How to Register a Business Name in California - howtostartabusinesscalifornia.com

Do I Need to Register My Business Name in California?

Before anything else, you may be wondering, “Can I start a business without registering it in California?” The answer is: Yes and no, it depends on what kind of business you’re starting.

You don’t always have to register your business name in California, but that only applies to sole proprietorships, freelancers, and other solo entrepreneurs. Even in these cases, it never hurts to register your business name because it can help you with marketing and branding.

On the other hand, if you have a limited liability company (LLC), partnership, limited partnership, or corporation, you’ll have to register your business name.

Can a Foreigner Start a Business in California, and Does It Change the Registration Process?

While California allows foreign businesses to operate in the state, the business name needs to be registered with the California Secretary of State to be formally recognized. Otherwise, you’ll run into trouble along the way and might be liable for fines or penalties. This even applies to foreign businesses that use a fictitious name in California.

How to Register Your Business Name in California in 8 Steps

Registering your business in California has never been easier. The California Secretary of State offers plenty of online resources to help you from the reservation process to the formal registration process.

That said, you need to put some time into your business name, plan out how you want to move forward, and know what legal structure you’re going to choose.

For these reasons, we always recommend following the steps we cover below to register your business name in California the right way. These steps are:

Step 1: Choose a Legal Entity for Your Business

First and foremost, you have to decide what type of business you want to be. Typically, there are four types of businesses you can choose to register in California. These include:

Sole Proprietorships: A structure where there is one single owner of the business; ideal for small businesses and freelancers
Partnerships: Two or more individuals own the business and have to handle finances, responsibilities, and legal obligations
Limited Liability Company: Combines the legal liability protection from corporations with the flexible structure of partnerships
Corporation: A legal entity that exists separately from shareholders and has a board that has to agree on how the company should move forward

There are basic descriptions of what these legal entities are, so there may be some more differences depending on your specific industry.

Once you know what legal entity you plan to go with, you can check to see if you even have to register your name in the first place.

Step 2: Determine if You Have to Register Your Business Name in California

The first part of the process starts with determining if you need to register your business name in California. This is because not all businesses have to register their name with the California Secretary of State. Registering your name tends to apply to businesses that have a defined legal structure, like an LLC.

If you’re a freelancer or someone starting a sole proprietorship, there’s a good chance that you don’t need to register your name – unless you’re filing for a DBA (more on that later). So, you can get by without filing any additional paperwork.

On the other hand, if you have an LLC, corporation, or other legal structure, registering your business name is important. Not only does it help you look legitimate and remain compliant, but it also comes with some legal benefits. You can:

Prevent other people from using the name
Open specific bank accounts with the name of the business
Appear credible to vendors and the general population
Trademark your name and other names associated with your business

Aside from these benefits, you also get branding rights when you register your business name in California. For these reasons, we always recommend doing so to prevent any problems down the line, even if you’re a sole proprietor.

Step 3: Choose a Business Name

The fun part of the process is choosing your business name. This is where you have some creative freedom to name your business how you want. The California Secretary of State is pretty liberal when it comes to names that it allows, so you shouldn’t have to worry about running into any problems.

When it comes to choosing a business name we have a few tips that can help. These include:

Keeping your business name simple and easy to pronounce
Make sure your business name is appropriate
Keeping your business name in line with your branding ideas
Think of how you can market the name before you make any final decisions
Choose a name that won’t go out of style – don’t base it on trends

Choosing a business name is important, so take your time with this part of the process. Once you have some ideas you can start reserving the name and checking to see if it’s available.

Step 4: Make Sure the Business Name Is Available

The next part of the process is to ensure that the business name you want is available. Unfortunately, many business names are already in use in California, with hundreds of new businesses being opened each year. For this reason, you need to check the California Secretary of State database to ensure that your name is available.

The database is easy to use and only requires you to enter the name you’re looking for. From there, the database will come back with any matches for the name that you entered. The database works by scanning the name against existing registered names from LLCs, LLPs, and other legal entities.

Running a search with this database is an essential part of the process, but it’s not always good enough. For example, it might not reveal information about fictitious names. Additionally, you might not have access to trademark information, so while your name might look like it’s available, it could have been trademarked already.

The good news is that we have plenty of resources to help you learn more about California business name availability, so you don’t have to worry about going at it alone.

Step 5: Create a California Secretary of State Account

The next step is a simple and proactive one. While you don’t have to do this right away, we recommend creating an account with the Secretary of State sooner rather than later. It allows you to have most of the necessary paperwork filled out before you apply to register the name. This will speed things up for you later.

To create a California Secretary of State account, all you have to do is visit their website and select Sign Up. From there, you can follow the necessary steps and fill out the right forms to create an account and begin the business name reservation process.

Step 6: Reserve Your Business Name

The California Secretary of State allows you to reserve your business name for 60 days, and we recommend doing this, even if you don’t start your business right away. Not only does it give you time to get things started, but it gives you the peace of mind that the name is available and ready for you.

The California Secretary of State has resources to help you do this by mail but you can also reserve the name online. This process is simple and if the business name is available you shouldn’t have any issues reserving the business name.

You shouldn’t stop there, though. We offer more resources to help you learn how to reserve your business name in California because you should also consider trademarks, fictitious names, and DBAs.

Step 7: Register Your Domain

Domain registration is something that tends to get overlooked, but it’s more important than you may think. A domain is something you use to bring your business online, which is basically a requirement in the modern world we live in. Not only does being online help your customers find you, but it helps your company come off as more legitimate.

Domain registration is affordable, so you don’t have to worry about spending a ton of money on the process, with the average cost being about $12. We recommend reserving .com, .org, and other endings you may want.

Even if you don’t plan on taking your business online, if you change your mind in the future and someone already has the domain, you can be in trouble.

Many platforms like GoDaddy and CloudFlare have tools that can help you determine if the domain is available. We recommend searching these databases when you start searching through the California Secretary of State’s database.

Step 8: Register Your Business Name

The next part of the process is registering your business name. This is when you have to submit the necessary paperwork for approval by the California Secretary of State. There are two routes you can go when registering your business name, so the steps for this process vary depending on your business structure.

Learn more about both methods below.

How to Register an LLC, Corporation, or LLP

First and foremost, we’ll start with how to register an LLC, LLP, or corporation’s business name. When you want to form a legal structure for your business in California, it’s not as simple as choosing the name and submitting some paperwork.

Instead, you have to make sure the name is available, check for trademark infringement, and submit the name for approval with your articles of organization or articles of incorporation. Once the state approves this name you’re all set and you can start using it.

There are some rules you have to follow when naming your LLC or corporation. LLCs have to have something that tells the public it’s an LLC in the name. Typically, it’s an abbreviation of a limited liability company tacked on to the end of the name. For example, it might look something like: My Business LLC.

For corporations, on the other hand, the process is similar but with different identifiers. Corporations need to have incorporated, inc., corp, or corporation attached to the end of the name.

How to Register a Fictitious Business Name in California

Businesses that don’t have a clearly defined legal structure or a business from another state that’s moving to California can use a fictitious name. These are also known as DBAs, or Doing Business As.

These are names that are associated with the company but not the person’s legal name. For example, if John Doe wanted to expand Doe Industries into housing under Premier Real Estate, the business would need to register a fictitious name to do so.

The process for registering a fictitious name isn’t challenging and can be done in a few quick steps that we list below.

Check to see that the name is not in use
Complete the necessary DBA paperwork for the county you plan on doing business in
Submit paperwork with the articles of organization, articles of incorporation, or ownership/operation specifics
Publish your fictitious name in a local newspaper

In California, fictitious names are handled at the county level, so you have to register this name in each country – not at the state level.

How Much Does It Cost to Register a Business Name in California?

The cost to register a business name is about $70 in California. This is because you pay for the name when you file your articles of organization, which costs $70 for an LLC.

The price will jump up to about $100 for a corporation because it costs around $100 to file the articles of incorporation. California also charges a $26 fee for registering a DBA (fictitious name), so keep this in mind as well.

Ultimately, expect to pay around $70 to $100 to register your business name unless you’re a sole proprietorship.

Registering the name is only part of what it costs to start a business in California. We recommend understanding exactly how much it costs to start a business in California before you reserve and register your business name.

For example, if you plan on starting an LLC in California you’ll have to pay the $800 franchise tax. Do you have to pay the $800 California LLC fee every year, though? Unfortunately, as an LLC, there’s no way around this fee after the first year.

How to Register a Business Name for Free?

Unfortunately, there’s no way you can register a California business name for free. It’s a county-based fee that you have to pay. Additionally, you have to pay to have the business name printed in the newspaper, so keep this in mind as well.

Even if you’re a foreigner with a registered business in a different state, you still have to register that name in California.

Register Your Business Name in California Today

Registering and reserving your business name is an essential part of the business formation process. Plus, if you’re anything but a sole proprietorship you’re legally obligated to register your business name. This applies to foreign and local businesses in California.

While it may seem like another thing to add to your long checklist for starting a business in California, it doesn’t have to be difficult. As long as you follow the steps that we covered in this article you shouldn’t have any problems registering your business name in California.