DBA California Disadvantages
While there are many advantages to using a DBA, having a DBA alone won’t protect your personal assets if someone files a lawsuit against your business. Also, please note that having an FBN or DBA does not guarantee exclusive rights to that particular name. If you wish to limit legal liability or have more rights over the business name in your state, you may want to consider an LLC or corporation for your business structure. You may also file for a trademark for the business name to guarantee exclusive rights to the name in your industry.
Steps to Filing a DBA in CA
1. Research and Planning
Name availability
Ensure the desired DBA name is not already being used by another business in the same county by conducting a name search. You can search existing business names on individual county websites or the CalGold website. Note that the California Secretary of State’s website does not track DBAs, but it can be a useful tool to determine if a business name is already in use. Bizee also has a business name search tool that can help.
Compliance
Compliance is also important. Make sure the name complies with California’s naming rules, which prohibit names that could mislead the public about the nature of the business.
2. Application Process
Form completion
Obtain and complete the Fictitious Business Name (FBN) Statement form from your California county clerk’s office. Some counties allow you to file the FBN Statement online. Technically, the FBN Statement form must be filed no later than 40 days from when you start transacting business. However, it is wise to avoid conducting business under a fictitious name until you have filed the FBN form.
Filing fee
Submit the form and the required filing fee to the county clerk’s office. The fees vary by county, but they typically range from $10 to $100.
3. Post-Application
Publication
In California, publishing your DBA is a legal requirement. After filing your Fictitious Business Name Statement, you must publish a notice in a legally adjudicated newspaper in the same county as your principal place of business. Failure to publish can result in the rejection of your DBA filing. Some counties have specific timelines and newspapers designated for such notices, so verify which publications qualify with your county clerk.
Proof of publication
File proof of publication with the county clerk’s office within 30 days of the last publication date. Once you have submitted the FBN Statement form and published the notice, the FBN becomes active, and you can conduct business under that name.