is as great as your business concept. You want to protect it, too.
Let’s talk about what you can do to protect (and thrive with) the name you’ve chosen.
1) Double-check that your name meets state requirements
The Texas search tool will only tell you if your name is available to begin with. It won’t, however, tell you if your name complies with state laws for your entity type. Here are some rules to name by:
- Your name cannot falsely state your purpose or imply that you’re affiliated with a government organization.
- Your name cannot include any grossly offensive language.
- Your name can be in any language, but it must be written in English characters, Arabic numerals, and standard special characters. In general, acceptable characters are those found on a typical American keyboard.
- Your name cannot include words like “Olympic,” “Bank,” “University,” “College,” “Veteran,” or other restricted words unless you have written consent from the appropriate governing board.
2) Make sure that your name stands out
The search tool will help you ensure that your name is available in Texas. It won’t tell you if there are similar names, though. It also won’t search names in other states. The search tool simply isn’t designed to do that.
We recommend that you also browse through local phone books and do a Google search with your name. Internet search engines pull up results that are close matches to the terms you enter. That includes similar names and businesses in other states. For example, going back to our “Carla’s Cupcakes” example, Google pulls up a hit for a cupcake shop in Virginia.
If that happened to you, it wouldn’t be a make-or-break issue right away. After all, you’re just focused on Texas results right now. That said, if you ever wanted to expand into other states later on, then you might encounter problems. Plus, having a truly unique name is a great selling point.
3) Make sure you like the name you’ve chosen
This might seem like an obvious one, but you don’t want to overlook it. You should like your business’s name. You should be proud to say it out loud, glad to write it down, excited when you hear someone say it…you get the idea.
Yes, you’re eager to start your business. But don’t get so excited that you settle on a lackluster name that makes you think, “meh.” If you don’t like the name, odds are your customers won’t, either.
A lot of guides will tell you to make sure your name is easy to say, easy to spell, memorable, and gives your customers a clear picture of what they can expect from your business. And those are all true tidbits of advice. Follow them. But at the end of the day, we think it’s important to pick a name that you like.
4) Protect your chosen name
By now, you’ve put in a lot of work to craft the perfect name for your business. Let’s make sure that work doesn’t go to waste. Texas gives you two methods to protect your name, and you can pick one or the other—not both.
For starters, you could file an Application for Reservation or Renewal of Reservation of an Entity Name. There’s a $40 fee for this filing, but it gives you 120 days of exclusive use of your name without actually commencing your business. This is the perfect option if you’ve come up with an ideal name but you’re not quite ready to form your business yet.
But if you are all set to form your business, then you should go ahead and file the Certificate of Formation. This one has a $300 filing fee, but it actually creates your business. And once your business is created, your name is protected, too.
5) Get a DBA or Assumed Name (Optional)
The most important name for your business is your legal name; it’s the name you’ll fill in on your Certificate of Formation. But many businesses choose to have a second name, often called a DBA or assumed name. For instance, you might want to offer a second product line without renaming your entire business, or you just found a new nickname you like.
Any time you do business under a name that’s not your legal name, you’re required to register it. Assumed names are not protected for exclusive use, though. Thankfully, registering one is pretty easy. As an incorporated entity, you’ll file on the state level using an Assumed Name Certificate (unincorporated entities file with their local county clerk). This filing costs $25, but once it’s complete, your registration lasts for 10 years.
Want more info? Get the full scoop on registering an assumed name here.
Next Steps – Getting Started
We’ve gone into a lot of detail about searching for a Texas business name in this guide, but here’s the deal: choosing an LLC name is just one step in the much bigger process of starting a business.
If you’re feeling a bit overwhelmed by all that goes into it, don’t panic. We’re here to help. You can catch the full guide to set up a Texas LLC, but here’s the fly-by version:
Choose a business name
Every business in Texas needs a name that’s both catchy and gives potential clients a good idea what the business does. The name also needs to be unique—both for legal reasons and so your business stands out from the competition.
Appoint your registered agent
Whether you elect to use a private Texas registered agent, serve as your own, or you hire a service like the one we’ve listed here, you can’t skip this step. Without a registered agent, you won’t become a legitimate, registered entity.
File your formation documents
If you’re forming an LLC, you’ll need to file the Certificate of Formation; corporations file a different version of the same form. Once you fill it out and file it, this document is what officially forms your business in the state. There is a $300 fee for both entity types. If you need help with this step, there are plenty of good Texas LLC services online.
Beyond that, there are plenty of ongoing costs and maintenance requirements. We won’t go into a ton of detail here, though. Your registered agent (or online registered agent service) will help you keep tabs.
Conclusion
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Conducting a business name search is an important part of forming your business in Texas. The search saves you time and helps you set up a name that makes your business stand out. We hope this guide made it simple to name your business.