How to File a DBA in California: A Step-by-Step Guide

Navigating the business world can be complex, especially when understanding the legal aspects of operating under a different company name. In California, a doing business as (DBA) or fictitious business name allows businesses to use an alternate name while maintaining legal compliance. This offers branding flexibility and enables companies to enter into contracts and open bank accounts under their chosen name.

This comprehensive guide will walk you through how to file a dba in California, discuss the differences between a dba and other business structures, and address common questions about California dbas. By the end of this guide, you'll be better equipped to make informed decisions for your business and its growth, specifically regarding how to file a dba in California.

Key takeaways

• California dba (fictitious business name) provides businesses with branding flexibility and legal compliance.
• Registering a California DBA involves checking name availability, filing paperwork, meeting publication requirements, renewing registration, and updating information as needed.
• A DBA does not provide the same protections or tax benefits as an LLC or corporation. Understanding associated legal implications is important before registering one.

Understanding California DBA (fictitious business name)

A DBA, or “doing business as," is an alternate name used by businesses in California and is also known as a fictitious business name. This allows businesses to operate under a different name than a legal business entity while maintaining legal compliance. Registering a DBA does not create a separate legal entity but merely provides a method for businesses to operate under a different name than their legal one.

To fully comprehend the California DBA concept, the following subsections will elaborate on its definition and significance.

Definition of a California DBA

In California, a DBA is an alternate name businesses use, including sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. This name is also known as a fictitious business name. Registering a DBA allows businesses to operate under a name different from their legal name, providing branding flexibility and ensuring legal compliance.

For-profit businesses must register their DBAs, while nonprofit corporations and unincorporated real estate investment trusts are exempt from this requirement. It is important to know the limitations when utilizing a dba in California. When establishing a contract, it is necessary to include both the business bank account and legal and DBA names, making the business's identity clear to the other party. Any agreement signed with only the DBA may not be upheld in a court of law.

Importance of a DBA in California

Registering a DBA in California allows businesses to operate under a different name while ensuring legal compliance. This allows businesses to enter into contracts, open separate bank accounts, and perform other essential tasks under their chosen name.

The benefits of registering a DBA in California include:

• Operating under a different name
• Exercising creative freedom when naming businesses
• Avoiding expensive costs and complicated process of forming LLCs or corporations

Businesses can enjoy increased credibility, professionalism, and privacy by registering a DBA.

When you need a DBA

Under California law, sole proprietors, partnerships, limited liability companies, and corporations must file a DBA if they plan to operate under a different name. A sole proprietor must file a DBA if he or she does not intend to use his or her surname or if the business name suggests other unnamed owners, e.g., "Smith & Sons."

• DBAs protect your privacy
• DBAs allow you creative freedom when choosing a business name
• A DBA is helpful for business owners who aren't ready to form an LLC or corporation
• DBAs allow you to operate under a name other than your legal name

Steps to register a California DBA

While filing a DBA in California might appear complex initially, it becomes transparent and manageable with appropriate guidance. Registering a DBA involves three essential steps: checking name availability, filing the necessary paperwork, and meeting publication requirements.

The following subsections will provide a detailed breakdown of each step, simplifying the process of registering your California DBA.

Checking name availability

Before registering a DBA, you need to check the availability of your preferred name. Here are some steps to follow:

1. Search state and local databases to find the required information.
2. Contact the county government for additional details.
3. Conduct a business name search through the Secretary of State's website.
4. Search for FBN filings on individual county websites.

The California Secretary of State offers enhanced online services for verifying the availability of a DBA. At bizfileOnline.sos.ca.gov, you can submit a name reservation online and renew it as necessary. You can also use the Secretary of State's website to search for existing business entities in California.

Filing a fictitious business name statement

Upon confirming the availability of your preferred DBA name, the subsequent step involves completing the appropriate DBA paperwork, which includes the fictitious business name statement form for your respective county or city. This form must be submitted with the necessary signatures to the city or county office itself.

It is recommended to contact the county clerk's office and ask if the form can be downloaded and printed. This will ensure that you have access to the most up-to-date version of the document. The form must be notarized by an officer, partner, member of the company, or the owner. The filing fees for registering a DBA in California vary by county, and additional costs may be incurred for publication requirements.

Meeting publication requirements

Upon submitting your fictitious business name statement, you must publish your DBA name in a local newspaper with general circulation within the county where your business is located. This publication must occur once a week for four consecutive weeks.

Once the publication is complete, you must obtain the county clerk's signature on the affidavit from the publication within 30 days of the last publication. If the magazine does not give testimony to the county clerk, there may be consequences, so staying on top of this requirement is essential.

Managing your California DBA compliance

Adhering to California DBA regulations is critical to your business's sustained success. This involves renewing your DBA registration and updating your information as needed.

The following subsections will cover renewing and updating information for your California DBA.

Renewing your DBA registration

Your California DBA registration is valid for five years. To renew your DBA, you must repeat the registration process, including submitting the applicable renewal form required by your particular city or county and paying any applicable renewal fees associated with that update.

It is important to note that republishing your DBA name is not necessary unless you renew more than 40 days after the FBN statement expires or if the information on the FBN statement has changed.

Updating your DBA information

If any business information changes, such as the business address or number of owners, it is necessary to update your whole DBA registration process. This involves refining and completing the entire process again.

Updating your DBA information is essential for maintaining legal compliance. In California, you must update your DBA within 90 days of any change in business information.

California DBA vs. other business structures

When considering whether to register a DBA or opt for another business structure, it is essential to understand the differences between a DBA and other structures, such as LLCs and corporations. While a DBA allows businesses to operate under a different name, it does not provide the same legal protections and tax benefits as other structures.

The following subsections will highlight the differences between DBAs and LLCs and between DBAs and corporations.

DBA vs. LLC

A DBA is an alternate business name that does not provide any legal protection for the business owner's assets. On the other hand, a limited liability company (LLC) offers legal protection for the business owner and personal assets in case of a lawsuit against the company. Also, LLCs' tax benefits may be unavailable to sole proprietors with a California DBA.

Forming an LLC in California, specifically in Los Angeles County, requires filing articles of organization with the Secretary of State's office and paying a filing fee by California law. This process involves more paperwork and ongoing costs than registering a DBA.

Registering a DBA in California is a more straightforward process that only requires a one-time fee and does not involve filing business formation documents.

DBA vs. corporation

While a DBA is a simpler and more affordable option for small businesses, it does not offer the robust legal protections and tax benefits that a corporation, a type of business entity, provides. Corporations are separate legal entities that shield personal assets from corporate debts, liabilities, and obligations. They also offer limited liability protection for the owners, so creditors and plaintiffs typically cannot reach their help.

Setting up a corporation in California requires filing articles of incorporation with the California Secretary of State and adhering to several legal requirements for corporations. In contrast, registering a DBA in California is a more straightforward process that only requires a one-time fee and does not involve filing business formation documents.

DBA vs. business license

A DBA serves a different purpose in your business than a business license. The sole purpose of a DBA is to allow you to operate your business under a separate name. A business license allows your legal business name to be used in specific jurisdictions in the industry. For example, you will need a DBA if you want to run a restaurant but don't want to operate your restaurant under your legal name. However, if you sell alcohol in your restaurant, you will need a liquor license. A liquor license is a type of business license that allows restaurants and bars to legally serve alcohol.

So while you may not need a DBA to start and run your business, you may need a business license to operate legitimate business in some industries. If you aren't sure what kind of business license, you may check with the California Secretary of State to find the necessary business licenses.

Common questions about California DBAs

To enhance your understanding of California DBAs, the following will address some commonly asked questions, including costs, multiple dbas, and legal implications.

How much does it cost to file a DBA in California?

Filing fees for California DBAs vary by county, with additional costs for publication requirements. Generally, the fees range from $10 to $100. It is advised to contact the local county clerk's office for exact prices.

Can I have multiple DBAs in California?

There is no limit to the number of DBAs you can have in California, but each name must be registered separately. The process of writing multiple DBAs involves the following:

1. Conducting a name search
2. Filing a fictitious business name statement with the county clerk or county recorder's office
3. Paying the requisite fees
4. Publishing the fictitious business name statement in a newspaper.

What are the legal implications of using a DBA?

A DBA allows businesses to operate under a different name but does not provide the same legal protections as an LLC or corporation. Working under a DBA or limited liability corporation name does not offer any legal protection for the business owner's assets. Understanding the legal implications before registering a DBA is necessary.

What a California DBA can do for you

A California DBA allows businesses to operate under a different name while maintaining legal compliance. Registering a DBA involves checking name availability, filing the necessary paperwork, and meeting publication requirements. While a DBA provides some small business owners with branding flexibility, it does not offer the same legal protections and tax benefits as other business structures, such as LLCs and corporations.

As you embark on your business journey in California, it is essential to consider the advantages and disadvantages of registering a DBA. By understanding the registration process, legal implications, and differences between a DBA and other business structures, you can make informed decisions supporting your business's growth and success.

Frequently asked questions

How do I register as a DBA in California?

To register as a DBA in California, you need to file a fictitious business name (FBN) statement with the county clerk's office where your business is located. Out-of-state companies must file their FBN statement in Sacramento County. Additionally, you must perform a California DBA search, fill out the necessary forms, and publish information about the DBA in the local newspaper.

How much does it cost to file a DBA in California?

Depending on the county, filing a DBA in California typically costs between $10 and $100. There is no filing fee at the state level.

Are you required to file a DBA in California?

Under California law, companies must file a DBA if they wish to do business under any name other than the owner's legal last name. This applies to sole proprietors, partnerships, limited liability companies, and corporations.

Is DBA the same as a business license in California?

A DBA (doing business as) is a fictitious name filed with the county clerk for legal use on documents such as contracts and invoices. In contrast, a business license is issued by the city where you are located and providing services. Depending on the county, a DBA may or may not be required, but a business license and a DBA are necessary to operate a business in California legally.

Can I have multiple DBAs in California?

Yes, you can have multiple DBAs in California. However, each name must be registered separately by conducting a name search, filing a fictitious business name statement, paying the requisite fees, and publishing the fictitious business name statement in a newspaper.