Key Takeaways

  • A DBA (Doing Business As) in California is required when a business uses a name different from its legal entity name.
  • Sole proprietors, LLCs, partnerships, and corporations must file a Fictitious Business Name (FBN) if operating under a different name.
  • Filing is typically done through the county clerk where the business operates.
  • After filing, a notice must be published in a local newspaper for 4 consecutive weeks.
  • Failing to register a DBA can result in fines, the inability to enforce contracts, and other penalties.
  • Foreign and out-of-state entities must comply with California’s Revenue and Taxation Code when doing business in the state.

In order to be doing business in California, you will need to legally incorporate in the state. Special rules apply to foreign countries doing business in California, based on the Revenue and Taxation Code (R&TC) section 23101, which states that you are required to register your business if:

  • You engage in transactions with the purpose to make profit in California
  • Your business is organized, as well as commercially domiciled in California
  • You have sales originated in California exceeding $500,000
  • If you have real estate or property assets in the country exceeding $50,000 or 25 percent annually
  • If you pay compensation over $50,000 annually in California

How to Register a Business in California

By law, you need to register your business in the state of California to start doing business. Every corporation and LLC will need to pay a franchise tax to trade in the state, according to the California Franchise Tax Board.

The franchise tax of $800 applies to the following companies:

  • Organized and incorporated in California
  • Doing business in California
  • Foreign companies registered to do business in California

It is important to note that out of state businesses that have less than the above threshold sales and property interest in California might still need to register, as they can be considered as doing business in California.

How to File a DBA in California

Filing a DBA in California involves several county-level steps:

  1. Determine the County: File in the county where your principal business is located.
  2. Check Name Availability: Search the county’s fictitious business name index.
  3. Complete the FBN Statement: Submit it to the county clerk's office, either online or in person.
  4. Pay the Filing Fee: Fees typically range from $40–$60 depending on the county.
  5. Publish the DBA: Within 30 days of filing, publish a notice in a legally adjudicated newspaper once a week for 4 consecutive weeks.
  6. File Proof of Publication: Submit an affidavit of publication to the county clerk (in most counties).

The DBA is generally valid for five years and must be renewed before expiration.

When You Need a DBA (Doing Business As) in California

In California, a business must file a DBA—also called a Fictitious Business Name (FBN)—if it operates under a name that does not include the owner’s surname (for sole proprietors) or if it differs from the official name registered with the Secretary of State (for LLCs, corporations, or partnerships). Common examples include:

  • A sole proprietor named Jane Smith operating as "Sunrise Catering"
  • An LLC named "Blue Horizon Enterprises, LLC" doing business as "BHE Consulting"

Filing a DBA does not provide exclusive name rights, but it fulfills the legal requirement for public disclosure and transparency.

Is Your Out-of-State LLC “Doing Business” in California?

If you have an out-of-state LLC, and you carry out business activities in California, you are liable to paying business tax in the state.

If you invest in a business, for example a limited liability company,  you may be obliged to file tax obligations, even if your main business is not located in California.

When determining tax liabilities in California, the Board takes into consideration where the acceptance of sales takes place. As an example, if your company is located out-of-state, but you have agents conducting business in California on your behalf,  you will still need to register and pay the tax.

Penalties if Failing to Comply with Legislation when Doing Business in California

According to the California Corporations Code, if you fail to register with the California Secretary of State and you engage in any transaction that has the sole purpose of financial gain or profit, you will face a penalty of $2,000 for each tax year your LLC was doing business in California.

If you don't file a tax return in the state, and you still do business in the state, you will need to pay the missed taxes due and the fees as well.

In case you are unsure whether your out-of-state LLC needs to file tax returns in California, you should get in touch with a qualified business law professional who can guide you on the California Corporations Code.

Whether or not you are required to file taxes in the state is determined by the FTB. If your LLC needs to pay a penalty, you will be notified through a written demand letter.

Consequences of Not Filing a DBA

Failure to file a required DBA in California can lead to:

  • Inability to Enforce Contracts: Courts may not recognize business contracts made under an unregistered name.
  • Fines and Penalties: Counties can impose financial penalties for non-compliance.
  • Legal Liability: Misleading consumers or partners may expose you to fraud claims.

Always ensure DBA registration is completed before doing business under a fictitious name.

Examples of Doing Business in California: The Swart Case

In the past, the FTB has filed cases against companies that did business in California and did not comply with their tax obligation. As an example, Swart Enterprises, an out-of-state company from Iowa owned a 0.2 percent interest in a California investment fund. They paid their taxes and requested a refund.

The ruling of the FTB stated that Swart pays the minimum of $800 tax, as well as the penalties and interest. As the company had an interest in a California fund, they were required to file a tax return.

Exemptions of Taxation

You can apply to be exempt from California tax if you have an out-of-state status if you meet some special requirements. If you don't transact interstate business, you might need to talk to a California corporate lawyer who can advise you on getting an exempt status from the FTB.

DBA vs. Legal Business Name in California

A DBA is not a separate legal entity; it is simply an alias for your existing business structure. It does not:

  • Provide liability protection
  • Create a new business for tax purposes
  • Protect your name statewide (unlike a trademark or state-registered name)

Businesses must still maintain their entity registration with the California Secretary of State and comply with tax obligations under their legal name.

What if my company is an international franchise?

If your revenues from doing business in California account for at least 25 percent of your total income, or are above $500,000, you will need to register your business in the state.

Frequently Asked Questions

  1. What is a DBA and who needs one in California?
    A DBA (Doing Business As), also called a Fictitious Business Name, is required if a business operates under a name that does not include the full legal name of the owner or registered entity.
  2. Where do I file a DBA in California?
    You file a DBA through the county clerk's office in the county where your principal business location is based.
  3. How much does it cost to file a DBA in California?
    Costs vary by county but generally range from $40 to $60, plus additional fees for name publication and renewal.
  4. Do I need to publish my DBA?
    Yes. Most counties require a DBA notice to be published in a local newspaper once a week for 4 weeks and proof of publication to be submitted.
  5. Does a DBA protect my business name statewide?
    No. A DBA only allows you to operate under a different name; it does not grant exclusive rights or prevent others from using a similar name.

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