Hello, this is Attorney Elizabeth Potts Weinstein. Today, we’re discussing how to close a DBA (Doing Business As) in California.
A DBA, or "doing business as," is a registration for conducting business under a name different from your legal name. For sole proprietorships, this might be a brand name different from your personal name. For partnerships, it could be a name other than the partners' names. In some states, it includes just the last name of a partner; in others, it requires the full name. In California, it must include the last name. LLCs and Corporations can also have DBAs, which are names different from their official LLC or Corporation names, including LLC, Inc., or Corp.
In California, a DBA is officially known as an FBN (Fictitious Business Name) registration. The process involves filing with your county and publishing the name. However, circumstances may arise where you need to close your DBA, such as selling the business, changing the legal entity, or shutting down the business entirely.
Reasons to Close a DBA
- Selling the Business: If you're selling your business but not the legal entity, you'll need to close the DBA.
- Partnership Changes: If a partner leaves the business, their name should no longer be associated with the DBA.
- Entity Changes: Transitioning from a sole proprietorship to an LLC requires closing the DBA.
- Business Closure: If you're shutting down your business, you'll need to close the DBA.
Automatic Expiration and Formal Closure
In California, DBAs automatically expire after five years if not renewed. However, for legal and liability reasons, it's best to formally close the DBA if you're no longer using it. This avoids any potential legal issues from the DBA being used by someone else.
How to Close a DBA in California
To formally close your DBA in California, you need to file a Statement of Abandonment. Here’s how:
- Obtain the Form: Get the Statement of Abandonment form from your county's clerk office or website.
- Complete the Form: Include your fictitious business name, address, filing date, file number, and the name of the registrant (owner). For sole proprietorships or partnerships, list the individual names. For LLCs or Corporations, list the entity name.
- File the Form: Submit the form in person, by mail, or online (where available). Some counties allow online submissions, while others require in-person filing.
- Pay the Fees: There will be a filing fee, which varies by county.
- Publish the Notice: You must publish the abandonment in a legal newspaper. This serves as public notice that the DBA is no longer in use.
Example: Santa Clara County
In Santa Clara County, the process is straightforward. Obtain the Statement of Abandonment form, complete it with the necessary details, and file it with the county clerk. Pay the filing fee and ensure the abandonment notice is published in a legal newspaper.
Using a Service for DBA Closure
For convenience, consider using a service like DBAstore.com. They handle all aspects of the process, including filing and publishing. Although their website might look outdated, they are efficient and cost-effective.
Cost Example
For Los Angeles County, DBAstore.com charges $55 for publishing and $26 for filing. Prices may vary by county, so contact them directly for an accurate quote.
Conclusion
Closing a DBA in California involves filing a Statement of Abandonment and publishing a notice. It’s essential to complete this process to avoid any future legal complications. For assistance, services like DBAstore.com can simplify the process.
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