A relatively straightforward process, filing for a fictitious business name in San Diego, does require you to understand some specific details. Here, we will go over the entire process of obtaining a fictitious business name, which is also know as a DBA. Let’s begin with the basics and go from there as you begin your journey to filing a fictitious business name or DBA in San Diego, CA. If you need help with a business name, please read our article How to Come Up with a Business Name or contact our small business lawyer in San Diego for assistance.
Brad Nakase, Attorney
1. What Does a Fictitious Business Name Mean?
A fictitious Business Name can be anything that you do business under. For example, a fictitious business name (known as a DBA) can be: Jane Doe Taco Shop, John’s Breakfast Lounge, or San Diego Fried Chicken. Legally, each company must have a name, not only in California but across the entire country. As we all know, business names differ based on the type and structure of the company. A sole proprietorship might operate using the name of the business owner, while an LLC (a corporation with limited liability) may operate using the name agreed upon under the certificate of incorporation. Sometimes the name of a business reflects the name or names of the owners, and sometimes it is reflective of the industry. Whatever the name of your company, it is an important aspect of it, and that brings us to the definition of a DBA.
2. Definition of DBA
DBA simply means “doing business as.” The opposite of using a legal name, a DBA is a made-up or fictitious name under which you decide to operate your business. The word DBA and “fictitious business name” are synonymous and can be use interchangeably.
3. Why Some Businesses Choose a Fictitious Business Name?
Why would you decide on a fictitious business name? There are multiple reasons. Perhaps your legal name is confusing or does not relate to your business practice. Maybe the legal name you would otherwise use is even misleading and could turn prospective customers away from your business. Maybe there is a name that you believe could help your business thrive. For example, instead of “Smith and White LLC,” your lawnmower corporation could be called “Greener Grass, LLC,” providing key insight into the product you sell.
Or, perhaps you simply think it is time for a different name, but you have no desire to change your documents of registration or articles of incorporation. For example, a partnership or sole proprietorship might operate under the legal name of the business owner or owners. A corporation, limited liability company (LLC), or another type of business entity might operate under the name defined in the articles of incorporation or articles of organization.
Whatever the reason, if you begin doing business under a name that is unique from your company’s lawful name, this is known as operating under a fictitious business name. Other terms that you may hear are “assumed name” or “fictitious name.”
4. Multiple DBA Names
Did you know that you can run your business under multiple DBA names, as many as you would like? However, it is important to remember that each name needs to be registered in the county in which you plan to operate. So, each name would be registered in the county of San Diego. This step is a requirement because the public (and your customers) have a lawful right to know if your business is being conducted under a name that is different from its normal legal name.
Tip: When you register for a DBA, you are registering your new brand. Your distinctive brand will become the identity of your entire company, and this will make your business memorable. If people remember your business and your brand, they will frequent it more.
5. Is filing for a DBA necessary in San Diego County?
Absolutely. California’s state laws require that you file your DBA business name in the county where you do business. So, if your principal place of the industry is in San Diego, you will need to adhere to these laws.
It is possible to file your DBA by mail or in person. There are also options online now, and you can file with the LA County Clerk via the web at the fictitious names portal. Before you file, you will want to check on the availability of your name, too.
If you lack a physical business location but still plan to run your business in California, there is also a solution. You can file the fictitious name of your business in Sacramento County with the clerk’s office.
6. What are the main steps involved in getting a DBA in San Diego?
First, you are going to want to run some searches in order to check on name availability. By using the corporate database of names in California, you will be able to see if the name you have chosen for the DBA application is readily available.
Tip: It is important to avoid the use of a DBA name that is confusing or deceptive, downright fraudulent, or too closely linked to other names in the business world. As a business owner, you also want to be wary of being exposed to any sort of legal liability in California. How could this happen? If your chosen DBA name carries any sort of implication that you may be running an illegal business, this could spell trouble. Be careful, be responsible, and choose your DBA name carefully.
Once you are ready, the documents and forms can be found online with the office of the county clerk: San Diego Fictitious Business Name.
7. Are there limits to what a DBA can do for your business?
The short answer is yes. Just because you have registered your business as a DBA, this does not mean that you are excused from creating a legal entity of the business. Further, if you do not form a lawful business entity but register a DBA in San Diego, it is assumed that you are operating your entity in the form of a proprietorship with only one owner.
There are advantages and disadvantages to all business structures, and this is true with sole proprietorships as well. Yes, many businesses are run in this manner, but with a sole proprietorship, you will not receive protection—in terms of limited liability—from legal action or lawsuits. You will also be personally responsible for your business debts in this structure; these are things to be aware of.
However, if your business is a corporation, you will find that you have some essential protections under limited liability, and you will also be insulated from liabilities and debts accrued by your business. This is also true for LLPs and LPs.
8. When preparing to file for a DBA in San Diego, what else needs to be considered?
Make sure that:
- Your company remains in good standing with the state and/or county (you can obtain a certificate showing this)
- Figure out the correct way to pay the fees to San Diego County, and what the county accepts as payment
- Ensure that there are no misleading terms in your DBA name. For example, if you do not own an LLC, your company cannot be called “Best Bicycle Enterprises LLC.”
- In California, you will need to publish a “notification” by posting an ad in a local newspaper. This is relatively simple: contact a newspaper company, tell them you have filed a Fictitious Business Name and need to publish it, and also provide them with the filing information.
- Get an EIN number for your business.
- Before starting up, double-check that you have registered your DBA name in San Diego County.
- Remember that if the information related to your business changes, you will need to change the DBA filing information, too.
9. Will filing for a California DBA change my tax structure?
Remember: the taxes you pay for your business rely on the structure of your business. For example, an LLC will pay taxes in a different manner than a proprietorship. Therefore, there is no link between your DBA and the way you are taxed.
Your tax structure will change if you decide to incorporate. If you want to incorporate a business, please contact our corporate attorneys in California. You many also learn to incorporate a small business in California.
10. What if I would like to file for a DBA in a different state?
While this article is dedicated to San Diego, the DBA process differs from state to state and county to county. However, information about each specific state can be readily found online, and in most states, the process is both similar to the steps outlined here and relatively simple. In most states, you will need to file with the county or state itself after checking to see if your DBA name is available. While many states now allow you to register online, you also may have to contact the proper state or county offices, see what they say, and go from there.
11. What if I have more questions?
We are happy to consult with you and answer any and all questions you have about securing your DBA name in San Diego and getting your business up and running. Our Business Lawyers & Corporate Attorneys in California are here to assist you, and Nakase Wade has a record of excellence in business and corporate law.