Choosing a name for your business is one of the first stages in starting one as a sole proprietor in California. You might not want to use your legal name as the company name, though. You might need to file a DBA (Doing Business As) with the state of California in this situation. A DBA is often referred to as an assumed business name or false business name. You are able to carry on business under a name other than your legal name.
Depending on the kind of business you operate, California has different requirements for DBAs. You do not need to register for a DBA if you are a solo proprietor and operating under your legal name. The county clerk’s office in the county where your business is located must receive a fake business name declaration if you are operating under a name other than your legal name. This declaration must be printed for four weeks straight in a neighborhood newspaper and submitted to the county clerk’s office within 30 days of publication.
It’s crucial to understand that a DBA offers your company no legal protection. You can just choose a different name for your company. Consider creating an LLC (Limited Liability Company) if you wish to shield your private assets from legal actions and debts incurred by your company.
Due to the fact that an LLC is a different legal entity from its owners, it is able to contract, bring legal action, and own property. The business and its owners are kept apart to safeguard the owners from personal liability. A sole proprietorship, on the other hand, does not provide this protection, and the owner is personally liable for any obligations or debts created by the business.
Even if your company is an LLC, you can still operate under a different name by using a DBA. If your LLC is called “Smith Enterprises LLC,” but you prefer to operate under the name “Smith Plumbing,” you can file a DBA application for “Smith Plumbing” and use that name going forward.
In California, there are a few steps you must do in order to form a sole proprietorship. Select a legitimate name for your company first. You must register a DBA if you wish to use a name different than your legal name. Next, get any licenses and permits your firm needs. Depending on the kind of business you have and where it is located, several licenses and permits are needed. You can inquire about the necessary licenses and permits with your local municipal or county authority.
Obtaining any required tax registrations and identification numbers is the last step. This includes applying for a federal tax identification number (commonly known as an Employer Identification Number, or EIN), as well as a California state tax identification number.
Depending on the kind of business you operate and where it is located, you could also require a business license in California. To learn if you require a business license and how to apply for one, you can contact your neighborhood municipal or county authority.
Conclusion: In California, a sole proprietor may not require a DBA if they are operating under their legal name, but it may be required if they are using a name different than that name. Additionally, creating an LLC helps shield business owners from personal liability, and a DBA can be used in conjunction with an LLC to operate under a different name. You must select a legitimate business name, get any appropriate licenses and permits, and register for tax identification numbers in order to establish a sole proprietorship in California.
Yes, a DBA may have a minimum of two owners. A DBA (Doing Business As) is a made-up name that a company uses and which is different from the owner’s legal identity. Anybody, regardless of the number of owners, can register a DBA. It is crucial to remember that all owners will share in the company’s legal and financial obligations.