This name is often referred to as a Fictitious Business Name. When a business wants to operate under a name other than its legal name, California requires the company to register its business name. The registration was designed to protect consumers from business owners hiding anonymously.
Fictitious Names are filed with your city or county, not the Secretary of State. You can check with your County Clerk’s office for details.
Steps for Registration
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Choose a Name
Picking a trade name requires checking no other business uses that name. You can search registered business names on the California SOS website.
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Check Name Availability
Ensure your chosen business name is unique and no one else formed a company with it or controls it online.
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File with County
In California, Fictitious Business Names are filed with the County Clerk where the principal place of business is located.
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Publish Statement
Publish the statement in a local newspaper.
Gather documents like proof of your business name, address, tax ID, and insurance. Get your license by submitting documentation to your local/state agency. Pay the license fee. The process takes 4-5 weeks so file well in advance of when your business wants to use the new name.
Cost of Fictitious Name Registration
A business operating under a fictitious business name will need to register a Fictitious Business Name Statement (commonly known as a DBA) in California.
DBA and Fictitious Business Names
In California, a DBA may be called a “fictitious business name,” or FBN. Although it’s referred to as fictitious, the name is legitimate as is any other business name, whether it refers to an organization or an individual. Owners of sole proprietorships often utilize DBAs, especially when the name of the business is different from the owner’s name.
DBA is an abbreviation of “doing business as.” In some states, businesses need to file for DBA or fictitious names to protect their customers. A fictitious name has the same meaning as a DBA, and both terms are interchangeable.
How to Register a DBA
First, acquire the appropriate forms for registering a DBA in your jurisdiction. Complete the Forms. Provide all required information on the DBA forms. Provide Your Business Entity Type. Provide Any Other Information. Sign the Forms. Pay the Fee and File the Forms.
Naming Your Business
The name of your business is up to you, but it needs to be properly registered with the state of California. This can be done in person in the county where you reside, or you can handle it all through the mail.
Most counties and cities in California have a fictitious business name search on their individual website. You can also use the Governor’s Office of Business and Economic Development, which provides a search for the majority of localities.
Besides being unique, business names in California must adhere to other rules, whether DBAs or official names. These names must not mislead the public as to the nature of the business or imply that it is in any way unlawful. Naming conventions also require that the correct designation is used.
You will want to file your DBA application as soon as possible. You cannot open your business in California until you have your DBA approved by the state. You will also need to refile the fictitious name application anytime you make changes to your business entity structure.
Benefits of a Fictitious Name
Here are a few additional benefits you’ll receive by registering a fictitious name in California: The ability to open a business bank account. You are unable to use your personal bank account to issue or receive checks under your business name.
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.
The registration requirement was designed to protect consumers from business owners hiding anonymously behind the name of a business.
If you’re preparing to start a business in California, you’ll need to know when to file a DBA and how to do so.
When You Need a DBA in California
Not ready to form a business entity yet? Get a DBA instead. There are a few instances in which a DBA is a requirement for operating your California business. Most commonly, this is when you decide to run a business as a sole proprietorship or general partnership without forming a legal business entity.
In this case, you have two options: get a DBA or use your personal name as the business name. If you choose the latter, your personal assets could be at risk if your business is sued. With a DBA, you limit personal liability while still taking advantage of the ease of business operation as a sole proprietor or partnership.