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What does California call a DBA, and how do I file one for Lee Consulting?
Lee asked: “I want to start a DBA for my consulting business. I'm not selling goods, just consulting, and I'm already registered as an LLC. What step is first, the DBA or the business license?”
Hi Lee, congratulations on Lee Consulting! In California, registering "Lee Consulting" comes first, and the state calls that filing a Fictitious Business Name Statement. Below you will find how California treats a business name, whether a newspaper notice is involved, and the other registrations Lee Consulting needs.
The DBA usually comes first, and it matters here: because your LLC is already registered, using Lee Consulting as a trade name needs a Fictitious Business Name Statement in California unless it is the exact LLC name. Publication comes next, in a newspaper of general circulation once a week for four weeks starting within 45 days of filing, and the filing is not complete until proof of publication is filed. After that, the business license paperwork will ask for the registered name, so it makes sense to file in that order. Your LLC already gives you liability protection, which the DBA does not.
How California handles a business name
In California, a business name other than your own legal name is registered as a Fictitious Business Name Statement, which you will also hear called FBN, DBA, or fictitious name. A sole proprietor, partnership, LLC or corporation doing business under a name that differs from the owner's or entity's exact registered name (or that suggests additional owners) must file one within 40 days of starting to use the name. A sole proprietor using their own full name needs nothing.
Newspaper publication: California requires the statement to be published in a newspaper of general circulation once a week for four weeks, starting within 45 days of filing, and the newspaper's proof of publication must then be filed within 45 days after the last notice. The filing is not complete until that is done.
How long it lasts: A statement expires after five years and has to be refiled before then, and most changes to the facts on it call for a new statement.
What Lee Consulting needs
- Fictitious Business Name Statement – Register "Lee Consulting" before you use it on signs, invoices, and your business bank account. Most banks will not open an account or deposit checks made out to a trade name until it is registered to you. Because a newspaper notice is part of the process here, the registration is not complete until it has run.
- Name check – Choose a name that is easy to spell and not confusingly close to a business already operating nearby. Registering a DBA announces your use of the name, but only a trademark gives you exclusive rights to it.
- LLC (limited liability company) – A DBA creates no separate legal entity and no liability protection; an LLC keeps business debts and lawsuits separate from your personal home and savings. If a client blames your strategy for a failed fundraising campaign and sues for lost donations, an LLC keeps your personal savings out of the dispute. If you form the LLC under the exact name Lee Consulting LLC, the LLC filing itself protects that name and you will not need a separate DBA for it. Non-US residents can own an LLC too; the EIN application simply follows a different path.
- EIN (federal tax ID number) – You plan on 5 employees, so the federal tax ID number (EIN) is required for payroll, and you will use it for the business bank account opened in the registered name.
- California seller's permit – A pure service usually is not taxable, so you may not need it. If you also sell products, supplies, or gift cards, register before the first sale.
- California employer ID – With 5 employees, you need a state employer account number for payroll withholding and unemployment insurance. It works like the EIN, but for state payroll taxes.
- Business license – Governments license businesses so they can collect a modest tax and keep inspectors checking safety. Plan on a local business license for Lee Consulting in Santa Barbara.
By the numbers: Banks, insurers, and tax forms will ask for your industry code. For a consulting business it is NAICS 541611 (Administrative Management and General Management Consulting Services). With 5 employees planned, you are already creating jobs in Santa Barbara. That makes 7 items on your list.
Tip: Consider professional liability insurance, since claims of bad advice are the most common risk for consultants.
To recap: Lee Consulting in Santa Barbara, CA needs a Fictitious Business Name Statement, a name check, an LLC, an EIN, a state employer ID, and a business license. Check them off one by one and you will open with confidence.
We can file your business name registration and the other paperwork for you: start here. |