How to Get a DBA in California

Entrepreneurs must file a fictitious business name (FBN) statement with the Registrar-Recorder/County Clerk’s office in the county where they will do business.

By Brad Nakase, Attorney

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Table of Contents

1. What is a fictitious business name?

2. Is a DBA the same thing as a fictitious name?

3. When is a DBA necessary?

4. Why should you get a DBA?

5. What are the benefits of a fictitious business name?

6. Are there DBA restrictions in California?

7. How do you get a DBA in California?

8. Where to find forms to get a DBA

What is a fictitious business name?

In California, the law states that a DBA filing, or fictitious name filing, must be made when a limited liability company, sole proprietorship, or corporation intends to conduct business in the state.

When you register a business name as a DBA, the state permits your company to operate using a name different than what was used when the company was formed. In the end, reputation is everything. A business’ choice of name will be the basis of an eventual brand and commercial relationships. There are a lot of reasons why an entrepreneur may want to begin with a clean slate and pick a DBA name, otherwise known as a ‘doing business as’ name, instead of the name that was registered originally with the Secretary of State in California.

When you register a business name, you gain the right to operate a company under any name different than the company’s or individual’s legal name. It can be simple to make this crucial name change and get a DBA name, though there are some administrative challenges to confront and some considerations to take into account. We invite entrepreneurs to contact our California small business lawyer in San Diego for help start a business.

Is a DBA the same thing as a fictitious name?

The answer to this question is yes. A fictitious business name, or FBN, is the same thing as a DBA. While a name is referred to as fictitious, it is just as legitimate as any other business name, whether it refers to an individual or an organization. Sole proprietorship owners often make use of DBAs, particularly when the name of the company is not the owner’s name.

Your choice of fictitious business name is your own, though whatever it is, it must be registered with the state of California. Registration may be conducted in person in the county of residence, or it may be dealt with via mail.

When is a DBA necessary?

In California, it is necessary to get a DBA name in certain situations. According to the law, it is necessary to get a DBA name any time sole proprietorships, limited liability companies, partnerships, and corporations want to operate and sign legal documents using a different name. This law was created as a way of protecting consumers – to stop owners of businesses from avoiding liability by running the company using a different name. For owners of sole proprietorships, it is necessary to get a DBA name in California any time they want to conduct business using a different last name, or if the owner does not mean to use their surname at all.

Examples

Let’s take a look at an example. Jane Smith forms a candy shop called Smith’s Sweets. She may not need to get a DBA with this name. However, if her business was going to be called Sarah’s Sweets, she would need to get a DBA. The surname is the critical element. If Sarah does not plan to use her last name in the business name, she should get a DBA. A fictitious business name should also be filed in the state of California if an owner wants to specify unnamed owners, such as a store called ‘Miller and Sons.’

Let’s take a look at another example and consider a business registered in California under the name “Rob’s Hot Wings LLC.” Rob, the owner of the gastropub, wants to change the name of his company to “Wing World.” To make this name change, Rob would need to get a DBA by filing an application with the county in which his business operates.

Certain businesses decide to use a fictious business name even though it may not be required by law. Plenty of companies start out with certain goals, and hence, one name. However, as time passes, they might alter their objectives and rename themselves in an effort to rebrand. Thus, sole proprietorships are not the only entities that need to get a DBA, or fictious business name. This is especially the case in California, where tech startups spring up like daisies.

A business owner will need to file for a fictitious business name if he or she has a division that has a specific interest, and he or she plans to conduct business or set up a website with that focus. For instance, let’s say Sally owns a gardening store and operates under the name “Lewis Gardening.” However, Sally wants to open an online store dedicated to flowers. She should get a DBA using the name of the website, such as “LewisFlowers.com.”

If a corporation was registered under a particular name, the owners would have to submit a DBA form to get a fictitious business name. For instance, if a company was registered under the name, “Deidre’s Wardrobe, Inc.” and operates only under that name, it would not require a fictitious business name. However, if the owners chose to leave out the “Inc.” from the name, they would need to get a DBA.

Why should you get a DBA?

It is very cheap and simple to get a DBA in California. Indeed, most of the process can be completed online or via mail. The entrepreneur only has to file paperwork in person. It is possible to establish a separate identity (though not an entity) without the difficulty of creating a corporation, LLC, or other structure.

Typically, sole proprietors will need to get a DBA to open a bank account and make profits in the business’ name. When you get a DBA, you can establish multiple companies without needing to set up a completely separate entity. If you want you have more than one website or restaurant, you can establish a parent organization, then use a fictitious business name for the subsequent businesses underneath its umbrella. This would be a great situation in terms of taxes and paperwork, making operating multiple businesses simpler.

It should be noted that getting a DBA does not alter a business’ tax consequences. Also, if an individual runs a corporation or an LLC, a fictitious business name could encourage compliance with the law. If a business owner creates a contract using a different name than the legal, operational name, the contract may be declared invalid or unenforceable in a court of law.

What are the benefits of a fictitious business name?

It is often a smart decision to get a DBA in the state of California, regardless of whether you intend to build a big business eventually or simply have a career in self-employment. You may build a business that has your dream name, so long as it is available, even if you are starting out as a sole proprietorship.

One of the benefits of using a fictitious business name is that it allows you to keep your personal information private. When the name of the business becomes well known, your name remains private. You may not wish everyone to know you own a particular business. Also, if a business name must include multiple names, as is the case with a law firm called “Smith, Jones, and Johnson,” a fictitious business name may be useful.

Are there DBA restrictions in California?

In California, you may not use any misleading commercial suffixes such as “LLC,” “Corp,” or Inc.” Such abbreviations make it seem like the business is set up in a certain way, which has tax and legal consequences. When a business becomes an LLC or corporation, there are strict regulations and liability matters that could mislead the public.

It should be noted that when you get a DBA in California, you do not have exclusive rights to the use of that name. To protect your business name legally, you would have to register a trademark.

How do you get a DBA in California?

Before you register a business name, you should make sure to speak with a lawyer to ensure it is the best course of action for your company. You should also note that all the steps required to get a DBA are managed through the county clerk’s office or the county recorder. You cannot get a DBA on the state level in California. According to section 17918 of the Business and Professions Code, California business owners using fictitious business names are not permitted to operate their companies using the fictitious business name until they have registered the business properly under that name.

Step 1: Checking the name

Before your register a business name, you should first ensure that the fictitious business name is not already being used in California. You may search for information about fictitious business name searches on the Secretary of State’s website. Usually, there is no charge at this stage of the process. You may also search the local county clerk’s database, submit a search request via mail, or create an account to do priority searches over the phone.

If your first choice of fictitious business name is not available, you will have to start over since you cannot use a name that is too similar to an existing business in California. Once you have thought of a new name, you can begin the search process again to ensure it is available. A fictitious business name cannot include particular words with specific meanings, such as ‘limited liability company’ or ‘incorporated.’ Also, your selected name cannot confuse or mislead customers.

Step 2: Get a DBA name statement

This document may be found at your county clerk’s office. The fees and forms vary according to county, so ensure that you are in the correct county before you register a business name. You can check with the clerk’s office to learn what the required fee is in the specific area. The statement itself consists of the original address and name, the fictitious business name, the address of the business, the owners’ full legal names, the state business ID number, and the type of business. Because this form will become a part of the public records, entrepreneurs are careful not to include their personal phone numbers.

The statement will need to be notarized by a partner, officer, or member of the company. It may also be notarized by the owner themselves before they register the business name. It may be possible to print the document from the website of the county clerk, though certain counties ask that business owners pick up hard copies from the office itself. The form needs to be filed with the clerk’s or county recorder’s office in the county where the business has it main office.

The filing process also mandates that the required paperwork is submitted no later than forty days after starting the process. After the process is finished, the statement will expire 5 years after the date of filing. If a business owner wants to change any information, he or she will have to file a new statement before the date of expiration for the original. If the business’ information has not changed, there is no need to republish the statement.

Step 3: Publish the fictitious business name

Once you have filed the statement, a business owner will need to publish a DBA statement no later than 30 days after filing the paperwork. The statement has to run for four weeks in a local newspaper where the business operates. Prior to publishing the fictious business name notice, you should check with the county clerk’s office to learn whether certain publications are acceptable. It will also be necessary to present the county clerk with a signed affidavit from the publication no later than 30 days following the final publication. Ensure that the newspaper you select will give the affidavit to the county clerk’s office after finishing the requirement.

Step 4: Pay fees

Once you submit the paperwork for the DBA, you will have to pay any mandated fees. The fee for establishing a DBA varies according to county. For instance, in Los Angeles County, the fee is $26 for the first name and an additional $5 for another name. The fee is $30 in Placer County for the first name and an additional $5.50 for any other.

Step 5: Follow up

Five years after filing, the fictitious business name statement will expire. The business owner will need to refile before time runs out, but it is not necessary to publish the statement again so long as there have not been any changes.

Where to find forms to get a DBA

To get any of the documents related to registering a business name, you can go to the county clerk’s office. Some counties allow you to do online searches. Every county has different forms, so you will have to contact each county in which you operate to make sure you have the proper paperwork.

In California, there are many financial, legal, and tax implications involved in changing the name of company to a fictitious business name. It is important to understand that registering a business name as a DBA in California will not affect its tax status. Rather, the entity type you selected, such as corporation or LLC, will determine the tax status.

City County Clerk to File A Fictitious Business Name (DBA):