In business start-ups, one of the common questions is: “Do I need a fictitious name in California?” The reason an entrepreneur should know about the local law on DBAs is because it varies in each state. In California, the law states that business entities such as sole proprietorships or partnerships are allowed to operate under a fictitious name.
What about a limited liability company? You may ask: “Do I need or can I have a fictitious name for my LLC as well?” Yes, LLC companies can also file a DBA in California. And like most procedures dealing with businesses, DBA filing involves a string of paperwork and legwork.
If you are a novice not sure how to file a DBA in California, you run the risk of making filing mistakes, wasting time, and spending more than it costs. Smart entrepreneurs though prefer to leave it to professionals who can accomplish it for them without errors.
What Is a DBA or Fictitious Business Name? And Do You Need A Fictitious Business Name in California?
A DBA (doing business as) or fictitious business name (FBN) statement allows sole proprietorships, partnerships, and LLCs to run under a name different from their registered name. You can be creative in choosing a business name, with which your company or brand will be known. Often, fictitious business names do not include the individual owner’s surname. For example:
- “Joyce Smith Catering” is not a Fictitious Business Name
- “Smith’s Sweet Deli Catering” is a Fictitious Business Name.
On the other hand, Fictitious Business Names used by corporations, limited liability companies, or limited partnerships are any names other than the exact name that is on record with the Secretary of State’s Office. And since there is no state-wide or national registry in California, the law in this state requires that FBN’s are filed at the County level.
Do you need a Fictitious Business Name in California?
A Fictitious Business Name Statement is a public record that allows consumers access to the business owners’ information if needed. Banks also require this as an attachment when opening a company bank account for authorization purposes.
On the other hand, real estate investment trusts with authorized agents on file with the Secretary of State, non–profit organizations, labor unions, churches, and hospitals are not required to file an FBN statement.
The Benefits of Using an FBN
Whether you need a DBA if you use your own name depends on the state laws. In California, you are free to use a fictitious business name as long as it is properly registered. Most businesses choose a DBA to capture their market. Aside from that, there are many reasons why using an FBN is beneficial.
You need a fictitious business name in California to protect your privacy
For some, exposing their name in public is not a big deal. However, business owners who do not want their legal names exposed find operating under a fictitious business name valuable. Although the legal name can still be accessed by consumers through the FBN Statement, it still helps keep their identity properly protected.
An FBN offers value and flexibility
Brand awareness is the primary reason for DBA. With a catchy business name, strategic marketing is easier. It also allows you to expand in states where your legal name may no longer be available or cause confusion.
With a fictitious business name, you can also set up a business or company bank account hassle-free. This also allows for smooth transactions with banks or other financial institutions.
Simple Steps in Filing a DBA in California
An FBN Statement can be accomplished by mail, in person, or online. Keep in mind that an FBN is not necessary for any business. This decision is up to you. If you want to build your company’s reputation with a unique brand, follow the succeeding process:
1. Choose your company name
Prepare several fictitious business names. Figure out the ones that best represent your company or niche. It would be better to have three to five names ready, so you have a few alternatives in case the other is already taken.
2. Check the name’s availability
To find out whether your chosen business name is taken, run it through the California business name search. The Secretary of State has a database of registered businesses around the state. If it is no longer available, you have at least three or four names more to search.
The best way to check that your selected DBA name is available is to run a California business name search. The California Secretary of State maintains an online database of all the registered business names throughout California. From here, you’ll be able to find out if the fictitious name you want to use is even available before you continue along the process.
3. Fill out the forms
You are free to use your business name if it has no duplicate. After validating it, request the forms needed to file the FBN statement and fill them out. Make sure you do not skip important fields and that all information is accurate and properly spelled. You can submit the forms online, in person, or via mail.
If you choose to file in person, go to the Clerk-Recorder’s Office where a self-service station can be used to start your request. You can also send your application to the Clerk-Recorder’s Office by mail in a self-addressed stamped envelope. The next step is to pay the application fees in your county.
4. If required, publish your newly acquired FBN
Publish your newly acquired FBN in the local newspaper if required. The notice should be published once every week for four consecutive weeks. It would be best to check with the county clerk if there are recommended newspapers beforehand. This should be done within 30 days from the date the FBN Statement, Statement of Abandonment, or Statement of Withdrawal from Partnership (unless a Notice of Dissolution of Partnership has been published pursuant to Section 15035.5 of the Corporations Code), is filed.
Publishing the statement is necessary to establish your legal rights under the name. Otherwise, your rights may not be protected.
Things You Need to Know When Filing an FBN
The filing process is easy and the waiting time is not that long either. What may slow down the process is if you failed to provide the necessary information or missed a step. No changes can be made to your FBN statement once it is filed so make sure that all the information written on the form is accurate and complete. If an important change in the facts of the original statement has to be made, file a new FBN statement and publish it again.
Complete residential information of all the owners
The proper residential of all the registered business owners must be provided when filing the forms. Postal or mail service addresses will be invalid and your submission will not be accepted.
Who Must sign the forms?
The owner, partner, or any authorized officer of the company, partnership, or LLC, must sign all the forms related to FBN submissions, such as FBN Statement, Statement of Abandonment, or Statement of Withdrawal from a Partnership. This must be done prior to submission as missing signatures will cause a delay in approval.
Removing an existing partner
In case a general partner will be removed, they may file a signed Statement of Withdrawal from Partnership Operating Under an FBN Statement, pay the appropriate fee, and publish the form. But if a Notice of Dissolution of Partnership has already been published pursuant to Section 15035.5 of the Corporations Code, this is not necessary.
When does an FBN Statement expire?
The FBN Statement expires every five years from the date of filing. Refiling is required even if there are no changes in the facts of your statement. The difference is that publishing a renewal is not needed if there are no changes. You also do not need a third party to file a new or a renewed FBN statement for you.
Should You File an FBN On Your Own or Get Professional Assistance?
Do you need a fictitious business name in California? You don’t need one to operate your business. But if you want to use one, the process is simple, and if you know exactly what you are doing and don’t miss anything. However, the process can still consume a great deal of your time, which is better spent on business planning. The simple process does not also guarantee you would go through it only once. Often, a simple mistake may send you back to square one.
And since lots of companies are formed every day, you are likely to lose the name you want to another entity. To avoid such issues, asking for legal assistance is the best way to go. Our team of legal experts can accomplish the FBN filing task for you hassle-free and fast. Let us handle all the paperwork while you focus on your business.
Our seasoned business attorneys are well-rounded in trade and commerce, having handled a wide range of issues with a 100% success rate. We offer all sorts of legal services that will prove beneficial for your company’s smooth operation. Let us know how we can help you! Call us today and let’s get things done the right way!
