Submitted by UCS on June 7, 2018

TX Distinguishable Name

On June 1, 2018, Texas implemented a less restrictive standard for determining whether a business entity’s name will be available to domestic and registered foreign business entities. This change affects the following entity types:

• Corporations (Domestic & Foreign)
• Limited Partnerships
• Limited Liability Companies
• Professional Associations
• Cooperatives
• Real Estate Investment Trusts

Whereas prior to implementation, the state could reject a name because it was ‘deceptively similar’, as of June 1, 2018, a name an entity is forming or registering under must be “distinguishable in the records” of the secretary of state from the name of another domestic or foreign entity, fictitious, reserved or registered name. Reserved and registered names and the names of reinstating entities are subject to this same new standard.

For more detailed information on the changes that have taken place, click on the following link
https://www.sos.texas.gov/texreg/pdf/backview/0612/0612adop.pdf

These changes are considered significant because entities already registered with the Texas Secretary of State may consider amending their formation or registration filings to obtain a name that was previously unavailable under existing law. This may include a foreign entity being able to use the name it was formed under in its domestic state.

Contact a UCS CSR for any follow-up questions you might have.