Texas Senate Bill SB1973

Texas 2015 - 84th Regular

Caption

Relating to the names of certain businesses.

Impact

The legislative changes introduced by SB1973 aim to enhance clarity and transparency in business operations within Texas. By requiring names to be distinguishable from existing businesses and strictly regulating the conditions under which similar names can be used, the bill seeks to prevent deceptive practices. As a result, businesses that adopt assumed names will face clearer guidelines, potentially reducing legal disputes related to name similarities.

Summary

SB1973 proposes amendments to the Texas Business Organizations Code concerning the naming of businesses that wish to operate under assumed names. The bill establishes that a domestic or foreign entity may transact business under an assumed name if they file an assumed name certificate. This requirement is intended to regulate how businesses can utilize names, ensuring they do not mislead consumers or create confusion in the marketplace about the identity of the business being represented.

Contention

Notable points of contention surrounding SB1973 involve the potential impact on smaller businesses and startups that may struggle to find unique names. Critics argue that the stringent regulations could stifle innovation and limit the choices available for new businesses. Proponents, however, emphasize that clear guidelines will protect consumers from confusion and help preserve the integrity of brand identities in the marketplace.