What is a DBA in California and Why Should Your Business Register One?
In California, a DBA (Doing Business As) is a name that businesses such as sole proprietorships, partnerships, LLCs, and corporations can use instead of their legal name. Also known as a fictitious business name, a DBA provides branding flexibility while ensuring legal compliance
Registering a DBA informs the public of the business’s actual owner, serving as a consumer protection measure.
What Is the Difference Between a Legal Name and a DBA?
Every business has a legal name, which for sole proprietorships and partnerships is the owner’s name, and for corporations and LLCs, it’s the name listed on their formation documents. A fictitious business name (DBA) is any name under which a business operates that differs from its legal name. It allows businesses to market their products or services under a more flexible name while maintaining legal compliance.
Benefits of Establishing a Fictitious Business Name (DBA)
There are several advantages to establishing a DBA for your business:
- Establish a unique brand identity.
- Maintain privacy by keeping your personal name separate.
- Open business bank accounts under the business’s name.
While a DBA offers branding and operational flexibility, it’s important to understand that it does not provide legal protection for the owner’s assets. Additionally, when forming contracts, both the business’s legal name and DBA should be used to clearly identify the entity.
When Is Registering a DBA Required?
In California, registering a fictitious business name (FBN) is required when:
- A sole proprietorship operates under a name that does not include the owner’s last name.
- A partnership uses a business name that leaves out the last names of all general partners or suggests additional owners.
- A limited partnership, corporation, or LLC operates under a name not listed in the Articles of Incorporation or Articles of Organization submitted to the California Secretary of State.
How Do You Register a DBA in California?
To establish a DBA, the following steps must be completed:
- Research the desired name to ensure availability.
- File a fictitious business name (FBN) statement with the appropriate county office.
- Pay the required fee for registration.
- Meet publication requirements by publishing the DBA in a local newspaper, as required by California law.
At TONG LAW, our experienced business law attorneys can assist you with the DBA registration process and help ensure that your business operates in full legal compliance.