Doing business as, commonly referred to as a DBA, is a great way to protect your small business interests. Mainly, a DBA will help your small business develop in a way that protects both your business name and legal name.
Starting a DBA in California is quick and easy and will only take a few steps. Use this blog as your guide to setting up your DBA in the state of California.
What is a DBA?
DBAs are also known as fictitious business names (FBN) or trade names in California.
Small business owners can use a DBA for several reasons. One of the most common uses includes an owner changing their company name to one that differs from their California business or legal name. Another use includes using a DBA to focus on a business offering or product. This way, a business can use an alternative name without making a new business or a new business entity.
What are the benefits of a DBA?
- Filing a DBA makes it easier for businesses to enter into contracts or apply for loans.
- A DBA allows owners to change their business name without making a new legal entity.
- A DBA protects personal assets as it creates a separate legal entity.
- A DBA is more affordable and easier to file than comparable entities
Which business entities must register a DBA in California?
Five business entity types must register a DBA in California:
- Corporations (S corp or C corp)
- Limited liability company (LLC)
- Limited partnership
- General partnership
- Sole proprietorship
Corporations, LLCs, and limited partnerships will register a DBA in California if these entities will do business under a name not stated in the Articles of Incorporation or Articles of Organization. The name not stated could be almost anything as long as it's still available.
Partnerships or other associations that will use a name that won’t include the last name of each general partner will need to register a DBA in California. These entities will also need to register a DBA if the business name doesn’t suggest additional owners, such as:
- “& Associates”
- “& Company”
- “& Son”
- “& Sons”
- “Brothers”
- “Company”
A sole proprietorship will register a DBA in California if the business will operate under a name that doesn’t contain the owner’s last name.
How are DBAs in California different from other states?
DBAs in California differ from other states in two ways.
First: California business entities and individuals must file an FBN statement.
Second: to file an FBN statement, you can use the FBN search. You’ll find this on city or county websites in California, allowing you to see if your business name is available for use statewide.
FBN Search
Small business owners can use the FBN search to see if their business name is unique. The state of California has a few requirements regarding DBA names:
- Select a unique business name that isn’t already in use.
- The business name shouldn’t closely resemble an existing business name.
- The business name shouldn’t mislead the public.
How to start a DBA in California
You can start a DBA in California in three easy steps.
Step 1: California DBA Search
The first step to starting a DBA is to do a California DBA search. This will help you determine whether the desired business name is available and unique.
Finding a unique brand name and a usable domain to go with it can be a bit of a time-sink for new business owners. This free tool from Business Name Zone generates name and domain combos based on your input – and it only takes a few minutes.
Step 2: Register DBA
After you choose a DBA, you’ll register it. No matter which business entity you choose, you’ll register your DBA in California within the county where your business will operate.
Since the state of California oversees the registration of DBAs, the requirements are similar from county to county. However, there may be different fees to register your DBA.
You can file your DBA by mail or in person.
Step 3: Publish DBA Statement
The last step to start a DBA in California is to publish a DBA statement, also known as a fictitious business name statement.
You won’t file an FBN statement with the California Secretary of State. Instead, you’ll file an FBN statement in the county where your business will operate. You’ll file fictitious business name statements with the County Clerk’s Office.
In California, there are several requirements for publishing a DBA statement.
- You’ll file an FBN statement within 40 days of starting your business. You’ll work with the county where your business is located to complete this part of the process. You may need copies of your statement because the county clerk will keep the original documents.
- You’ll do this within 30 days of filing a fictitious business name statement. After filing the statement, the registrant must publish the statement in a local newspaper. The statement must be published in a local newspaper of general circulation where your small business will operate. The DBA statement will appear once a week for four weeks.
- Within 30 days of the final publication, the registrant will file an affidavit of publication with the city or county office.
Do you need to renew a DBA in California?
As the business owner, you’ll need to renew a DBA in California when your fictitious business name statement expires. You’ll also renew a DBA if any of the following applies:
- You’ll refile your FBN statement every five years, even if no changes exist.
- If you need to refile, you aren’t required to publish a renewal if the information is the same.
- You don’t need a third party to file a new or renewed FBN statement.
Start Your DBA in California By Working with the Experts
Establishing your DBA in California is exciting but can also be overwhelming, especially if you're just starting out. That's why so many California owners and entrepreneurs use 1-800Accountant, America's leading virtual accounting firm for small businesses, for their DBA needs.
Whether it's small business taxes, tax advisory, or any of our professional accounting services, we have the solution you need at a price that works for you. Schedule a quick consultation – usually 30 minutes or less – to learn how we can help.
This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. 1-800Accountant assumes no liability for actions taken in reliance upon the information contained herein.