CSLB Law & Business ExamBusiness Organization and LicensingEasy
A sole owner contractor wants to operate under the name "Precision Home Builders" instead of her own legal name. Before CSLB can issue the license in that name, what must she first do?
- ANothing extra is required since sole proprietors may use any trade name freely
- BForm a corporation using that name as the corporate title
- CFile a fictitious business name (DBA) statement with the county and provide proof to CSLB
- DObtain a separate license number for the trade name in addition to her personal license
Show answer & explanationAnswer & explanation
Correct answer: C. File a fictitious business name (DBA) statement with the county and provide proof to CSLB
When a sole owner does business under a name other than her own legal name, she must file a fictitious business name (DBA) statement with the county and submit proof of that filing to CSLB before the license can be issued in the DBA name.
Why the other options are wrong
- A. Using a trade name without filing a DBA violates business name registration requirements.
- B. Incorporating is unrelated to simply using a DBA as a sole proprietor.
- D. CSLB issues one license number per entity, not a separate number for the trade name.
Fictitious Business Name (DBA)
A sole owner or partnership operating under a name other than the owner's legal name must file a DBA statement with the county and provide proof to CSLB.
- Required for sole proprietors/partnerships using a trade name
- Proof of county filing must be submitted to CSLB
- License is then issued showing 'doing business as' name
Memory trick: No fake name on your license until the county says it's legit.