FAILURE TO FILE AN ASSUMED NAME CERTIFICATE
that you have read this information and learned that the Assumed Name
Certificate does not grant you any rights to the business name you’ve
selected you might be inclined to save your money and forego filing the
Certificate. But this decision could have serious consequences. While a
business that fails to file an Assumed Name Certificate remains subject to
civil actions (lawsuits) brought against the business, the law does not
allow the business to bring an action against others. And if a suit if filed
against the business, the court can require the owners of the business to
reimburse the party bringing the lawsuit for the costs, including attorney’s
fees, incurred in locating the business owners and bringing them before the
if the limitations on the business’ right to bring a civil action against
someone who, for instance, breaches a contract with the business, and the
penalty of having to pay the expenses of someone who sues your business which
is operated without an Assumed Name Certificate are not enough, there is also
the potential for a two thousand and no/100 dollars ($2000.00) fine for
conducting a business under an assumed name without filing a Certificate when
the business is required to do so. Texas Business & Commerce Code §36.26.
This is just a small
amount of the information which you are presumed by law to know. The old adage
“Ignorance of the law is no excuse” still applies. In the new global
economy and this age of International Trade Names, Internet web addresses and
the like you are responsible for ensuring your compliance with all applicable
state and Federal laws. Many small business owners find the task overwhelming
and decide to hire an attorney to assist them through the legal maze before
any problems come up. Others wait until an issue arises which requires
expensive, immediate attention before frantically searching for an attorney to
help them. Only you and your attorney can decide which choice is right for you
and your business. I wish you success in all your endeavors.
information is a general overview of the law regarding Assumed Names in Texas.
It is not legal advice and is no substitute for consultation with an attorney
regarding your specific legal matter. Do not rely on this document or the
information contained herein in making decisions regarding legal matters.
2000 Michael Hrabal, P.C. All Rights Reserved.