A business operating under a fictitious business name will need to register a Fictitious Business Name Statement (commonly known as a DBA) in California. Learn more about what a Fictitious Business Name Statement is, who needs one, and how to register.
What is a Fictitious Business Name Statement?
A Fictitious Business Name Statement, more commonly known as a DBA (Doing Business As), Trade Name, or Assumed Name, is a name used by a business that is different from the legal name of the business. This name is often referred to as a Fictitious Business Name in California.
When a business wants to operate under a name other than its legal name, the state of California, like most states, requires the company to register its business name. The registration requirement was designed to protect consumers from business owners hiding anonymously behind the name of a business.
What is a Fictitious Name good for?
A Fictitious Name is required for many businesses in order to operate legally and provides information on the people operating a business. In addition to the legal requirement, a Fictitious Name offers other benefits such as proving a business’s existence, opening a bank account under a business name, registering a merchant account to accept credit cards, and others.
Who needs to register for a California Fictitious Name?
Any business doing business under a name that is different from its legal name has to register for a DBA in California. The Fictitious Business Name Statement must be filed within 40 days of starting a business.
Sole proprietorships and general partnerships are the most common entity to register a DBA. The legal name of a sole proprietor or partnership can be the owner’s last name, which isn’t registered. Using the owner’s name to name a business works for many self-employed business owners, however many businesses want to operate under a distinct and brandable business name.
Corporations, Limited Liability Companies, and Limited Partnerships won’t typically register a fictitious name since a unique entity name is created during the formation process. Some will file an FBN if they have another business they want to operate under their corporate/LLC/LP umbrella to keep the liability protection without having to form another entity.
It’s important to note that registering a business name puts the name and address of the owners on public record. This is especially important if you are starting a business on the side and worried about your employer finding out. While it’s extremely rare that someone would find out on their own, it can still be a concern.
How much does a DBA cost in California?
The cost to file an FBN varies by county but is typically around $30, plus publication costs. The name registration needs to be renewed every five years.
What are the steps to file a Fictitious Name in California?
Step 1: Verify the Name is Available
Regardless of the business entity, every business registering a Fictitious Business Name statement will file a Fictitious Business Name Statement with the County Clerk in the county where the business is located.
If the business is located out-of-state (only for foreign entities such as corporations and LLCs), they will register in Sacramento County.
Here is a list of County Clerk’s offices in California.
DBA filings in California must be unique or can’t closely resemble other registered names in the county where the business is being registered. Before filing, search the county’s name database, many of which are online, to ensure the name you want to use is available.
Step 2: Fill out the Fictitious Business Name Statement
Contact the County Clerk’s office in the county where your business is located to request the FBN form. The form and filing fees will vary by county. Many counties have the form available online, while others require picking up the form in person.
Common information requested on the form includes;
– Requested name of the business
– Owner’s name & address
– State business ID number
– Type of business entity
Step 3: Notarize and Sign the FBN Statement
The form will need to be notarized and signed by the business owner, partner, officer, or LLC member, before submitting the form. Notary services are available at no cost at most County Clerk’s offices.
Step 4: Submit and Pay
After filling out and notarizing the form, submit the form and payment to the County Clerk, either in person, mail, or online in some counties.
Step 5: Business Name Publication
After submitting the form, there is a requirement to publish a legal notice in a local newspaper, once a week for four consecutive weeks within 30 days of the filing. This notice will typically run in a newspaper with general circulation in the county where the name is being filed. The county will have a list of approved publications.
Expect to spend $30 – $100 to publish.
After the four weeks of publication, the newspaper will provide a signed affidavit that must be submitted to the County Clerk within 30 days of the final publication.
If the name is being refiled, there isn’t a publishing requirement unless any information is changed from the original statement.
Are there any naming restrictions when filing a California DBA?
There are a few words that can’t be used in a Fictitious Business Name.
– Entity designators such as Corp, Corporation, LLC, Limited Liability Company, etc., unless the entity is registered as that type of entity with the Secretary of State.
– Words such as Bank, Trust, Trustee, etc., can’t be used unless they are licensed to provide banking services.
– More generally, a name can’t include words that may mislead consumers about the nature of their business.
Is a DBA required in California?
Any California sole proprietorship or partnership that wants to do business under a name that is different from the owner’s full name or a California corporation or LLC that wants to operate under a name that is different from the legal name of the entity is required to register the name.
How long does it take to get a DBA in California?
The time to process a Fictitious Business Name varies by county, but will typically take 4-6 weeks.
Can someone use my business name after registering a California DBA?
While registering your Trade Name will keep someone else from registering the exact same name in California, it does very little to stop someone else from operating a business under that name in other states.
If stopping others from using your business name is important, you can protect it through a federal trademark through the U.S. Patent & Trademark Office.
Learn more about trademarking a business name.
Does a DBA need an EIN?
An EIN or Employer Identification Number (also informally called a business tax ID number) is a unique nine-digit number that some businesses will register for through the Internal Revenue Department (IRS). An EIN is required for partnerships, corporations, multi-member LLCs, or any business that has employees.
Sole proprietorships and single-member LLCs without employees can use the owner’s social security number to identify the business.
There is no cost to get an EIN when registering directly from the IRS.