As a business law attorney, I often encounter company owners that are not formed but have a DBA. A DBA stands for Doing Business As and is most often filed with the local court for a small fee. Unfortunately, the DBA does nothing for you other than giving you a company name to put on business cards and occasionally open up bank accounts under that DBA if the banking institution allows. A DBA does NOT protect you personally.
A DBA offers no protection of your personal assets from lawsuits.
To receive proper protection and separate your personal assets from your business assets, you need to form a proper legal entity. The more common entity in Texas is the Limited Liability Company (LLC). An LLC is a formed company with the Texas Secretary of State that does protect your personal assets from lawsuits.
Can I form an LLC with my DBA?
Yes, you can file for the LLC with the company name you have been using under the DBA so long as it is not taken. We often do name availability checks prior to forming a company.
How do I form a Limited Liability Company (LLC)?
You need to form the company and file a certificate of formation with the Texas Secretary of State. This is something one of our business lawyers at the firm can assist you with in filing the LLC.
If you or someone you know would like more information about filing a Limited Liability Company or has business law questions, contact an attorney at Oxner Legha Law Firm by calling 346-327-9500.