Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What is NOT required for corporations regarding a business name?

1. To file a Certificate of business name

2. To create a website

3. To register the business with state authorities

4. To advertise under their name

The correct answer is: To file a Certificate of business name

Filing a Certificate of Business Name, commonly referred to as a "Doing Business As" (DBA) certificate, is indeed a requirement for certain types of businesses, especially sole proprietorships or partnerships, but it is not a general requirement for corporations. Corporations typically register their name at the time they file their incorporation documents with the state, which serves as their official business name. Therefore, they do not need to file an additional Certificate of Business Name unless they plan to operate under a name that is different from their registered corporate name. Creating a website can be beneficial for a business but is not a regulatory requirement. Similarly, registering the business with state authorities is indeed a necessary step for forming a corporation, as this ensures compliance with legal and administrative requirements. Advertising under the business name is a common practice that helps in establishing brand identity and does not constitute a legal requirement; however, it is essential for marketing purposes. Thus, the obligation to file a Certificate of Business Name is not applicable to corporations in the same way it is to other business entities, highlighting why this option stands out as not being a requirement.