Introduction
Renaming your business could be a great option to handle several businesses, to enhance your brand, or to protect your privacy. There is the possibility of running your business under a different name and still being legally registered with a “doing business as” name (also referred to as a fictitious business name). It’s an easy method of promoting your company without creating a new company or renaming an existing LLC. This guide outlines the steps involved in registering a DBA in California as well as what to anticipate.
Getting a business name can be a little trickier than it would first appear. To ensure that your company name is legitimate and accepted by the state, there are a few measures you must take.
The first thing to be aware of is that if you intend to launch and register a business in California, you will need to select a business name to utilize on your formation paperwork. This will be the official name of your company. Nonetheless, a lot of companies must use a different name that’s easier to market or gives their clients a higher degree of identification.
The state of California mandates that you register a “fictitious name,” also known as a “DBA” name, with the state if you intend to run your business under a name other than your legal name or without a registration at all.
You should be aware that, except when you have a DBA, it is unlawful to operate your limited liability company under a name that differs from what is on the articles of organization if you are looking into how to register an LLC in California and intend to use this company structure. What is that, therefore, and how would it apply to your circumstances?
We invite entrepreneurs to contact our California Small Business Lawyer in San Diego for help in starting a business.
Doing Business As
You can designate a DBA (Doing Business As) name for your company after registering your LLC in California. In California, this is also referred to as a fictitious business name. It is not unusual at all and is frequently employed to set your company apart. To put it briefly, this is a different name that the limited liability company uses in addition to the one it created for your firm.
Unlike your LLC name, the DBA is not regarded as your formal business name in California. It is connected to the registered name of your LLC, nevertheless. Through this procedure, the state can determine if the name that you are using to do business is associated with the LLC authorized name you established.
A DBA can be created by any kind of business, including corporations, LLCs, partnerships, and sole proprietorships. Business owners can file a DBA online in California through the appropriate county.
In California, the term FBN is more likely to be used, even though you probably wanted to find out more about creating a DBA. A “fictitious business name” is referred to as an FBN. In the county where your business is located, you are required to register the FBN with the County Clerk’s office or Registrar-Recorder if you are:
- A sole proprietorship when the business name is distinct from the owner’s name.
- A partnership that goes by a name different than the last names of its members.
- A company, limited partnership, LLC, or other type of business entity operating under a name different from the official business name.
Now would be an excellent time to learn about the various business forms that are accessible to you if you intend to launch a California company.
DBA Benefits
Why would you have a legal name if this isn’t it? Many companies decide to create a DBA for a few main reasons. Additionally, keep in mind that you are not required to do it except when it creates value for your company. Among the advantages of the DBA are:
- Your company’s branding may benefit from it. You might choose a distinct brand connected with your company, depending on the name of your LLC.
- It permits the registration of your company name even if you have yet to register or establish a business entity.
- If your business requires it, such as when you are selling different items under various business names, you can register multiple DBAs.
- Additionally, it can enhance the secrecy of your company. To keep your business and personal banking distinct, you might choose to set up business banking accounts with regular payments made to the DBA. Increased privacy and security may result from this.
There can be further advantages for your company. Many business owners can find success with the DBA strategy.
DBA Drawbacks
While establishing a DBA in California has several advantages, there are some drawbacks as well, such as the following:
- You are not protected from liability by the DBA. This is due to the fact that it does not create a limited liability company for you. It is not a company in and of itself. Instead, it just permits your organization to conduct business under an assumed name instead of your company name.
- Additionally, there aren’t many tax advantages. Regardless of the name you choose, your taxes are the same. This is not the same as an LLC, where you have the option to pay corporate taxes.
- Additionally, until you apply for a trademark, no name rights are granted. You are not granted any kind of trademark protection simply by registering your DBA.
Is a DBA required in California?
No, establishing a DBA is not required by law for any business. Knowing that is essential. It is completely acceptable to utilize your LLC name for any other purpose. Remember that your business plan will often determine whether or not you decide to do so. Given the advantages of a DBA, many business owners would find it advantageous to set one up.
Applying for a DBA
Entrepreneurs who want to file a DBA online in California should review the applicable filing requirements. There are a few procedures you must follow to register a DBA in order to use it in California. Although this procedure doesn’t need to be complicated, it must be conducted correctly to guarantee correct registration.
1. Name specifications
Choosing a suitable name is the first task that needs to be completed. Similar to your LLC name, you must first confirm that your DBA is original in California before registering it. You can come up with a name that meets the majority of your requirements, but it can’t be too similar to or identical to another company name in the state.
Similar to your LLC name, it involves a few considerations. First of all, you are not allowed to choose a name that suggests your company is associated with the government or any other authority.
In particular, the law mandates that all names must be distinct from those of other businesses operating in the state and cannot be deceptive. The LLC designation is not required to be used in your DBA.
2. Start by doing an assumed name search in California
A quick name search can help before you file a DBA online in California. You must complete a name search when you have a few thoughts for the name of your DBA. To make sure the firm name you have chosen is distinct, conduct a business check using the state’s database. Make sure the name you want to use for your company is distinct from any other names.
3. Get a California DBA
California’s procedure differs slightly from what may be anticipated in other states. A fictitious business name (FBN) is created in California at the county level as opposed to the state level. This is completed at the county clerk’s office or registrar-recorder’s desk of the county where your company will be situated once it is established. It may be possible to file a DBA online in California depending on the county.
According to California law, any LLC operating under a name other than the one specified in the Articles of Organization or the Articles of Incorporation that have been submitted to the California Secretary of State must have a DBA. A rebuttable claim that the original registrant has sole authority to utilize that name is also established by creating an FBN.
4. After Obtaining a California DBA
As previously stated, you must advertise your DBA within thirty days of registering under California law. Keep in mind that doing so allows you to publicly demonstrate that you are authorized to conduct business using your new alias.
Additionally, keep in mind that even if you currently own the FBN/DBA, this fact is not permanent once the process is finished. Fictitious names may be used in California for a maximum of five years. Setting up automatic reminders for renewing your FBN/DBA is the simplest method to prevent any problems.
Does your company not have a main office in California?
You must register your DBA with the Sacramento County Clerk if your company is already operating in another state but not in California.
You must complete a DBA at the county level if you intend to run your LLC in California. Here are some examples of ways to accomplish this.
1. Sacramento County
Go to the website of Sacramento County Finance. Use the e-FBN Online Search there to see if the name you want to use is being used by any other companies. To finish the Fictitious Business Name Statement, click the link there. You must fill out this form with all of your LLC’s details. After that, you must mail it to the Department of Finance Tax Collection & Business License Unit of Sacramento County.
2. Los Angeles County
Go to the Los Angeles County website first. You can perform a county name search there by clicking on the link. This is the initial step that must be finished before continuing.
You will then have access to the FBN Statement Application. It can be sent or filed in person. A third party may also finish the DBA on your behalf. After that, select the filing category you want to use (this page lists a few), and then follow the instructions to fill out the form and download & print the necessary documents.
After that, you can mail the statement to the appropriate LA County office. For every county where you intend to conduct business, use the same procedure. The majority of county websites include instructions to help ease the entire procedure.
Repercussions for using a DBA without registering
You may not have intended to do this, but before you began doing business in the state, you neglected to set up a DBA. You might discover that running its operations at this time is illegal. Remember that if you employ the same name as your articles of organization, you are not required to have a DBA. The state should be informed if you intend to deviate from that, though.
If you fail to register the DBA with the state of California, you may face a number of repercussions. First, keep in mind that if a company is operating under a different name, it is not allowed to register a business account in its name without a DBA. Additionally, you run the danger of losing the legality and authenticity of any agreements you establish while you lack the required DBA.
Additionally, you and any other members of the DBA may be held personally accountable for neglecting to reveal the business owner’s last name if you fail to register as a DBA.
If people don’t perform these actions, the state may first penalize them with warnings and fines. They might also need to stop all business activities in certain circumstances. They are legally able to shut down a company that doesn’t meet the conditions.
Tax-related factors
In California, your DBA isn’t a kind of corporate structure. This implies that filing your taxes and finishing your DBA are unrelated. Your taxes won’t change simply because you filed a DBA. Working with an accountant is vital in figuring out the tax regulations that apply to your LLC. Your business’s taxes are unaffected by your DBA.
Modifying the California DBA
Businesses may wish to alter their current name under certain circumstances. You must first perform a DBA California check to see if the new name is available if you have previously submitted a DBA and wish to modify it. When selecting your first or original fictitious business name in California, you must adhere to the same rules. The steps listed below will guide you through the procedure:
- Obtaining the DBA name change document, commonly referred to as the DBA name-registration form, is the first step. The county clerk’s office has the form.
- Fill out the California DBA file amendment form, including the new name, the old DBA name, and the registration date.
- Send in the DBA change or amendment form by mail, in person, or, if accessible, online.
- Send it in with the payment specified by the county clerk’s office.
- Post a notice about the DBA name change in the local newspaper.
Cancelling a California DBA
If necessary, you can cancel your California DBA application after it has been filed. In California, you must file a declaration of abandonment of the use of a fictitious business name; therefore, the cancellation process is different. This statement must be filed with the County Clerk’s office and will be executed similarly to a fictitious business name statement.
The declaration of abandonment must be published in the county’s officially adjudicated publication when it is submitted. For four weeks in a row, you must make sure it is released once a week. After that, you must provide the relevant county clerk’s office with an affidavit attesting to its publication.
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):
- Alameda County, CA
- Alpine County, CA
- Amador County, CA
- Butte County, CA
- Calaveras County, CA
- Colusa County, CA
- Contra Costa County, CA
- Del Norte County, CA
- El Dorado County, CA
- Fresno County, CA
- Glenn County, CA
- Humboldt County, CA
- Imperial County, CA
- Inyo County, CA
- Kern County, CA
- Kings County, CA
- Lake County, CA
- Lassen County, CA
- Los Angeles County, CA
- Madera County, CA
- Marin County, CA
- Mariposa County, CA
- Mendocino County, CA
- Merced County, CA
- Modoc County, CA
- Mono County, CA
- Monterey County, CA
- Napa County, CA
- Nevada County, CA
- Orange County, CA
- Placer County, CA
- Plumas County, CA
- Riverside County, CA
- Sacramento County, CA
- San Benito County, CA
- San Bernardino County, CA
- San Diego County, CA
- The City and County of San Francisco, CA
- San Joaquin County, CA
- San Luis Obispo County, CA
- San Mateo County, CA
- Santa Barbara County, CA
- Santa Clara County, CA
- Santa Cruz County, CA
- Shasta County, CA
- Sierra County, CA
- Siskiyou County, CA
- Solano County, CA
- Sonoma County, CA
- Stanislaus County, CA
- Sutter County, CA
- Tehama County, CA
- Trinity County, CA
- Tulare County, CA
- Tuolumne County, CA
- Ventura County, CA
- Yolo County, CA
- Yuba County, CA
In conclusion
Whether your company is formally an LLC or not, there are benefits to establishing a DBA with the state of California. But it’s essential to know the drawbacks and whether you really need a DBA. When you’re prepared to formally establish your company, visit the California LLC website to find out more!
FAQs
1. What distinguishes a DBA from an LLC?
Members of a limited liability company are legally shielded from the obligations and liabilities of the company. A “doing business as” (DBA) allows a company to function under a designated name. It offers no legal protections to its owners.
2. Is there a cap on the number of DBAs?
Operating under many DBAs is feasible, and the possibilities are theoretically endless. Nevertheless, in order to prevent misunderstanding, you should be careful to maintain the organization of your DBAs and associated accounts.
3. Can a DBA be used by an LLC?
If they so choose, an LLC owner/owners may establish a DBA. LLCs must register differently than partnerships or sole proprietors in some states. However, every DBA in California is documented at the county level.
4. What are a DBA’s advantages?
Using a different business identification from your previous legal name, a DBA enables you to create bank accounts and conduct other business transactions within the state, city, or county where you register it.
5. What is the duration of a DBA?
States have different regulations on how long a DBA is valid, so you ought to check with the secretary of state in your state or the entity you filed the DBA with to find out if a renewal is required and when it is due. While renewing a DBA is not required in some states, like New York, there are restrictions in other states. You have 5 years in several states before you have to extend or renew your DBA.
6. How much does it cost to file a DBA in California?
Depending on the county in which you operate, the filing cost for a DBA in California can vary from ten dollars to a hundred dollars. State-level DBAs are not filed.
Publication of your fictitious company name statement in a local newspaper with an authorized general distribution will cost you extra. The amount that the newspaper charges for advertising will determine this.