Introduction
Any name your company uses that isn’t its official business name is a California DBA. A DBA is known as a fictitious business name (FBN) under California state law. A California DBA can be used by corporations, LLCs, general partnerships, and sole proprietors in California to build a brand, raise brand awareness, and preserve their company’s reputation.
A fictitious name statement must be filed in the county wherein your enterprise is located to be registered as a DBA in California. Prices & requirements may differ because each county maintains its own DBA registration procedure. We’ll demonstrate the process for you.
Fictitious business name or DBA
A California DBA can be used in place of your company’s official name. It is much like a nickname. For instance, you can use the much smaller DBA, such as “Jimmy Bistro,” if you are the owner of Jimmy and De Luca’s Italian Bistro Restaurant & Lounge LLC. “Doing business as” is what DBA stands for. DBAs are sometimes known as assumed names or trade names in some states.
A DBA can be used by any kind of California Company. Only for-profit companies must register. State law states that nonprofit entities, including educational foundations, churches, and charity organizations, are exempt from registering any DBAs they utilize. Additionally, unregistered property-based investment trusts are exempt from DBA registration.
What makes California’s DBA registration unique?
DBA registration is only necessary for for-profit companies.
Unlike a lot of states in which DBAs are recorded with the state, California requires DBAs to be filed directly at the county level. The costs associated with getting a DBA in California can vary depending on the county.
Before establishing a DBA, you may begin using it; however, to continue using the name lawfully, you must submit a fictitious name statement to the county clerk no later than 40 days. Many small business owners start the process of getting a DBA in California after deciding to market their products.
California has a publishing requirement, which means that as a component of the registration procedure, you have to post a notice in your local newspaper that you are utilizing a DBA.
Related: LLC vs DBA: Key Differences for Business Owners
Why Sign Up for a California DBA?
There are several reasons to register as a California DBA in addition to the legal necessity, including:
1. You are a sole proprietor in California
One-person firms that are not state-registered are known as sole proprietorships. Under a sole proprietorship, the firm’s legal name is the name of the proprietor since there is no legal distinction between the business and its owner. Any name you use as a sole proprietor in California that excludes your last name is required to be filed as a fictitious name.
2. To promote your company
If your company is changing its direction or simply wants a catchier name, DBAs can be important branding tools. You may establish and preserve your company’s reputation and brand by operating under a DBA. Typical applications for a DBA include:
- On social media platforms and webpages
- On business cards, signs, and other promotional items
- In ads and commercials
- Regarding merchandise
- To create a bank account for a business
- To send and receive money
3. To grow your company
To save a significant amount of money when launching a new business venture, you may utilize a California DBA rather than creating a new or extra entity (like an LLC).
A DBA is valid for five years and often costs under $100 to file. In the meantime, a limited liability company franchise tax of a minimum of $800 must be paid annually by all California LLCs. Although the franchise tax is currently eliminated for the initial year for all LLCs established prior to January 1, 2024, the total amount of the charge ($3,200 over 4 years, minimum) is still significantly more than the cost of establishing a fictitious company name for the same five-year period.
Registering a trademark or fictitious business name in California does not ensure that it won’t be used by another company. To strengthen your rights under the law to your DBA name, you can register for a federal trademark.
How to Obtain a Fictitious Company Name in California
You must submit an FBN (fictitious business name) statement to the office of the county clerk in the county where your company is situated to be registered as a California DBA. If an out-of-state business wants to operate in California under a fictitious name, it must file its FBN statements with Sacramento County. The first thing to know about getting a DBA in California is that it does not create a separate legal entity.
For detailed information, get in touch with your county clerk’s office, as registration standards and costs differ from county to county. Usually, this ranges from $10 to $50. You must also issue a notice in a local newspaper stating that your company is utilizing a fictitious business name. This is a summary of the procedure.
1. Check to See If the DBA Name You Want Is Available
You must first determine whether your preferred DBA name is accessible. You are not permitted to use a name that is currently trademarked by a different organization, or that is already registered as an authorized business name by a business entity established with the state.
To determine whether your preferred name is accessible in California, utilize the following:
- Use the California Online Business Search to look up the names of all companies, limited partnerships, and LLCs that are registered.
- Request business filings from limited liability partnerships (LLPs) or general partnerships via the Business Entities Records Order Format
- US Patent & Trademark Office TESS (Trademark Electronic Search System)
- California Trademark Search
You must get in touch with your county clerk’s office to prevent using a name that is identical to or similar to some other DBA in that county. Some offices will have online databases of fictitious business names. The Los Angeles County Clerk, for instance, has a virtual Fictitious Business Name Search containing data dating back to April 2011. Other counties, however, could demand that you contact or come in person to look at records pertaining to fictitious business names.
2. Conform to the California DBA Naming Regulations
A California DBA must adhere to California’s naming regulations for fictitious business names, in addition to being accessible.
According to CA BPC 17910.5, business entity designations like “LLC” or “Corp” cannot be included in fictitious business names if they don’t truly relate to the company. For instance, if you are a sole proprietor, you are not permitted to use the DBA “Smith Motor Garage LLC.” However, you can just use “Smith Motor Garage.”
3. Fill out the statement for your fictitious name
In accordance with the county in which you register, the specific registration procedure for a California DBA differs.
A fictitious business name statement document, such as the San Bernardino County Fictitious Business Name Statement, is typically given to companies by county clerk offices.
You can create your personal fictitious name statement utilizing the guidelines outlined in CA BPC 17913(b) if your county does not provide one.
- Proposed fictitious company name
- Address of the main business location
- Name & address of the business owner (for all owners)
- Classification of businesses. This includes corporations, LLCs, partnerships, & individual owners
- The date on which the company began (or will begin) operating under the false name
Recall that you have 40 days from the day your company began utilizing its DBA to file a fictitious business name statement.
You can run into extra standards in some counties. For instance, if you file by mail in Mariposa County, you have to attach a Fictitious Business Statement and an Affidavit of Identification. Make sure you meet all filing requirements by contacting the county clerk’s office. According to California state laws, applicants from registered firms may also need to provide a Statement of Good Standing.
4. Pay the filing fee and submit the statement
Some jurisdictions, including Los Angeles County’s Business Filing & Registration System, also allow FBN statements to be filed online. Your statement must be delivered in person or mailed in other counties, though. For instance, you can schedule an in-person filing appointment or send in your statement in Fresno County.
Each county has a different filing fee, which also depends on how many persons are regarded as business owners. In Colusa County, the minimum charge is 10 dollars + two dollars for every additional proprietor or fictitious name. In San Francisco, on the other hand, the standard charge is $60 plus an additional $15 for each additional owner or fictitious name.
5. Post a Notice of the Fictitious Name
According to California law, business owners who register a fictitious business name must publish a declaration in the local newspaper in the county where the registration is done. State law mandates that the statement be put out once a week for 4 consecutive weeks, no later than 45 days following your DBA being submitted to the county. But be aware that some counties, including Sacramento, mandate publishing within 30 days of submitting your FBN statement.
Remember that publication prices vary. In Orange County, publishing can cost as low as $25, but in Kings County, it can cost as much as $194.
A statement of publication, also known as proof of publication, needs to be submitted to your county clerk upon publication. After that, you will receive official confirmation from the clerk that the fictitious business name is legitimate and operational. The process of getting a DBA in California may seem complicated at first. It is not.
Renewing a Fictitious Name in California
California DBAs have to be renewed by going through the registration process again; all documents and payments are the same. DBAs expire after five years. However, unless you’re renewing more than forty days after the FBN statement lapsed or some of the material on your FBN statement has been modified, the publication obligation is not required for renewals.
Furthermore, if any of the details in your fictitious company name declaration change, you must refile. For instance, you have to reapply to amend this information if your company’s location or number of members changes. Re-filings for modifications follow the same procedure and are subject to the same registration fees as renewal filings.
Is it possible to cancel a DBA?
Yes. Abandonment is the term used to cancel a California DBA. You must submit a declaration of abandonment of usage of a fictitious business name to the county clerk’s office if you want to cancel your DBA before it expires. You could also have to pay a charge, depending on the county you live in.
Similar to the fictitious company name statement, certain counties offer forms for abandonment, such as the $31 Fictitious Company Name Statement of Abandonment from Sonoma County. In other counties, on the other hand, you might have to write your own statement in accordance with CA BPC 17922. You must incorporate:
- The fictitious company name that is getting dropped
- The physical address of the main place of business, the filing number, the date, and the county in which the fake business name was registered
- Name and address of business owner (for all owners)
Starting a Business vs. Filing a DBA
Sometimes, registering a DBA is mistaken for launching a business. A DBA is actually just a different company name, similar to an alias. Your business structure remains unchanged when you register a fictitious business name. You remain a California sole proprietor even if you obtain a DBA. This applies to all kinds of enterprises.
It should be mentioned that there are certain things you cannot perform under a DBA since filing one does not establish a distinct business entity. For instance, to be sure that the person you are signing a contract with is aware of your company’s identity, you must provide both your official business name & your DBA name. A contract that is just signed with your DBA may not be enforceable in court. You also have to pay taxes using the legal name of your company.
In California, there are two methods available to launch a business:
- Register your company with the state. You must submit formation documents and pay a filing fee to the state to establish a business entity, such as an LLC or corporation.
- Make a sale. Selling a good or service is all it takes to establish an unregistered business, such as a general partnership or sole proprietorship. (However, depending on the field of work, you might still need to get state or municipal company licenses.)
LLC vs. DBA
A California limited liability company is a commercial entity, but a California DBA is merely a name. Because LLCs are legally distinct from their owners, owners are shielded from liability. This means that owners’ personal assets are usually regarded as off-limits to creditors in the event that an LLC faces legal action or owes money.
Whether or not you choose to adopt a DBA, you are still protected as an LLC owner. A DBA won’t safeguard your assets if you are a sole proprietor. Therefore, an LLC is the best option if you desire liability protection. It is always possible to register one or more DBAs with your LLC.
Does a DBA protect my private information from being made public?
Regretfully, no. You will need to include your company address and name on DBA papers because the purpose of DBA registration is to assist customers in determining with whom they are doing regular business. This can contain your home address if you work from home as a sole entrepreneur or as a participant in a general partnership.
Hiring a California-registered agent and creating an LLC are the easiest ways to minimize the level of personal information you disclose to the public. To protect your privacy, they will list our information on state records whenever permitted rather than your own.
FAQs
1. How much time does it require to register a fictitious business name in California?
Depending on the length of time you wait to complete your publication requirement, the registration process may take a maximum of two months. You can anticipate a minimum of five weeks, accounting for transit times, as you have to post notification for four weeks. However, you have up to 40 days before beginning the registration process to begin utilizing your DBA.
2. What is the cost of obtaining a DBA in California?
Each of California’s 58 counties has different DBA filing fees. Usually, you’ll have to pay a fixed charge plus a smaller sum for every additional owner. Furthermore, you will have to pay to print a notice informing the public that your company is employing a fictitious business name. The cost of printing and submitting a notice varies greatly, from under $20 to over $180.
3. Is it necessary to register a DBA in California?
Indeed. Any California DBA used by businesses must be registered. Nonprofit organizations and unincorporated real estate trusts are an exception, as they are exempt from the requirement to file their DBAs.
4. Does each county where I conduct business require me to register as a California DBA?
No, state law only requires you to register the California DBA with the county wherein your company’s address is situated, or your “main location of business.”
5. How many fictitious company names am I allowed to have?
The number of DBAs in your company that you may register is unlimited, but remember that you must finish the registration procedure for each name. (You can lower the cost by registering more than one DBA at once.)
6. Does my DBA require its own bank account?
Although it’s not necessary, it might be a wise choice. You don’t need to keep the DBA finances distinct because a DBA isn’t a distinct legal entity like a limited liability company or corporation. You can open a different bank account if you’d like, though, as this can be useful for bookkeeping.
7. Does my DBA require a different EIN?
No. You don’t have to obtain a new EIN since a DBA is merely a name, and you’re not launching a new company. EINs are required for corporations, businesses with workers, and multi-member LLCs; however, your DBA does not require a separate one.
8. What is the duration of DBA registration in California?
The registration period for fictitious business names is five years. After that, to maintain the name’s validity, you must refile a fresh fictitious name statement.
9. Does changing my business information require me to update my DBA?
Yes. You will have to reapply if any of the details on the fictitious business name declaration change. This will require you to go through the entire procedure again, particularly the publication requirement.
10. Can my DBA registration in California be cancelled?
Yes. You can use a procedure known as abandonment to cancel your registration if you so choose. For additional information, get in touch with your county clerk’s office. Each county has its own abandonment procedure and costs.
11. Can I use my DBA to sign contracts?
Both yes and no. Signing an agreement with just your DBA is not advised because a DBA is not a business (your contract wouldn’t stand in court). To ensure that everybody you sign an agreement with is aware of your company’s identity, you should provide your DBA in addition to your official business name.
12. Can I purchase a domain name using my DBA?
That varies. While some domain registrars permit businesses to buy domain names with a DBA, others do not. You must identify a registrar who will permit you to purchase a specific domain name under your DBA if you are worried about utilizing your official business name.
13. What is the legal name of my company?
The name that displays on your company’s official documents—such as state and tax filings—is your official business name.
- The name on a company’s formation paperwork, including its corporate identifier, is its legal name for official business entities such as corporations, LLCs, and NGOs.
- The legal name of a business owned by a sole proprietor is the proprietor’s legal name.
- In general partnerships, the last names of the partners or the name the partnership chose for itself in a formal partnership agreement serve as the firm’s legal name.