Introduction
You can manage a small business under a different name from the company or individual operating it in Los Angeles County. This is a “Doing Business As” (DBA), fictional name, or trade name. In California, a DBA is known as a “fictitious business name” (FBN). In this article, DBA and FBN are used interchangeably.
In order to operate a DBA, any California-based company must sign up in the particular county where it has its main office. Los Angeles County companies fall under this category. In Los Angeles County, DBA/FBN registrations are handled by the county clerk.
Although it is generally easy to file a DBA with the registrar-recorder in Los Angeles County, the procedure differs based on a number of criteria. You can file a DBA name in Los Angeles County by following the five steps listed below.
Why should you acquire a DBA?
In California, obtaining a DBA is very easy and inexpensive. In fact, the majority of the procedure can be finished online or by mail. All the entrepreneur needs to do is submit documentation in person. Without the hassle of forming a company, LLC, or other structure, it is possible to create a distinct identity (but not an entity).
With the aim of creating a bank account & make profits in the company’s name, sole proprietors usually need to obtain a DBA. Obtaining a DBA allows you to create numerous businesses without having to create an entirely new corporation. You can create a parent company and utilize a false business name for the succeeding enterprises that fall under its purview if you wish to have many websites or restaurants. In the context of taxes and documentation, this represents a fantastic scenario that would simplify running several firms.
It should be mentioned that obtaining a DBA doesn’t alter the tax implications for a firm. Additionally, using a fictitious business name might encourage legal compliance if an individual manages a corporation or an LLC. A court of law may rule that a contract made by a business owner under an alternate name other than the authorized, operational name is void or unenforceable.
Obtaining a DBA in California is usually a wise choice, regardless of whether you want to work for yourself or eventually establish a large company. Even if you are beginning as a sole proprietorship, you can create a business with your ideal name as long as it is available.
Five Steps for Los Angeles DBA Registration
1. Decide Whether a DBA Is Suitable for Your Los Angeles Company
Any name a company employs that differs from its official name is a DBA. DBAs are available for sole proprietorships and incorporated enterprises (corporations, limited liability companies).
A DBA isn’t an organization. Taxes, licenses for businesses, permits for businesses, & insurance fall under the purview of the DBA’s actual legal company. To open a bank account under the DBA name, you use the tax identification number of the underpinning California company legal entity.
Let’s say you wish to employ a fictional name in Los Angeles (or anyplace in the state), but your primary place of operation is outside of California. The Sacramento County Clerk-Recorder is where you have to register in such a scenario.
In Los Angeles County, nonprofits are not required to file a DBA or FBN.
You can register your business name in every other California county in which you conduct business after you file a DBA or FBN in its home county.
A DBA can be used for the following tasks and more:
- Promotion
- Verifying the existence of the business
- Creating a bank account for a business
- Taking credit cards as a retailer
- Making a corporate name simpler
- Launching a new line of products
- Using a different name than your own
One drawback of a DBA is that, unlike an LLC, it does not provide the same level of protection for the business owner.
Whether or not to use a fictional name in place of the company’s legal name is up to you.
A DBA is usually employed in partnerships or sole proprietorships wherein the business name is different from the complete legal name of the individual or individuals running the company. This is valid even if the name, like “Bob’s Greenhouse,” is a component of the company. If you would like, you may register your entire legal name as the company name concurrently. The Los Angeles County Clerk’s office should be contacted with any inquiries regarding this procedure.
If the company registering is a limited liability company (LLC) or a corporation, the procedure is a little different. Let’s say the name of the LLC, or corporation, is already registered. In that scenario, there is no need to register that title as a DBA a second time. However, if the LLC or corporation wants to operate under a different name, a DBA registration is necessary.
An LA County legal body may have an unlimited number of DBAs. However, there are a number of restrictions regarding how a DBA may refer to itself, as mentioned in the next section.
2. Verify the Name of Your Company with LA County
Once you’ve chosen a name, do the required actions to make it lawfully yours before registering it as an LA County DBA/FBN.
To make sure that nobody else in the jurisdiction is using that name, first look for a fictitious name on the Los Angeles County Clerk’s website. You are unable to use the given name if they are using it.
Be advised that with an LA County DBA filing, you are not permitted to utilize specific phrases or designations. You are unable to:
- Choose a DBA name that misrepresents the type of business.
- Unless the company has a banking or insurance license, use a name related to those industries.
- Unless you have a legal license, use an expert name like “attorney at law” or “doctor.”
- Unless one of the businesses included in the registration application is a corporation, use any sign that the DBA represents a corporation.
Register your name as fictitious if it is a distinctive LA County name that is not in use.
3. Take Ownership of That Name
To prevent others from using your legal business name, you can own it. However, this name needs to be distinct.
First and foremost, you have to make sure that nobody else is able to utilize it online or in business. Ensure that you are able to obtain the domain name of the website and social media accounts. If yes, make Instagram and Facebook accounts using your DBA name. Next, buy the domain name from a third-party website such as Squarespace or GoDaddy.
The US Patent & Trademark Office (USPTO) allows you to federally file a DBA name if you plan to work in states other than California.
Register your federal service mark or trademark with California as soon as you receive it. Additionally, you do not need to file for a federal trademark to register a service mark or trademark with the state of California. However, its protection is limited to the state.
Your small business now owns that name.
4. Give the LA County Clerk your fictitious company name
A fictitious business name declaration must be submitted to the Los Angeles County Clerk Fictitious Name Portal to be able to document any fictitious name utilized in a regular business in Los Angeles County. The filing fee is $26. The internet portal can be used with the help of a video tutorial provided by the LA County Clerk.
There are several ways to submit your FBN statement:
Submitting it digitally (a $9 fee is required)
Making an appointment to visit the Norwalk office in person (you can only make an appointment after submitting the statement online)
The form can be mailed to Business Filings & Registration, Post Office Box 1208, Norwalk, California, with a Declaration of Identity.
The registration form requires a lot of information. Therefore, before you begin, have your company’s details ready. You require the following details:
The underlying company or LLC’s certification of good standing
- The DBA’s proposed business name
- The DBA’s primary business address
- Names, addresses, & email addresses of people who have an interest in the company (owners)
- Addresses and names of organizations that have an interest in the company
- The company’s objective
- Contact details
- The owner’s signature
- Notarized Identity Affidavit form
- The filing fee
Each business name & one registrant must pay a $26.00 filing fee.
The DBA is valid for 5 years after the registration is granted. After that, it can be renewed indefinitely every 5 years with a $26 application cost. If the registration is not renewed, it expires.
5. Attestation of Publication
For four weeks in a row, a filed version of the statement needs to be published once a week in a Los Angeles County adjudicated newspaper. Within forty-five days after submitting the false business name declaration, publication must start.
Tax Identification Following Registration
For tax purposes, a sole proprietorship DBA may utilize the owner’s Social Security number (SSN). A partnership may be able to do the same in certain circumstances. A Federal EIN (Employee Identification Number) is not required for these organizations. You can get assistance with this from your accountant.
Any other kind of business ought to utilize, acquire, or possess a business EIN. If the underlying business lacks a federal EIN, you have to get one. The DBA doesn’t submit taxes because it is not a distinct business entity. Additionally, the DBA is not required to obtain its own state or federal tax identification numbers. The DBA’s employment and income taxes are paid by the underlying entity.
How to file a DBA in Los Angeles and surrounding cities
The primary purpose of filing a Fictitious Business Name Statement is to inform the public with whom they are doing business. All California-based businesses operating a DBA must register in the county where they have their principal place of business.
To file a DBA in Los Angeles, you need to file the DBA paperwork with the Los Angeles registrar. At anytime you need assistance with starting a new business or filing a dba, please contact our Los Angeles attorney for small business.
Conclusion
It’s easy to create a “doing business as” name; all you need to do is follow the guidelines provided by your county or state. Ideally, you should finish this process between thirty and sixty days before launching your business.
Within one & four weeks, you should receive a response from the area of authority regarding the authorization of your DBA name. Once you’ve been granted authorization, you can start your business by opening your doors, taking on new customers, and creating a bank account.
After that, constantly employ your company identity while conducting business, and check with the appropriate state offices to see if an annual renewal is necessary.