How to Choose a Business Name for a New LLC in Texas and Check Its Availability
Choosing the right name for your new LLC is one of the most important steps in starting your business in Texas. The name you select will represent your brand, attract customers, and ensure your business stands out.
However, Texas law imposes specific rules and requirements for LLC names. Additionally, you must ensure your chosen name is available before proceeding with registration. This article walks you through the process of choosing a business name for your LLC in Texas and how to check its availability.
Our website has additional articles on Texas business and choosing a business name in Texas. We have LLC formations guides for each of the 50 states.
1. Understand Texas LLC Naming Requirements
Texas law requires LLC names to meet certain criteria to be approved. When brainstorming a name, ensure it complies with the following rules:
a. The Name Must Include an LLC Designator
Your LLC’s name must include one of the following phrases or abbreviations:
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Limited Liability Company
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Limited Company
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LLC or L.L.C.
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LC or L.C.
b. The Name Must Be Distinguishable
Your chosen name must be unique and distinguishable from other businesses registered with the Texas Secretary of State. Minor differences, such as changes in punctuation or adding “the” or “and,” are not enough to make a name unique.
c. Restricted and Prohibited Words
Certain words require additional approval or are prohibited altogether. For example:
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Words like “Bank,” “Attorney,” or “University” may require proof of authorization or licensure.
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Profane or deceptive language is not allowed.
d. Avoiding Trademark Conflicts
Beyond state-level compliance, ensure your name does not infringe on existing trademarks. You can check federal trademarks via the U.S. Patent and Trademark Office (USPTO) database.
2. Brainstorm a Memorable and Meaningful Name
While ensuring legal compliance, consider these tips for creating a compelling business name:
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Reflect Your Brand: The name should communicate the purpose or values of your business.
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Keep It Simple: Choose a name that’s easy to spell, pronounce, and remember.
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Think About the Future: Avoid overly specific names that might limit your ability to expand your product or service offerings.
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Check Domain Availability: If you plan to have an online presence, verify that the domain name for your business is available. Tools like GoDaddy or Namecheap can help with this.
3. Check Name Availability in Texas
Before filing your LLC paperwork, you must ensure that your desired business name is available for use. Here’s how to check name availability in Texas:
a. Search the Texas Secretary of State Database
The Texas Secretary of State provides an SOSDirect portal where you can search for existing business names. Follow these steps:
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Visit the SOSDirect website.
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Create a user account or log in as a temporary user.
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Use the “Name Availability Search” tool to check if your desired name is already in use.
If the name is available, you can proceed with your LLC formation. If not, you’ll need to modify your name or choose a different one.
b. Reserve the Name (Optional)
If you’ve found an available name but aren’t ready to file your LLC documents, you can reserve the name. File Form 501, the Application for Reservation or Renewal of Entity Name, with the Texas Secretary of State. The reservation costs $40 and holds the name for 120 days.
c. Confirm Availability by Phone
For additional confirmation, you can contact the Texas Secretary of State’s office at 512-463-5555 to check the availability of a name.
4. Register Your LLC Name in Texas
Once you’ve chosen and confirmed an available name, you’ll include it in your LLC formation documents, such as the Certificate of Formation (Form 205). This document officially registers your LLC name with the Texas Secretary of State.
5. Protect Your Business Name
After successfully registering your LLC name, consider taking steps to protect it further:
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Trademark Your Name: If your name is integral to your brand, registering it as a trademark can prevent others from using it.
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Purchase Domain Names: Secure the web domains associated with your business name, even if you’re not building a website immediately.
Conclusion
Choosing the perfect name for your Texas LLC requires creativity, compliance with state laws, and careful research to ensure availability. By following the steps outlined above, you can confidently select a name that represents your brand and sets your business up for success. Once your name is registered, you’ll be ready to focus on building your business and connecting with customers.