Outline
The Texas 503 form, officially known as the Assumed Name Certificate, plays a crucial role for businesses operating under a name different from their legal entity name. This form is essential for both domestic and foreign entities, including corporations, limited liability companies, and partnerships, that conduct business in Texas under an assumed name. Filing this certificate not only fulfills statutory requirements but also serves as public notice of the business's operational identity. However, it’s important to note that filing this form does not grant any rights to the name in cases of conflicting claims or common law issues. The certificate remains valid for a maximum of ten years and can be renewed, but any changes to the business's information require a new filing. Additionally, the Texas Business & Commerce Code outlines penalties for noncompliance, underscoring the importance of timely and accurate submissions. Understanding the nuances of this form, including the necessary information and filing process, is vital for any entity looking to establish its presence in Texas.
Sample - Texas 503 Form
Form
(Assumed Name Certificate)
The attached form is drafted to meet minimal statutory filing requirements pursuant to the relevant code provisions. This form and the information provided are not substitutes for the advice and services of an attorney and tax specialist.
Commentary
A domestic or foreign corporation, limited liability company, limited partnership, limited liability partnership, or other foreign filing entity that regularly conducts business or renders a professional service in this state under a name other than its legal name (the name stated in its certificate of formation or comparable document) must file an assumed name certificate with the secretary of state. (Texas Business & Commerce Code [TBCC] § 71.103).
Effect of Filing: The effect of filing is to give notice to the public that the entity is conducting business under that name. The filing of an assumed name shall not constitute actual use of the assumed name for determining priority of name; nor does the filing of assumed name give the registrant any right to use the name when contrary to the common law or statutory right of unfair competition, unfair trade practices, common law copyright or similar law (TBCC § 71.157). Since the filing is a notice filing, the secretary of state does not have the authority to review the name of the certificate to determine if the filing conflicts with another name on file with this office.
Changes to Information: There is no procedure for an amendment to or correction of an assumed name certificate. If there is a material change in the information on the certificate, a new certificate should be filed (TBCC § 71.152). The new certificate should be filed within 60 days after the occurrence of the events which necessitate the filing. An event that causes the information contained in a certificate to become materially misleading includes a change in the name or form of business of the assumed name registrant.
Duration: The assumed name certificate shall be effective for a term not to exceed ten years from the date the certificate is filed and may be renewed by filing a new certificate within six months of the expiration of the original certificate (TBCC § 71.151). A registrant may abandon the assumed name certificate before the expiration of the period of duration by filing an abandonment of the certificate (Form 504).
Noncompliance: The TBCC in sections 71.201 through 71.203 provides both civil and criminal penalties for failure to file the assumed name certificate.
Legislative Change: HB 3609, effective September 1, 2019, was enacted by the 86th Legislature and amended chapter 71 of the Business & Commerce Code to eliminate the
Instructions for Form
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Form 503 |
Instruction Page 1 – Do not submit with filing. |
is exactly the same as the legal name of the entity on file with the secretary of state, the certificate will be rejected for failing to provide an assumed name.
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•Items 3 and
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•Execution: A certificate filed with the secretary of state shall be executed by an officer, general partner, member, manager, representative of or attorney in fact for the corporation, limited partnership, limited liability partnership, limited liability company, or foreign filing entity. A certificate executed by an attorney in fact shall include a statement that the attorney in fact has been duly authorized in writing by the principal to execute the certificate. Please review the form carefully. Pursuant to section 71.203, a person commits an offense under section 37.10, Penal Code, if the person intentionally or knowingly signs or directs the filing of an assumed name certificate that the person knows contains a materially false statement.
•Payment and Delivery Instructions: The filing fee for an assumed name certificate filed with the secretary of state is $25. Fees may be paid by personal checks, money orders, LegalEase debit cards, or American Express, Discover, MasterCard, and Visa credit cards. Checks or money orders must be payable through a U.S. bank or financial institution and made payable to the secretary of state. Fees paid by credit card are subject to a statutorily authorized convenience fee of 2.7 percent of the total fees.
Form 503 |
Instruction Page 2 – Do not submit with filing. |
Submit the completed form in duplicate along with the filing fee. The form may be mailed to P.O. Box 13697, Austin, Texas
Revised 08/19
Form 503 |
Instruction Page 3 – Do not submit with filing. |
Form 503 (Revised 08/19)
Return in duplicate to: Secretary of State P.O. Box 13697 Austin, TX
512
Filing Fee: $25
This space reserved for office use.
Assumed Name Certificate
Assumed Name
1.The assumed name under which the business or professional service is, or is to be, conducted or rendered is:
Entity Information
2. The legal name of the entity filing the assumed name is:
State the name of the entity as currently shown in the records of the secretary of state or on its organizational documents, if not filed with the secretary of state.
3. The entity filing the assumed name is a: (Select the appropriate entity type below.)
Limited Liability Company |
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Nonprofit Corporation |
Limited Partnership |
Professional Corporation |
Limited Liability Partnership |
Professional Association |
Cooperative Association |
Other
Specify type of entity. For example, foreign real estate investment trust, state bank, insurance company, etc.
4.The file number, if any, issued to the entity by the secretary of state is:
5.The state, country, or other jurisdiction of formation of the entity is:
6.The entity’s principal office address is:
Street or Mailing Address
CityState CountryPostal or Zip Code
Period of Duration
7a. The period during which the assumed name will be used is 10 years from the date of filing with the secretary of state.
OR
7b. The period during which the assumed name will be used is |
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years from the date of filing |
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with the secretary of state (not to exceed 10 years). |
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OR |
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7c. The assumed name will be used until |
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(not to exceed 10 years). |
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mm/dd/yyyy |
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Form 503 |
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County or Counties in which Assumed Name Used
8.The county or counties where business or professional services are being or are to be conducted or rendered under the assumed name are:
All counties
All counties with the exception of the following counties:
Only the following counties:
Execution
The undersigned signs this document subject to the penalties imposed by law for the submission of a materially false or fraudulent instrument and also certifies that the person is authorized to sign on behalf of the identified entity. If the undersigned is acting in the capacity of an attorney in fact for the entity, the undersigned certifies that the entity has duly authorized the undersigned in writing to execute this document.
Date:
Signature of a person authorized by law to sign on behalf of the identified entity (see instructions)
Form 503 |
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Form Information
| Fact Name | Description |
|---|---|
| Purpose | The Texas 503 form is used to file an Assumed Name Certificate, which allows a business to operate under a name different from its legal name. |
| Governing Law | This form is governed by the Texas Business & Commerce Code (TBCC) § 71.103. |
| Filing Duration | An Assumed Name Certificate remains effective for a maximum of ten years. It can be renewed by filing a new certificate within six months of expiration. |
| Filing Fee | The filing fee for submitting the Texas 503 form is $25, which can be paid using various methods, including credit cards. |
| Noncompliance Penalties | Failure to file the Assumed Name Certificate may result in civil and criminal penalties as outlined in TBCC §§ 71.201 through 71.203. |
Detailed Guide for Filling Out Texas 503
Completing the Texas 503 form requires careful attention to detail to ensure all necessary information is accurately provided. After filling out the form, it must be submitted along with the required filing fee to the Secretary of State. The process involves several steps, which are outlined below.
- Item 1—Assumed Name: Enter the assumed name under which the business or professional service will be conducted. Ensure this name differs from the legal name of the entity.
- Item 2—Entity Name: Provide the legal name of the entity as it appears in its certificate of formation or comparable document.
- Items 3 and 4—Type of Entity and File Number: Select the appropriate type of entity from the options provided. If none apply, check "other" and specify the type. Include the file number assigned by the Secretary of State, if available.
- Item 5—Jurisdiction: State the jurisdiction where the entity was formed.
- Item 6—Principal Office Address: Fill in the street or mailing address of the entity’s principal office.
- Item 7—Period of Duration: Check the box that corresponds to the desired duration for the assumed name certificate, which can be up to ten years.
- Item 8—County or Counties: Indicate the counties where the assumed name will be used. Choose “All,” specify exclusions, or list specific counties as needed.
- Execution: Have an authorized person sign the document, certifying that they are permitted to do so on behalf of the entity.
- Payment and Delivery: Prepare the $25 filing fee and submit the completed form in duplicate. The form can be mailed, faxed, or delivered in person to the Secretary of State’s office.
Obtain Answers on Texas 503
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What is the Texas 503 form?
The Texas 503 form, also known as the Assumed Name Certificate, is a document required for businesses that operate under a name different from their legal name. This includes various types of entities such as corporations, limited liability companies, and partnerships. By filing this form with the Secretary of State, businesses provide public notice that they are conducting operations under a specific assumed name.
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Who needs to file the Texas 503 form?
Any domestic or foreign entity that regularly conducts business in Texas under a name other than its legal name must file this form. For instance, if a company named "ABC Corp" operates as "ABC Services," it must file an assumed name certificate. This requirement applies to various entities, including corporations, limited partnerships, and limited liability partnerships.
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How long is the assumed name certificate valid?
The assumed name certificate is valid for a maximum of ten years from the date of filing. If a business wishes to continue using the assumed name beyond this period, it must file a new certificate within six months of the original's expiration. This renewal process ensures that the assumed name remains officially recognized.
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What should a business do if its information changes?
If there is a material change in the information provided in the assumed name certificate, such as a change in the business name or structure, the business must file a new certificate. There is no option to amend the existing certificate. This new filing should occur within 60 days of the change to avoid any potential issues.
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What are the consequences of not filing the Texas 503 form?
Failure to file the assumed name certificate can result in both civil and criminal penalties as outlined in the Texas Business & Commerce Code. Not only does this filing serve as a public notice, but it also protects the business from potential legal disputes related to name usage. Ensuring compliance with this requirement is essential for maintaining a legitimate business operation in Texas.
Common mistakes
Filling out the Texas 503 form can be straightforward, but mistakes can lead to delays or even rejection. One common error is failing to provide a unique assumed name. If the name entered is identical to the legal name of the entity, the certificate will be rejected. Always ensure that the assumed name is distinct and meets the filing requirements.
Another frequent mistake is not including the legal name of the entity as it appears in official documents. This name must match what is filed with the secretary of state. Inaccuracies here can create confusion and may result in the form being sent back for corrections.
Many individuals overlook the importance of selecting the correct entity type. The form requires the filer to identify whether they are a corporation, LLC, or another type of entity. If none of the provided options apply, it’s essential to select "other" and specify the type. This detail is crucial for proper processing.
Providing the file number is often neglected. While it’s not mandatory, including the file number assigned by the secretary of state can help speed up the processing of the document. Without it, there may be unnecessary delays.
When it comes to the jurisdiction of formation, some filers forget to specify where their entity was established. This information is necessary to ensure compliance with state regulations. Always check that this detail is correctly filled out.
Another area where mistakes frequently occur is in the principal office address. This address should be accurate and complete. Omitting details or providing incorrect information can lead to complications in communication and processing.
Choosing the period of duration for the assumed name can also trip people up. The form allows for a maximum duration of ten years, but some filers may incorrectly specify a longer period or fail to check the appropriate box. Make sure to select an option that aligns with your intentions.
In terms of the counties where the assumed name will be used, it’s essential to provide accurate information. Some filers either list too many counties or fail to specify any. If the name will be used statewide, check the "All counties" option. If only in specific areas, be sure to list those counties clearly.
Execution of the form is another critical step. It must be signed by an authorized individual. If an attorney in fact is signing, they must indicate that they have the proper authorization. Failing to do so can result in the form being deemed invalid.
Lastly, submitting the form without the required payment can halt the process. Ensure that the filing fee is included and that payment methods are acceptable. Double-check that the correct amount is sent to avoid any processing issues.
Documents used along the form
When filing the Texas 503 form, which is the Assumed Name Certificate, several other forms and documents may be necessary or beneficial for business entities operating under an assumed name. Understanding these related documents can help ensure compliance and proper business operations in Texas.
- Form 504—Abandonment of Assumed Name Certificate: This form is used when a business decides to stop using an assumed name before the expiration of the original certificate. Filing this form formally abandons the name and removes it from public record.
- Form 807—Credit Card Payment Authorization: If filing via fax, this form is required to authorize payment by credit card. It includes spaces for credit card information and must accompany the faxed submission of the assumed name certificate.
- Form 205—Certificate of Formation: This document is essential for establishing a corporation or limited liability company (LLC) in Texas. It provides the legal name of the entity, which must be included in the assumed name certificate.
- Form 301—Application for Registration of a Foreign Entity: If a business entity is formed outside of Texas but wishes to operate within the state, this form registers the entity as a foreign entity. It is necessary for compliance before filing an assumed name certificate.
- Form 502—Change of Registered Agent: If a business changes its registered agent or registered office address, this form must be filed. Keeping this information current is crucial for effective communication and legal compliance.
- Form 503—General Information (Assumed Name Certificate) Instructions: While not a filing form itself, these instructions provide detailed guidance on how to correctly fill out the Texas 503 form, ensuring that all necessary information is included to avoid rejection.
- Form 401—Annual Franchise Tax Report: Most entities doing business in Texas are required to file this report annually. It ensures compliance with state tax obligations and helps maintain good standing, which is important for the validity of any assumed names.
Utilizing these forms in conjunction with the Texas 503 form can help streamline the process of operating a business under an assumed name while ensuring compliance with state regulations. Always consider consulting with a legal or tax professional for personalized advice based on specific business needs.
Similar forms
- Assumed Name Certificate (Form 503): This document serves as a notice to the public that a business is operating under a name different from its legal name. Similar to the Texas 503 form, it requires information about the entity and the assumed name, and it must be filed with the Secretary of State.
- Certificate of Formation: This document is essential for establishing a business entity in Texas. Like the Texas 503 form, it includes key details about the business, such as its legal name and purpose. However, it is filed at the inception of the business rather than for name registration.
- Fictitious Business Name Registration: In many states, this document is required to register a business operating under a name that is not its legal name. It shares similarities with the Texas 503 form in that it serves to inform the public of the business's operational name.
- Partnership Agreement: This document outlines the terms of a partnership, including the names of the partners. While it is not a filing document like the Texas 503 form, it does establish the legal names of the partners involved in the business, similar to how the assumed name certificate identifies the entity's legal name.
- DBA Registration (Doing Business As): This registration allows businesses to operate under a name other than their legal name. Like the Texas 503 form, it provides public notice of the name under which the business is conducted, although it may vary by state in terms of filing requirements.
- Business License Application: This document is often required to legally operate a business within a specific jurisdiction. It typically includes the business name, which may be an assumed name, similar to the information required in the Texas 503 form.
- Trademark Registration: This document protects a business's brand name and logo. While it serves a different purpose than the Texas 503 form, both documents involve the use of names and require specific information about the entity using the name.
Dos and Don'ts
When filling out the Texas 503 form, keep these important tips in mind:
- Do ensure accuracy. Double-check all information to avoid mistakes that could delay processing.
- Don't use your legal name as the assumed name. If the assumed name is the same as the legal name, the certificate will be rejected.
- Do file a new certificate for any changes. If your business information changes, you must file a new certificate within 60 days.
- Don't forget to specify the duration. Clearly indicate how long the assumed name will be used, not exceeding ten years.
Misconceptions
- Misconception 1: The Texas 503 form is only for businesses operating in Texas.
- Misconception 2: Filing the Texas 503 form guarantees exclusive rights to the assumed name.
- Misconception 3: An assumed name certificate can be amended easily.
- Misconception 4: The Texas Secretary of State checks for name conflicts when filing the 503 form.
- Misconception 5: An assumed name certificate lasts indefinitely.
- Misconception 6: You can file a Texas 503 form in any county.
- Misconception 7: You do not need to provide an address on the Texas 503 form.
- Misconception 8: Filing the Texas 503 form is optional for all businesses.
This form is applicable to both domestic and foreign entities that conduct business in Texas under an assumed name. Therefore, it is not limited to Texas-based businesses.
Filing the form does not provide any legal rights to the name. It merely serves as a public notice that the entity is operating under that name.
There is no procedure for amending an assumed name certificate. If changes are necessary, a new certificate must be filed.
The Secretary of State does not review the name for conflicts with other filings. It is the responsibility of the entity to ensure the name does not infringe on existing rights.
The certificate is valid for a maximum of ten years. It must be renewed before expiration to continue using the assumed name.
Since the requirement for county-level filing has been eliminated, the form is now filed solely with the Secretary of State, not at the county level.
The form requires the principal office address of the entity. This information is essential for public records.
For entities conducting business under an assumed name, filing the certificate is mandatory. Failure to file can result in civil and criminal penalties.
Key takeaways
Here are some important points to keep in mind when filling out and using the Texas 503 form, also known as the Assumed Name Certificate:
- Purpose of the Form: The Texas 503 form is used to notify the public that a business is operating under a name different from its legal name.
- Filing Requirement: Any business entity, whether domestic or foreign, must file this certificate if it conducts business under an assumed name.
- Duration of Validity: Once filed, the assumed name certificate is valid for up to ten years. It can be renewed by submitting a new certificate within six months of expiration.
- Changes to Information: If there are significant changes to the business details, a new certificate must be filed. There is no amendment process for existing certificates.
- Filing Fees: A fee of $25 is required when submitting the form. Various payment methods are accepted, including credit cards, but a convenience fee may apply.
- Execution of the Form: The form must be signed by an authorized individual, such as an officer or attorney in fact, who can certify that they have the authority to sign on behalf of the entity.
- County Information: The form requires you to specify the counties where the assumed name will be used. You can indicate if it will be used statewide or in specific counties.
- Legal Considerations: Filing this certificate does not guarantee exclusive rights to the name. It's important to ensure the name does not infringe on existing trademarks or copyrights.
Understanding these key points can help streamline the process of filing the Texas 503 form and ensure compliance with state regulations.