LLC vs Corporation vs DBA in California: Which One Do You Need?
The three most common ways to set up a small business in California, what each one costs to file, and how to choose. Updated October 13, 2026.
If you are about to start a business in California, you will hear three terms right away: LLC, corporation and DBA. They are not three versions of the same thing. An LLC and a corporation are legal entities you form with the California Secretary of State. A DBA is just a name you register so you can do business under it. Here is how they compare, with the filing fees the state lists today.
This guide is general information, not legal or tax advice. California New Business Bureau is a private filing service. We are not a law firm and not a government agency. For legal or tax questions, talk to an attorney or CPA.
The short version
- LLC: the usual choice for owners who want personal asset protection with simple paperwork.
- Corporation: a better fit if you plan to issue stock, bring in investors or want a more formal structure.
- DBA: the quickest and least expensive way to use a business name, but it does not create a separate entity or protect your personal assets.
LLC (limited liability company)
An LLC is a separate legal entity. In general, it separates your personal assets from the business's debts and lawsuits, though not from your own wrongdoing or from anything you personally guarantee. Profits and losses pass through to the owners' personal tax returns by default, and an LLC has fewer formal requirements than a corporation.
- State filing fee: $70 for the Articles of Organization, filed online with the Secretary of State.
- Statement of Information: $20, due within 90 days of forming and every two years after that.
- Annual tax: every LLC organized or doing business in California owes the Franchise Tax Board an annual tax of $800, even if it has no income. The first-year exemption only applied to tax years that began from 2021 through 2023, so a new LLC should plan to pay it.
- LLC fee: if the LLC makes more than $250,000 in California income, an additional fee applies, starting at $900.
See our LLC formation service.
Corporation
A corporation is also a separate legal entity, owned by shareholders and run by a board of directors and officers. It has more formalities, including bylaws, meetings and records, but it can issue stock, which matters if you plan to raise money from investors. A corporation can also elect S-corporation tax treatment in some cases. That is a tax decision, so ask your CPA.
- State filing fee: $100 for the Articles of Incorporation of a general stock corporation, filed online.
- Statement of Information: $25, due within 90 days of forming and every year after that.
- Franchise tax: the Secretary of State notes that most businesses pay a minimum franchise tax of $800 each year. Your own situation, including the first year, depends on how and when you incorporate.
See our incorporation service.
DBA (fictitious business name)
A DBA, short for "doing business as," lets you operate under a name that is not your own legal name. It is a name registration, not a legal entity. A sole proprietor with a DBA is still personally responsible for the business. An LLC or corporation can also use a DBA to operate under a different name than the one it was formed with.
- County filing fee: in Orange County, $23 for one business name and one registrant, plus $7 for each additional name.
- Publication: the statement must run once a week for four consecutive weeks in a legally adjudicated newspaper of general circulation in the county. In Orange County, the first publication must happen within 45 days of filing, or the statement expires and you start over.
- Where to file: in the county of your principal place of business. Fees and rules differ by county, so check yours.
- How long it lasts: a fictitious business name statement is valid for five years from the end of the year it was filed.
See our DBA filing service.
How to choose
- You are just starting out and want to use a business name: a DBA may be enough, as long as you understand it gives you no liability protection.
- You have customers, equipment or employees and want a layer of protection: an LLC is the usual starting point.
- You expect to issue stock or take on investors: talk to an attorney or CPA about a corporation.
- You already have an LLC or corporation but want to trade under another name: you can add a DBA to it.
Do not forget these
Forming the entity is only the first step. Most owners also need a federal EIN, any city or county business licenses, and a sales tax permit if they sell taxable goods. California also requires a registered agent for LLCs and corporations. See our pages on licenses, permits and EIN and registered agent service. The fees above come from the California Secretary of State, the Franchise Tax Board and the Orange County Clerk-Recorder as of October 2026, and they can change, so confirm them before you file.
If you are in Santa Ana or anywhere in Orange County or Los Angeles, you are welcome to come in. See our Santa Ana office page. We also file for owners in all 50 states.
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Not sure which one fits?
Call us or request a free consultation. We will explain what each filing involves and what it costs, so you can decide with the facts in front of you.