Key takeaways
- A DBA only registers a business name; an LLC is a separate company that can shield your personal assets.
- Forming an LLC costs $70, plus $20 for the Statement of Information, and every LLC owes at least $800 a year in California tax.
- An LLC that trades under a different name still needs a DBA in its home county.
People often ask "should I get a DBA or an LLC?" as if they were two versions of the same thing. They aren't. A DBA (fictitious business name) only registers a name. An LLC creates a separate company that can protect your personal assets. Many businesses end up with both.
The short version
| DBA (fictitious business name) | LLC | |
|---|---|---|
| What it is | A public record of the name you trade under | A separate legal entity you own |
| Filed with | Your county clerk | California Secretary of State |
| Protects personal assets? | No | Generally yes, if you keep business and personal finances separate |
| Upfront government cost | County filing fee (set by each county, e.g. $26 in Los Angeles and $90 in San Bernardino) plus newspaper publication (varies by paper) | $70 Articles of Organization (Form LLC-1) plus $20 Statement of Information |
| Yearly cost | None until renewal every 5 years | $800 annual tax every year, including the first (the 2021–2023 first-year exemption has ended), plus an LLC fee once total California income reaches $250,000 |
| Taxes | Reported on your personal return | By default taxed like a sole proprietorship (one owner) or a partnership, unless you choose otherwise |
LLC taxes and fees in more detail
- $800 annual tax (Form FTB 3522): a new LLC's first payment is due by the 15th day of the 4th month after it files with the Secretary of State. For example, an LLC formed on June 19 pays by September 15. After that it's due each year by the 15th day of the 4th month of the tax year (April 15 for most LLCs).
- LLC fee (Form FTB 3536), based on total California income:
| Total California income | Extra LLC fee |
|---|---|
| Under $250,000 | $0 |
| $250,000 – $499,999 | $900 |
| $500,000 – $999,999 | $2,500 |
| $1,000,000 – $4,999,999 | $6,000 |
| $5,000,000 or more | $11,790 |
The estimated fee is due by the 15th day of the 6th month of the tax year (June 15 for most LLCs), and underpaying the estimate carries a 10% penalty. Fee figures are from the Franchise Tax Board's LLC pages and 2025 Form 568 instructions; check the current year's booklet before you file.
When a DBA alone is enough
A DBA on its own can make sense if you're a sole proprietor testing an idea, your work carries little risk of being sued, and you mainly need a business name so customers can pay "Lopez Landscaping" and your bank will open an account in that name.
The trade-off: if the business is sued or can't pay a debt, your personal savings, car and home equity are exposed, because legally you and the business are the same person.
When an LLC is worth the $800 a year
Consider an LLC if:
- your work could cause injury or property damage (contracting, food, transport, events);
- you sign leases, take on equipment financing or hire employees;
- you have business partners; or
- clients, landlords or platforms ask you to contract as an entity.
The protection isn't automatic. Courts can ignore an LLC ("pierce the veil") if owners mix personal and business money or undercapitalize the company. Unlike corporations, California LLCs aren't held liable just for skipping meetings or formalities, unless their own articles or operating agreement require them (Corp. Code §17703.04(b)). Open a separate business bank account and sign contracts in the LLC's name.
Insurance matters as much as structure: general liability and, if you have employees, workers' compensation. If you hire, see Hiring and compliance for the employee vs contractor rules.
When you need both
If your LLC trades under a name that isn't its exact registered name (for example, "Sunrise Ventures LLC" doing business as "Sunrise Coffee"), California requires the LLC to file a DBA for the trade name in the county where its principal place of business is located (Bus. & Prof. Code §§17900, 17910, 17915).
Step by step
- Decide the structure (sole proprietor, LLC, corporation). If you're unsure, talk to a CPA about taxes and a lawyer about liability.
- If you form an LLC, file Form LLC-1 online through the Secretary of State's bizfile portal, then the Statement of Information (Form LLC-12, $20) within 90 days, and again every two years.
- If you trade under any other name, file a DBA with your county: see how to file a DBA in California.
- Get an EIN from the IRS (free) if you have employees or an LLC with more than one member.
- Check whether you need a seller's permit (CDTFA) and a city or county business license.
Worked example: first-year government costs
These figures use only the state and county fees above. They leave out insurance, accountants, lawyers and local licenses.
Option 1: sole proprietor with a DBA in Los Angeles County
| Item | Cost |
|---|---|
| County DBA filing fee | $26 |
| Newspaper publication | Varies by paper; get quotes |
| First-year total | roughly $56–$226 |
| Yearly cost after that | $0 until renewal in year 5 |
Option 2: single-owner LLC formed June 19, trading under its own registered name
| Item | Cost | When |
|---|---|---|
| Articles of Organization (Form LLC-1) | $70 | At formation |
| Statement of Information (Form LLC-12) | $20 | Within 90 days |
| Annual tax (Form FTB 3522) | $800 | By September 15 |
| LLC fee, if total California income is under $250,000 | $0 | — |
| First-year total | $890 |
If that LLC also trades as "Sunrise Coffee" in Los Angeles County, add the DBA filing fee and publication from Option 1. After the first year, the LLC owes the $800 tax every year, plus the $20 Statement of Information every two years.
Frequently asked questions
Is a DBA the same as an LLC?
No. A DBA only registers the name you trade under with your county. An LLC is a separate company registered with the Secretary of State that can shield your personal assets from business debts and lawsuits.
Does a DBA protect my personal assets?
No. With only a DBA, you and the business are legally the same person, so your personal savings, car and home equity are exposed if the business is sued or can't pay a debt. An LLC can offer that protection, if you keep business and personal finances separate.
How much does an LLC cost per year in California?
Every California LLC owes at least $800 a year in tax, including the first year. An extra LLC fee applies once total California income reaches $250,000, starting at $900. The $20 Statement of Information is due every two years.
Is the $800 LLC tax waived for the first year?
No, not anymore. The first-year exemption covered 2021 to 2023 and has ended. A new LLC's first $800 payment is due by the 15th day of the 4th month after it files with the Secretary of State.
Does an LLC need a DBA in California?
Only if it trades under a name that isn't its exact registered name. For example, "Sunrise Ventures LLC" trading as "Sunrise Coffee" files a DBA in the county where its principal place of business is. See how to file a DBA.
Can I start with a DBA and form an LLC later?
Yes. Many owners start as a sole proprietor with a DBA and form an LLC as the business grows. If the new LLC keeps trading under the old name, it files its own DBA, because the owner listed on the statement has changed. A statement ends 40 days after a change in the facts it lists, such as a new owner.
Sources
We use primary sources: statutes, court rules, official forms and government pages. Read our editorial standards.
- California Secretary of State: Business entity forms and fees and Statements of Information
- Franchise Tax Board: Limited liability company
- County DBA fees: Los Angeles, San Bernardino
- Business and Professions Code §§17900–17930 (fictitious business names)