I n California, filing a DBA–also known as a fictitious business name–allows a business to legally operate under a name different from its registered legal name. This is particularly useful for sole proprietors, partnerships, and corporations that wish to rebrand or expand their business operations. The process is relatively straightforward but requires careful attention to detail for ensuring compliance with state laws. This article discusses how to register a DBA, the specific requirements in California, and the benefits of a DBA.
What Is a DBA in California?
A DBA in California is a registration that allows a business to operate under a name other than its legal name. This can be essential for branding purposes, marketing strategies, or expanding business operations. DBA stands for the phrase “Doing Business As;” California also uses the term fictitious business name (FBN). Filing a DBA or FBN does not create a separate legal entity or offer liability protection, it simply allows the business to use a different name for its operations.
Why File a DBA in CA?
Brand Recognition
A DBA allows a business to operate under a name that may be more recognizable or marketable to its target audience. A business name that reflects the product or service you are offering is more likely to attract customers than a business name that’s simply your proper name. A DBA also allows you to rebrand your business (or a subsection of it) if you wish to pursue a direction different from your official business name.
Legal Compliance
Filing a DBA ensures your name is legally recognized, preventing other businesses from using the same name within the same county.
Flexibility
Businesses can use multiple DBAs, each one for different products or services, or branches of the home company. Multiple DBAs provide more opportunities for business expansion without creating separate business entities for each branch of your enterprise.
Professionalism
A DBA can give a small business a more professional appearance, thereby benefiting marketing efforts and increasing customer trust.
Privacy
A DBA can help keep your personal identity separate from your business. Some businesses (such as sole proprietorships and partnerships) may not have to register, and the owner’s name becomes the business name or legal entity. In those situations, a DBA allows you to operate your business under a name that is more about your company than you.
If you are operating as a sole proprietorship or partnership, you may be required to file a DBA if you didn’t file entity formation papers or select a business name. In that case, your legal name becomes your business name until you file a DBA.
DBA California Disadvantages
While there are many advantages to using a DBA, having a DBA alone won’t protect your personal assets if someone files a lawsuit against your business. Also, please note that having an FBN or DBA does not guarantee exclusive rights to that particular name. If you wish to limit legal liability or have more rights over the business name in your state, you may want to consider an LLC or corporation for your business structure. You may also file for a trademark for the business name to guarantee exclusive rights to the name in your industry.
Steps to Filing a DBA in CA
1. Research and Planning
Name availability
Ensure the desired DBA name is not already being used by another business in the same county by conducting a name search. You can search existing business names on individual county websites or the CalGold website. Note that the California Secretary of State’s website does not track DBAs, but it can be a useful tool to determine if a business name is already in use. Bizee also has a business name search tool that can help.
Compliance
Compliance is also important. Make sure the name complies with California’s naming rules, which prohibit names that could mislead the public about the nature of the business.
2. Application Process
Form completion
Obtain and complete the Fictitious Business Name (FBN) Statement form from your California county clerk’s office. Some counties allow you to file the FBN Statement online. Technically, the FBN Statement form must be filed no later than 40 days from when you start transacting business. However, it is wise to avoid conducting business under a fictitious name until you have filed the FBN form.
Filing fee
Submit the form and the required filing fee to the county clerk’s office. The fees vary by county, but they typically range from $10 to $100.
3. Post-Application
Publication
In California, publishing your DBA is a legal requirement. After filing your Fictitious Business Name Statement, you must publish a notice in a legally adjudicated newspaper in the same county as your principal place of business. Failure to publish can result in the rejection of your DBA filing. Some counties have specific timelines and newspapers designated for such notices, so verify which publications qualify with your county clerk.
Proof of publication
File proof of publication with the county clerk’s office within 30 days of the last publication date. Once you have submitted the FBN Statement form and published the notice, the FBN becomes active, and you can conduct business under that name.
Cost of Filing a DBA in California
The cost to file a DBA in CA varies by county but generally includes the following:
- Filing fee — the initial filing fee ranges from $10 to $100.
- Publication fee — the cost of publishing the DBA notice in a newspaper can range from $30 to $200, depending on the publication.
- Renewal fee — DBAs must be renewed every five years, and the renewal fee is similar to the initial filing fee.
The best way to know the exact cost of the fees involved for a DBA or FBN filing is to contact the clerk’s office in the county where you will be filing your application. You may incur additional fees if you register in more than one county or have multiple DBA names.
How Long Does it Take for California to Approve a DBA?
The approval time for a DBA filing in California can vary depending on the county and how fully you complete your application. Typically, the county clerk takes approximately one to two weeks to process the DBA or FBN filing. The publication process (publishing your notice in a newspaper) adds an additional four weeks.
Bizee Can Help Register Your FBN or DBA California
If you want to use a DBA to help grow your business, Bizee can help. Bizee can review your business idea and check on state DBA requirements, terms of approval, and associated fees so you can plan ahead. We can also save you time by completing and filing the DBA paperwork for you. Bizee has helped over one million entrepreneurs jumpstart their businesses. Contact Bizee today to learn how we can help.
