In California, an incorporated business is eligible to hold itself out to the public under a fictitious business name, or DBA, that’s different from the corporation’s legal name. There are a number of advantages to using one or more DBAs for a California corporation, such as when the legal name doesn’t exactly relate to the business. But before you can start using a DBA, you’ll need to file some paperwork in the California county where your business operates.
Overview of DBA Law
Sections 17900 through 17930 of the California Business and Professions Code govern the creation and use of DBAs by a corporation. Nothing within these code sections precludes a corporation from using more than one DBA. However, there are procedures that must be followed in order to protect California consumers from unnecessary confusion. For example, one provision prohibits a corporation from using a DBA that includes terminology such as “Inc.” or “Corp.” in the name since it implies that it’s a legal entity rather than a DBA. The ultimate goal is to ensure that every DBA can be traced back to the corporate entity, which is responsible for any issues that may arise with any of its divisions that use a DBA.
Checking DBA Availability
As your California corporation grows and the use of more than one DBA becomes necessary, you’ll need to make sure that no other business within the county where you intend to operate the business already uses it. The county clerks throughout California maintain databases of all fictitious business names currently being used, so a thorough search through your county’s database is necessary before filing DBA registration documents. Moreover, whether you use the same DBA in multiple counties or create multiple DBAs in just one county, each business name you register will require a separate filing.
California DBA Registration
All California counties are subject to the same DBA laws, but the clerk of each county is responsible for its enforcement within the jurisdiction, which includes receiving and executing fictitious business name statements. In addition to the available DBA name you’ve chosen, the registration form needs to include the principal business address within the county, the legal name of your corporation and a copy of the articles of incorporation that were filed. Lastly, the registration form must bear the signature of a corporate officer and be filed with the appropriate fee.
Publication of DBA
One reason that corporations choose more than one DBA is to separate different lines of business or divisions within the company. But regardless of the reason for creating multiple DBAs, California law requires that each DBA be separately publicized in a newspaper that circulates within the county where it’s registered at least once per week for four weeks. Also keep in mind that if you register the same DBA in multiple counties, you’ll need to publicize the fictitious name in each county.
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