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The acronym for DBA stands for ‘doing business as.’ It is any registered name that a company or individual uses to do business that isn’t its legal name.
The legal name of a company differs depending on its business structure. It’s the company name for a limited liability company (LLC). And, for sole proprietors, the legal name of their business is their personal legal name.
DBAs are also referred to as fictitious names, trade names, or assumed names. The only aspect of your business that a DBA changes is its name.
An example of this is if you own a business, its legal name is your name (e.g., Barry Jones). Barry Jones wants to start a business that designs and prints marketing materials. He knows that he can’t simply use his personal name because people won’t know the services and products he is offering. So, Barry Jones registers the DBA name Barry’s Print Shop, and it becomes the name of the business. It changes nothing else about the structure of Barry’s Print Shop.
The DBA allows Barry Jones to operate under a fictitious business name, and it no longer defaults to his own name.
You must make sure that a fictitious business name is not already in use in California.
The California Secretary of State does not provide online name searches. You will need to fill out the available PDF form. Currently, some counties in California do offer online name searches.
You can search the county clerk’s database, submit the name request by mail, and then set up a priority search that you can do over the phone if you have to check available names regularly.
You can’t start a legal business in California without a DBA. You will need to repeat step 1 until you’ve found a unique fictitious business name and been approved.
You must file a fictitious business name statement at your county clerk’s office. The forms and fees are different from county to county. It is why it is essential to make sure that you’re at the right county clerk’s office and check beforehand on the amount of the filing fees.
Notarization: You must get the fictitious business name statement form notarized by either an officer, partner, or member of the company or by the owner itself.
Check with your county clerk’s office to see if the form is available for download and printing. Some counties require you to pick up a hard copy form from the county clerk’s office.
You must file the required forms with your county recorder or clerk’s office in the same county where your company’s main headquarters is housed.
Another requirement to file a DBA in California is that you must submit the required forms and fees within 40 days of starting the business. The fictitious business name statement is good for five years from the date submitted. If you need to change any information, you must resubmit a new statement.
Once you’ve filed the fictitious business name statement, you must then publish a DBA statement within 30 days. It then has to run for four weeks in your local county publication where you plan on doing business.
The county clerk’s office will have a list of approved publications to publish. Also, you’re required to have a county clerk’s signature on an affidavit from the publication within 30 days of the last publication.
Double check with the publication you plan to publish the affidavit to ensure that they will provide it to the county clerk after completing the requirement of making it a public record. It must be an approved newspaper of general circulation.
You must pay your filing fees when you file your DBA name. The pricing varies from county to county.
Examples: The DBA cost in Los Angeles County is $26 for the first name you choose and then $5 for every additional name. Sacramento County, the filing fee is $44 for the first name and $8 for any additional name.
The fictitious name statement is good for five years. When it expires, you will need to refile it. You do not have to publish your DBA California statement in publications again if nothing changes about your company.
A DBA name must not include words with specific meanings such as Inc (incorporated) or limited liability corporation (LLC). California requires you to choose a DBA name that doesn’t mislead customers in any way.
All a DBA does in California is change your business name. It has no effect on the status of a business entity for tax purposes. A DBA is only an alias. You do not have to have a separate employer identification number (EIN).
The filing fee for a DBA in California ranges from $10 to $100, depending on the county you are doing business in. You do not file DBAs on the state level.
You will have the additional cost of publishing your fictitious business name statement in an approved general circulation local newspaper. It will depend on how much the publication charges for advertising.
A fictitious business name, or DBA, is how companies do business under a specific name filed in a state or county. A company name is the legal name of the business.
Companies in any industry can register a DBA. It includes sole proprietorships, LLCs, corporations, franchises, and non-profits.
The difference between a DBA and a business name is that a DBA is only an alias. It does have to be associated with a legal entity.
In California, the law requires all sole proprietors, LLCs, partnerships, and corporations to file a DBA if they want to operate and sign legal documents under any name but their legal name.
A DBA benefits you and your company in a variety of ways and depends on a legal business entity and the preference of the owner.
Small business owners benefit from DBAs because it gives them creative freedom when naming their businesses. Also, it keeps them from having to pay hefty fees and the hassle of having to form and register LLCs or corporations.
California state law requires all companies to file a DBA if they wish to operate under any name different from the legal name. It goes for sole proprietors, partnerships, limited liability companies, or corporations. The only exception is if a sole proprietor incorporates their last name into the business name.
It takes one to four weeks for California to process a DBA registration. In some cases, it may take longer.
DBAs and trademarks are entirely different things. A DBA allows you to use a fictitious business name that is not your legal name for your business. A trademark is a type of intellectual property registration that protects your business’s branding.
You can register more than one DBA in California as long as you follow the proper steps for each one. Remember, you can’t register with the state of California. You are required to file DBAs through the county clerk’s office in the principal place of business.