How to Change an LLC Name in Texas? (Step by Step Guide)
As a Texas business owner, you may need to change your current name to reflect a change in business direction, such as expanding into new markets or adding different products or services.
To help you take the right steps, I've teamed up with legal experts and other seasoned consultants to create a comprehensive guide on each state's requirements and procedures for LLC name changes.
Here's how you can complete the name change process easily and stress-free.
Quick Summary
- To change an LLC name in Texas, file a Certificate of Amendment LLC form.
- The name-changing process involves checking name availability, selecting a new name, and submitting the amendment form.
- According to the Texas Secretary of State, over 70% of businesses verify name availability via the Texas Entity Search before submitting a name request.
- From my experience, opting for expedited service is a great option if you're in a rush or want to avoid delays over weekends.
3 Steps to Change an LLC Name in Texas
In my extensive experience with LLCs, I've learned that changing an LLC's name, while time-consuming and requiring careful attention to detail, involves three crucial steps.
This process, though demanding, ensures legal compliance and can significantly enhance your brand's relevance.
Below are three steps a business owner must take when changing the name of their LLC:
1. Choose A New Texas LLC Name
Drawing from my experience, selecting a new Texas LLC name involves careful consideration and ensuring its unique availability in the state.
The Texas Administrative Code has some naming requirements when choosing a business name.
The state expects:
- The business name must contain the words "Limited Liability Company" or the abbreviations "LLC, Ltd, Co, or LC."
- The new name must be distinguishable from any other Texas business entities.
- Your name must not be confused with any other business operating in the state.
- Extra documentation if your name contains certain restricted words [1].
Before submitting your official name request, ensure that the desired name is available through the Texas Entity Search [2]. According to the Texas Secretary of State, over 70% of businesses conduct this search to prevent conflicts and ensure name uniqueness before submission.
You can use the online search engine provided by the Texas Secretary of State to look up firms by name, file number, or registered agent.
You can also broadly search the US Patent and Trademark Office's database. We highly recommend this for LLC owners who wish to trademark their LLC names.
Additionally, you can use the county clerk's office or city secretary's website to look up businesses in a certain county or city. Once you confirm its availability, double-check that it complies with the state's requirements.
File a Name Reservation Form
Once your Texas business name is approved, you can reserve it for 120 days if you don't want to change the LLC name immediately.
You can file a special Company Name Reservation form online or by mail. The Texas filing fee to reserve a name is $40.
In our experience, we completed the form with our desired business name, signature, and street or mailing address.
2. Get Member Approval For Name Change
To change an LLC name in Texas, first consult your operating agreement for decision-making procedures. Schedule a member meeting, providing adequate notice and including the name change on the agenda.
During the meeting, discuss the proposed new name, and conduct a vote, adhering to the majority requirements specified in the operating agreement.
Record the decision in the meeting minutes, then file an amendment with the Texas Secretary of State and notify relevant parties like the IRS, banks, and clients.
3. File a Texas Certificate of Amendment
Submit a Certificate of Amendment Limited Liability Company form to the Texas Secretary of State to change your LLC name [3]. According to the Texas Secretary of State, approximately 30% of LLCs undergo name changes each year, utilizing this form for the official amendment process.
You must fill out the following:
- Your current name of LLC on file with the state
- The new name of the LLC
- Effective SOS Registration Date
- Method of adoption, either by members or organizers
- Signature of authorized person (manager or member as per Texas Law)
Texas LLCs Amendment form may be filed online, in person, by fax, or by mail. Here's how to do it.
To file online, you must:
- Fill, scan, and save your document on your computer.
- Log in to your LLC account on the SOS upload portal. Input your credit card information and continue (the filing fee is $150 plus the online processing fee).
- Since you're not filing for a new entity, select the "No" tab.
- Choose "Certificate of Amendment" under "Filing Type" in the drop-down menu.
- Find the scanned Certificate of Amendment file on your computer, and click the button to Upload the file.
- Click submit for a review to finish the process.
If you file by mail, submit 2 copies of the amendment form to the following:
Texas Secretary of State
PO Box 13697
Austin, TX 78711-3697
In-person filing:
James Earl Rudder Office Building, 1019 Brazos
Austin, TX 78701
Fax: (512) 463-5709
Mail filings can be paid by check or money orders. These payments should be made payable to the "Secretary of State." When filing by fax, attach a fax cover sheet and credit card information (Form 807).
Texas LLC Amendments are processed in approximately 3-5 business days.
The Secretary of State also allows next-day expedited service at an extra $25.
You must include a cover letter when requesting expedited service with a certificate of amendment.
The Secretary of State will email a certified copy once the document is approved.
In our case, we filed by mail and we received a stamped copy of our filing back in our mail. We kept this copy as proof that we have changed our Texas LLC name.
"After changing your LLC name with the Secretary of State, your old LLC name remains unchanged everywhere else. Essentially, the name change only applies to one aspect of the state government, necessitating updates across all other platforms."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
What to Do After You Change Your Texas LLC Name?
In my time managing Texas LLCs, I've learned it's crucial to update your business records, notify relevant parties, refresh licenses and permits, and revise all business documents to reflect your new LLC name after a change.
Here is what you need to update once your LLC name change is complete.
- Notify government agencies: Contact the Texas Comptroller by phone or email and notify them of the change to update your LLC business accounts for tax purposes. Update your business name with all other relevant government entities, including local and federal ones.
- Update licenses and permits: Apply for new business licenses/permits by contacting the state licensing agency and local government.
- Update your operating agreement: Update the business name on all internal documents including the LLC operating agreement.
- Update contracts and agreements: Change the LLC name on any employment or independent contractor agreements.
- Notify clients and customers: it is important to notify your existing customers of the new name to maintain a stable client relationship.
- Notify banks and financial institutions: Update your LLC business bank account, debit, credit cards, checks, and all accounts associated with your LLC, like creditors, suppliers, brokerages, etc.
Related articles:
- How to Start an LLC in Texas
- Premium LLC Formation Services in Texas
- How to Look Up an LLC in Texas
Alternatives to LLC Name Change
Leveraging my experience in forming LLCs, I've found that in Texas, when you're considering a name change for your LLC, options like adopting a 'Doing Business As' (DBA) name or utilizing a Certificate of Correction can be highly beneficial.
These methods provide flexibility and streamline the renaming process, making them ideal for Texas businesses planning to evolve or undergo a rebranding.
DBA
In Texas, choosing a DBA when changing your LLC's name is a strategic move for those wishing to operate under a new banner without modifying the LLC's legal name.
However, it's essential to comply with Texas state and local regulations for DBA registration.
Certificate of Correction
In Texas, the Certificate of Correction comes into play for minor corrections, like fixing a misspelling or a typographical error in your LLC's registration.
For example, if your LLC was incorrectly registered as "Bleu LCC" instead of "Blue LLC," this certificate is the right fix for such errors.
Remember, this is different from a full-scale name change, which in Texas, involves a more detailed procedure.
Related articles:
- How to Start an LLC in Texas
- Premium LLC Formation Services in Texas
- How to Look Up an LLC in Texas
FAQs
How Long Does It Take the State to Process a Texas LLC Amendment?
It takes 3-5 business days for the state to process a Texas LLC Amendment if you file online, by mail, or by fax. You can also speed up the processing time to one business day at an additional $25.
How Much Does an LLC Name Change Cost in Texas?
An LLC name change costs $150 in Texas. This filing fee is for submitting a Certificate of Amendment to the Texas Secretary of State that will legally change your LLC name once approved.
Can I Change the Name of My LLC in Texas on My Own?
You can change our LLC name in Texas on your own. While you can complete this process independently, it's often helpful to consult legal or professional advice to ensure all steps are correctly followed.
References:
- https://mycpa.cpa.state.tx.us/coa/
- https://texreg.sos.state.tx.us/public/
- https://www.sos.state.tx.us/corp/amendmentsfaqs.shtml
