A fictitious business name, commonly referred to as “doing business as” (DBA), is the name by which a company operates but which is not the same as the legal name of the owner or owners. In California, the county clerk’s office in the county where the business is located is where a DBA must be filed. How long, though, is a bogus company name valid in California?
The duration of a DBA in California is five years from the date of filing, is the response. If the business owner wants to keep using the name after that, it must be renewed. To avoid any legal complications, the renewal procedure must be completed before the expiration date and is quite identical to the initial filing procedure.
Yes, self-employed people who run their businesses under a name other than their own frequently utilize a DBA. They are able to brand themselves in a way that appeals to their target market and project a more professional image. An independent author, for instance, might go under the DBA “Creative Wordsmith” instead of using their actual name. What is a DBA example, exactly? An example of a DBA is a sole proprietorship that uses “The Bakery Shop” as its name instead of the owner’s legal name. Another illustration might be a self-employed graphic designer advertising their services under the name “Pixel Perfect Designs”.
To make sure the desired name is available, the business owner must first perform a name search before filing a DBA as a sole proprietorship in California. The required paperwork must then be filled out and submitted to the county clerk’s office in the county where the company is located. Depending on the county, the filing price normally ranges from $10 to $100.
It is advised to keep a separate bank account for the business even if a DBA is not a legal entity apart from the business owner. This facilitates simpler bookkeeping and income and cost tracking for businesses. Additionally, it aids in drawing a distinct distinction between personal and business funds, which is crucial for tax purposes.
In conclusion, a fictitious business name or DBA in California must be renewed before the expiration date and is legitimate for five years from the date of filing. It is frequently used by sole proprietorships and self-employed people to present a professional image and brand themselves in a way that appeals to their target market. The business owner must fill out and submit the required paperwork to the county clerk’s office in order to file a DBA, and it is advised that they open a separate business checking account.