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Outline

In the world of business in Texas, ensuring that your entity's name is unique and compliant with state regulations is crucial. The Texas 509 form plays a vital role in this process by allowing the holder of an existing name to consent to the use of a similar name by another entity. This form is designed to meet the minimum statutory filing requirements, ensuring that all parties involved are protected under the law. It is important to note that while the form facilitates the naming process, it does not replace the need for professional legal advice. Consent to use a similar name must be obtained in writing from the holder of the existing name, and this consent cannot be withdrawn once the form is filed. However, it is essential to understand that the proposed name cannot be identical or deceptively similar to the existing name, even with consent. The Texas Secretary of State does not enforce trademark rights, so individuals must remain vigilant in protecting their interests. This form, which must be submitted alongside the relevant filing instrument, is a simple yet significant step in establishing a business identity in Texas.

Sample - Texas 509 Form

General Information

(Consent to Use of Similar Name)

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.

Commentary

A proposed name for an entity can be similar to an existing name only if the holder of the existing name consents in writing. Tex. Bus. Orgs. Code § 5.053. Existing names include the names of active Texas filing entities, the names and fictitious names of active registered foreign filing entities, reserved names, and registered names.

This form can be used by the holder of an existing name to consent to the use of a similar name as the name of a filing entity or foreign filing entity for the purpose of submitting a filing instrument to the secretary of state. Use of this form is permissive. Consent can be given in any written format. A proposed name cannot be “the same as” or “deceptively similar to” an existing name, even if the holder of the existing name consents.

The holder of an existing name is not required to give consent. Consent does not authorize the use of a name in Texas in violation of a right of another under the Trademark Act of 1946, as amended (15 U.S.C. Section 1051 et seq.); Chapter 16 or 71, Business & Commerce Code; or common law. The secretary of state does not enforce these rights. Once the secretary of state files an instrument based on written consent to the use of a similar name, consent cannot be withdrawn. The secretary of state cannot enforce any private agreements or conditions the parties may have entered into regarding consent to use of the similar name. Questions about consent should be addressed to a private attorney.

Texas Administrative Code, title 1, part 4, chapter 79, subchapter C sets out the rules for determining whether names are the same, deceptively similar, or similar. These rules may be viewed at http://www.sos.state.tx.us/tac/index.shtml.

Instructions for Form

Item 1: Enter the name of the entity or individual who holds the existing name.

Item 2: Enter the proposed name.

Execution: The form must be signed on behalf of the person who holds the existing name. If the existing name is held by an entity, an individual who is authorized to act on behalf of the entity must sign the form.

A person commits an offense under section 4.008 of the BOC if the person signs or directs the filing of a filing instrument the person knows is materially false with the intent that the instrument be delivered to the secretary of state for filing. The offense is a Class A misdemeanor unless the person’s intent is to harm or defraud another, in which case the offense is a state jail felony.

Submission: Submit the form with the relevant filing instrument. Do not submit separately from the relevant filing instrument. If written consent is not submitted with the relevant filing instrument, the secretary of state will not be able to take the consent into consideration.

Revised 12/10

Form 509

1

Form 509 (Revised 12/10)

Submit with relevant filing instrument.

Filing Fee: None

Consent to Use of Similar Name

(1)

Name of the entity or individual who holds the existing name on file with the secretary of state

consents to the use of

(2)

Proposed name

as the name of a filing entity or foreign filing entity in Texas for the purpose of submitting a filing instrument to the secretary of state. This consent does not authorize the use of the similar name in violation of a right of another under the Trademark Act of 1946, as amended (15 U.S.C. Section 1051 et seq.); Chapter 16 or 71, Business & Commerce Code; or common law.

(3)The undersigned certifies to being authorized by the holder of the existing name to give this consent. The undersigned signs this document subject to the penalties imposed by law for the submission of a materially false or fraudulent instrument.

Date:

By:

Name of existing entity, if any (type or print)

File number of existing entity, if any

Signature of Authorized Person

Name of Authorized Person (type or print)

Title of Authorized Person, if any (type or print)

Form 509

2

Form Information

Fact Name Fact Description
Purpose The Texas 509 form allows the holder of an existing name to consent to the use of a similar name for a filing entity or foreign filing entity.
Governing Law This form is governed by Tex. Bus. Orgs. Code § 5.053 and related provisions.
Submission Requirement Submit the form with the relevant filing instrument. Do not submit it separately.
Consent Limitations Consent does not allow the use of a name that is identical or deceptively similar to an existing name, even with consent.

Detailed Guide for Filling Out Texas 509

Filling out the Texas 509 form is a straightforward process that requires careful attention to detail. This form is essential for obtaining consent to use a name similar to an existing one. After completing the form, it must be submitted along with the relevant filing instrument to the Secretary of State. Here’s how to fill it out step-by-step:

  1. Item 1: Enter the name of the entity or individual who holds the existing name. This is the name currently registered with the Secretary of State.
  2. Item 2: Enter the proposed name that you wish to use. Ensure that this name is not the same as or deceptively similar to the existing name.
  3. Execution: The form must be signed by the person authorized to act on behalf of the holder of the existing name. If the existing name is held by an entity, an authorized individual must sign.
  4. Certification: The signer must certify that they are authorized to give this consent. This certification is important to ensure the validity of the form.
  5. Date: Write the date on which the form is completed.
  6. Signature: The authorized person should sign the document.
  7. Name of Existing Entity: If applicable, type or print the name of the existing entity.
  8. File Number: If the existing entity has a file number, include it here.
  9. Name of Authorized Person: Type or print the name of the individual who signed the form.
  10. Title of Authorized Person: If applicable, type or print the title of the authorized person.

After completing these steps, ensure that the form is submitted together with the relevant filing instrument. It’s important to remember that the Secretary of State will not consider the consent if the form is submitted separately. Double-check for accuracy before submission to avoid any potential issues.

Obtain Answers on Texas 509

  1. What is the purpose of the Texas 509 form?

    The Texas 509 form is used to obtain consent from the holder of an existing name for the use of a similar name by a filing entity or foreign filing entity. This consent is necessary to comply with Texas law, which requires that a proposed name cannot be the same as or deceptively similar to an existing name without written consent.

  2. Who needs to sign the Texas 509 form?

    The form must be signed by the person who holds the existing name. If the existing name is associated with an entity, an individual authorized to act on behalf of that entity must sign the form. This ensures that the consent is valid and legally binding.

  3. Is there a fee associated with filing the Texas 509 form?

    No, there is no filing fee required for submitting the Texas 509 form. However, it must be submitted along with the relevant filing instrument to the Secretary of State for it to be considered valid.

  4. Can consent given through the Texas 509 form be withdrawn?

    Once the Secretary of State files an instrument based on the written consent provided in the Texas 509 form, that consent cannot be withdrawn. It is important to understand that the consent is final once filed, and any private agreements regarding the use of the name are not enforced by the Secretary of State.

  5. What happens if the Texas 509 form is not submitted correctly?

    If the Texas 509 form is not submitted with the relevant filing instrument, the Secretary of State will not consider the consent. This could result in the rejection of the filing, delaying the process of establishing the new entity name.

  6. Where can I find more information about name similarity rules in Texas?

    For more details on how names are evaluated for similarity, you can refer to the Texas Administrative Code, title 1, part 4, chapter 79, subchapter C. This resource outlines the specific criteria used to determine whether names are the same, deceptively similar, or simply similar.

Common mistakes

Filling out the Texas 509 form requires careful attention to detail. One common mistake is failing to provide the correct name of the entity or individual holding the existing name. This information is crucial, as it must match exactly what is on file with the Secretary of State. A simple typo can lead to delays or rejection of the filing.

Another frequent error involves the proposed name. Some individuals mistakenly believe that they can use a name that is merely similar to an existing name without proper consent. It is essential to remember that consent must be obtained in writing from the holder of the existing name. Without this consent, the proposed name cannot be used.

People often overlook the execution section of the form. The form must be signed by someone authorized to act on behalf of the entity holding the existing name. If this step is ignored, the submission may be deemed invalid. Furthermore, if the existing name is held by an entity, the signature must come from an individual with the appropriate authority.

Another mistake is submitting the form separately from the relevant filing instrument. The Texas 509 form must accompany the filing instrument. If it is submitted alone, the Secretary of State will not consider the consent, potentially resulting in a failed application.

Some individuals fail to understand the implications of providing false information. Signing the form while knowing that the information is materially false can lead to serious legal consequences, including misdemeanor or felony charges. It is crucial to ensure that all information provided is accurate and truthful.

Additionally, many people neglect to check the rules regarding what constitutes a "deceptively similar" name. This can lead to confusion and potential issues with the filing. Reviewing the Texas Administrative Code can provide clarity on this matter.

Lastly, individuals may not realize that once consent is given and the Secretary of State files the instrument, that consent cannot be withdrawn. This emphasizes the importance of being certain about the decision to grant consent before signing the form.

Documents used along the form

The Texas 509 form is essential for obtaining consent to use a similar name for a business entity. However, there are several other documents that often accompany this form to ensure compliance with state regulations. Below is a list of these documents, each serving a unique purpose in the filing process.

  • Certificate of Formation: This document officially establishes a new entity in Texas. It includes details such as the entity's name, purpose, and registered agent. The certificate must be filed with the Secretary of State.
  • Application for Registration of a Foreign Entity: If a business formed outside Texas wishes to operate in the state, this application is required. It allows the foreign entity to register and conduct business legally in Texas.
  • Assumed Name Certificate: Also known as a "DBA" (Doing Business As), this document is used when a business wants to operate under a name different from its legal name. It must be filed in the county where the business is located.
  • Operating Agreement: While not required by law, this internal document outlines the management structure and operating procedures of a limited liability company (LLC). It helps clarify roles and responsibilities among members.
  • Bylaws: For corporations, bylaws are crucial as they govern the internal management of the corporation. They typically include rules regarding meetings, voting, and the roles of directors and officers.
  • Statement of Information: This document is often required to provide updated information about a business entity, such as its address and officers. Keeping this information current is essential for compliance.
  • Consent to Use of Similar Name: This is essentially what the Texas 509 form is about. It is a written agreement from the holder of an existing name, allowing another entity to use a similar name. This document is crucial for avoiding trademark issues.

Understanding these documents can help streamline the process of forming and registering a business in Texas. Each plays a vital role in ensuring that your business complies with state laws and operates smoothly. Always consider seeking professional advice if you have questions about specific requirements or processes.

Similar forms

The Texas 509 form is primarily used for granting consent to use a name that is similar to an existing name. Several other documents serve similar purposes in different contexts. Here are four documents that share similarities with the Texas 509 form:

  • Trademark Consent Agreement: This document is used when one party gives permission to another to use a trademark that is similar to their own. Like the Texas 509 form, it requires written consent and helps prevent legal disputes over name usage.
  • DBA Registration Form (Doing Business As): This form allows a business to operate under a name that is different from its legal name. Similar to the Texas 509, it must be filed with the appropriate authority and often requires the consent of existing name holders to ensure no conflicts arise.
  • Partnership Agreement: In partnerships, this document outlines the names under which the business will operate. It can include clauses about the use of similar names, akin to the consent provided in the Texas 509 form, ensuring all partners agree on the business identity.
  • Corporate Name Reservation Request: This request allows a business to reserve a specific name before officially forming the entity. Like the Texas 509 form, it helps ensure that the chosen name does not conflict with existing names and requires adherence to specific state regulations.

Dos and Don'ts

When filling out the Texas 509 form, there are several important considerations to keep in mind to ensure a smooth process. Below is a list of things you should and shouldn't do while completing this form.

  • Do ensure that the proposed name is not identical or deceptively similar to an existing name, even with consent.
  • Do provide the name of the entity or individual who holds the existing name accurately in Item 1.
  • Do have the form signed by someone authorized to act on behalf of the existing name holder.
  • Do submit the form together with the relevant filing instrument; do not send them separately.
  • Do check the Texas Administrative Code for rules regarding name similarity to avoid potential issues.
  • Don't forget that consent can be revoked after the form is filed; it is binding once submitted.
  • Don't sign the form if you are not authorized to do so, as this could lead to legal penalties.
  • Don't assume that consent allows for any use of the proposed name if it infringes on trademark rights.
  • Don't leave out any required information, as incomplete forms may be rejected.
  • Don't overlook the importance of consulting an attorney if you have questions about the consent process.

By following these guidelines, you can navigate the Texas 509 form more effectively and reduce the likelihood of complications during the filing process.

Misconceptions

Understanding the Texas 509 form is essential for anyone looking to navigate the complexities of business naming in Texas. Unfortunately, several misconceptions can lead to confusion. Here’s a detailed look at nine common misunderstandings about this form:

  • 1. The Texas 509 form guarantees name approval. Many believe that submitting this form ensures that the proposed name will be accepted. However, the form merely indicates consent; the Secretary of State still has the authority to reject names that are too similar or violate other regulations.
  • 2. Consent from the existing name holder is mandatory. Some think that consent is always required. While the form is used to obtain consent, the holder of the existing name is not obligated to provide it.
  • 3. The proposed name can be identical to the existing name. It’s a common belief that if consent is given, a proposed name can be the same as an existing name. In reality, the proposed name cannot be “the same as” or “deceptively similar to” the existing name, even with consent.
  • 4. The Secretary of State enforces trademark rights. Many individuals assume that the Secretary of State will protect trademark rights when a name is registered. However, the Secretary does not enforce these rights; that responsibility lies with the trademark holder.
  • 5. The consent can be withdrawn after submission. Some people think they can change their mind after submitting the form. Once the Secretary of State files the instrument based on the consent, it cannot be withdrawn.
  • 6. Any written format can be used for consent. While it is true that consent can be given in writing, many mistakenly believe that any informal note suffices. The Texas 509 form is specifically designed to meet statutory requirements, making it the preferred method.
  • 7. Filing the form incurs a fee. There’s a misconception that submitting the Texas 509 form requires a filing fee. In fact, there is no fee associated with this form when it is submitted with the relevant filing instrument.
  • 8. The form can be submitted separately from the filing instrument. Some individuals think they can file the Texas 509 form independently. It must be submitted together with the relevant filing instrument to be considered valid.
  • 9. Legal advice is unnecessary when using the form. Many people assume they can handle the process without consulting an attorney. However, the form explicitly states that it is not a substitute for legal advice, and consulting a lawyer can help clarify complex issues related to name similarity and trademark rights.

Being aware of these misconceptions can help individuals and businesses navigate the naming process in Texas more effectively. Always consider seeking professional legal advice for specific situations.

Key takeaways

When it comes to the Texas 509 form, understanding its purpose and proper usage is essential. Here are some key takeaways to keep in mind:

  • Consent Requirement: Before using a name that is similar to an existing one, you must obtain written consent from the holder of the existing name. This ensures that there is no confusion or legal issues down the line.
  • Submission Guidelines: Always submit the Texas 509 form along with the relevant filing instrument. If you submit them separately, the consent will not be considered by the secretary of state.
  • Permanent Consent: Once the secretary of state files your consent, it cannot be withdrawn. This means you should be confident in your decision before submitting the form.
  • Legal Considerations: Consent does not protect you from potential trademark violations. It’s wise to consult with a private attorney if you have questions about your rights or obligations.

By keeping these points in mind, you can navigate the process of using the Texas 509 form with greater ease and confidence.