How to Do a Business Entity Search in Texas

Texas is one of the most business-friendly states in the country! Many businesses are moving from California and other parts of the country to take advantage of Texas’ business-friendly tax laws and regulations. If you are thinking about starting a business in Texas or moving your company to Texas, you’ll want to make sure that you don’t have any issues with existing businesses that may have the same or similar names that could cause legal issues for your business in the future.

When starting a business, conducting a business entity search is essential for compliance. In Texas, doing a business entity search will help you confirm the availability of your business name and access public records for registered businesses. Navigating the Secretary of State’s website for tools and resources will make the process smoother so you can find the information you need and know how to pivot your business and business name accordingly. We will walk through how to perform a business entity search and utilize available resources to gather information you need. 

What Is a Business Entity?

According to Indeed, a business entity is “an organizational structure that determines the way the government taxes a business and how it assumes liability. Often, a person or group of people creates a business entity to manage the risks that an individual assumes while running a company.” Regular types of business entities include corporations, S corporations, sole proprietorships, and partnerships.

When Should you Perform a Business Entity Search in Texas?

If you are looking to start a business or you are moving your business into the state of Texas from another state, you’ll want to perform a business entity search in the state of Texas. This is to make sure that another business isn’t already operating under a similarly named entity in the state which could cause legal issues for you in the future.

You can also use a business entity search to learn some basic information about your competitors. This can be helpful if you need to profile them, figure out what areas they operate out of, and how long they’ve been in business.

What Are the Steps to Perform a Business Entity Search in the State of Texas?

STEP 1: The first step to performing a business entity search in the state of Texas is to go to the Texas State Department SOSDirect tool. You’ll need to create an account within the SOSDirect tool to access any information, but once you’ve completed that process you’ll be able to start your business entity search.

STEP 2: Pay the “Per Search” Fee. The state of Texas uses these fees to operate the SOSDirect service and keep it up to date with the latest information. Every search you make costs $1 “which supports the ongoing operations and enhancements of SOSDirect.”

STEP 3: Request the search. Once you’re ready to pay the search fee with your account, you’ll want to use either the name of the business entity, the file number, or the registered agent associated with the business you’re looking for to perform the search.

STEP 4: Once you’ve found the business entity that you’re looking for. You’ll be able to look at the details related to that entity. Information about each business may vary, but this will usually be the best source of initial public information you have on a business, unless that business is public in which case you should be able to look through their public financial statements and filings.

What Is a Registered Agent?

A registered agent is the person or company a business names to receive important mail and official documents on its behalf. This includes things like state notices, tax forms, and legal paperwork. Every formal business is legally required to have one in the state of Texas.

The registered agent acts as the go-between or the middle man between the business entity and the state. In some cases, it can be beneficial to designate a third-party to act as the registered agent, especially if they don’t want sensitive documents like legal notices showing up at their storefront or public office. But if you run a small business, like a single-member LLC, or just prefer to keep things in-house, you can name yourself or a trusted employee to handle those documents directly.

Why Should You Use a Third-Party Registered Agent?

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Every business is required to designate a registered agent. However, the name and address you provide will become part of publicly available state records. That can create privacy concerns, especially for home-based businesses or anyone who doesn’t want legal notices or official correspondence showing up at their main office during work hours.

When you use a third-party registered agent service like MyCorporation, our contact information appears in public databases instead of yours. It’s a simple way to protect your privacy and maintain a more professional image.

Setting Up Your Business

There are plenty of ways to start a business. You can try to figure it out on your own, spend a fortune hiring an accountant, or let MyCorporation handle the entire process for a fraction of the cost. We take the guesswork out of forming an LLC or Corporation in Texas by completing the paperwork for you and walking you through each step. It’s the easiest way to get your business off the ground, just ask some of our happy customers:

“Glad I found MyCorporation! They are a great document filing company for LLC’s. They have excellent customer service, and everyone is extremely knowledgeable. They always follow-up with a phone call. Service was fast, accurate and affordable. I’d highly recommend if you are looking to form a business.”

–Beth McElhenny

“I love this company. They know exactly what they’re doing and how to help your business become the best and most efficient. Better yet, they deliver exceptional service at a great price! Also, Kellie is very helpful at the office. She’s usually on the phones so make sure to ask for her!”

–Andrea Douglas

We give you one-on-one support to make sure that you get timely responses to your questions, requests, and filings so you can focus on your business!

Wrapping Up

Today we covered what a business entity is, when and why you should perform a business entity search, the steps and tools you need to perform a business entity search in the state of Texas, what a registered agent is, when you should use a registered agent, and how we can help you start your business. Make sure to check out the rest of the articles on our blog and our small business learning center for more great resources and information on how to run your business.