They are generally different names for the same thing. DBA is the more common name, though FBN is cited in the relevant California statutes. In most states, businesses are required to file a FBN statement with the county clerk’s office or the secretary of state’s office to notify the public that they are doing business under a name that is different from their legal name.
A fictitious name has the same meaning as a DBA, and both terms are interchangeable. You need to file a FBN Statement anytime you are doing business under a name that is not your entity’s legal name that is on file with the California Secretary of State.
FBN and Consumer Protection in California
In California it is a consumer protection law that if you do any marketing or hold yourself out to the public under a name that is different from the legal name (a person or entity name) then you need to register it as a Fictitious Business Name (FBN).
DBA Requirements in California
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.
The state of California does not require all businesses to use DBAs for their businesses except for the following reasons:
- If you’re running a sole proprietorship and you plan to do business using a name that does not include your last name.
- If you’re running a partnership but plan to do business using a name that does not include the last names of each general partner or owner.
- If you own an LLC in California or other incorporated business and want to use a name different from the one stated in the Articles of Organization or Articles of Incorporation you submitted to the California Secretary of State.
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.
Registering for a DBA enables businesses to obtain necessary licenses, permits, and certifications mandatorily required for operations in the state of California. This compliance allows a wide range of commercial acts, including opening business bank accounts, securing lines of credit, applying for loans, and obtaining various business-related insurance policies.
Filing a DBA in California involves choosing a business name, checking its availability, filing the appropriate paperwork with the County Clerk’s office, publishing the DBA, and renewing it every five years.
What is an FBN?
A Fictitious Business Name (FBN) is a name chosen by an entrepreneur when starting a business. This allows establishing and registering the business under a unique name for branding and paperwork.
Filing a DBA in California involves:
- Choosing a business name
- Checking availability
- Filing paperwork with the county clerk
- Publishing the DBA
- Renewing every five years
Costs include county filing fees from $10-$100 and newspaper advertising.
The purpose of an FBN statement is to make public the identity of those doing business under another name. Banks often require an FBN statement before opening a business account. Providing false or misleading information on an FBN statement violates California statutes.
A DBA offers sole proprietors, LLCs and LLPs an extra layer of privacy versus using legal names. Minimal filing costs also make DBAs attractive compared to forming a new business entity. For example, if John Smith opens a shop called "Java Joe’s" under his LLC "Smith Enterprises," he would file an FBN statement with his legal business name and the DBA.