Forums: Discussions for entrepreneurs and small business.

Hello, I have an established LLC partnership with several DBA`s listed under it in the state of Washington. My question is...I am opening another business that will be solely owned by me. Can I use the DBA and create an addendum so this DBA  would not fall under the 50% ownership or would I be better off creating a new LLC for this DBA?

The new business will be a retail outlet and I will need to be signing lease papers. I want to make sure that the lease papers if I use my current LLC do not obligate my 50% partner in any way.

As always, THANKS!

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Kathaleen All Natural Specialty Sauces and Crepe Maker Extraordinaire www.riverhousecreations.com

I would not trust any answer to this question that you are going to get over the internet - unless it is from a lawyer in your state.

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James Lindon, Ph.D. Patent Attorney
Lindon & Lindon, LLC
Cleveland, Ohio
Patents, Trademarks, Copyrights, Pharmacy Law, Litigation
[this is not legal advice - provided for discussion only]
Intellectual Property for the Individual and Small Business: Identify, Protect, Enforce, Defend.
"Fools rush in where angels fear to tread."
http://www.LindonLaw.com

I plan on researching but I was curious about in general if anyone had experience with this question. Thanks for your reply :)

 

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Kathaleen All Natural Specialty Sauces and Crepe Maker Extraordinaire www.riverhousecreations.com

an LLC Partnership means that everyone gets a cut of the profits from all assets owned by the company. So I would just create a new LLC, its not like thats so expensive to do

Riverhouse,

I agree with patentandtrademark that you should always consult with an attorney in your own state before establishing a new business either as a dba of an existing LLC or as a new entity.  The legal requirements and characteristics of an LLC vary greatly state to state.

That said, from a federal tax standpoint, unless you and your existing partner wish to role up the income and expenses of the new business with their accompanying tax costs/benefits with the other businesses (dba`s), establishing a separate LLC (or other entity) may be wise and a lot less messy.

If you have trouble qualifying for a commercial lease with the brand new entity (some commericial lessors require at least 1 year in business) and need to use the existing LLC for credit purposes, make sure you and your partner explicitly agree to the arrangement and your operating agreement is amended accordingly with an eye to possible tax consequences (your attorney can assist you with this).

Good luck with the new endeavor!

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Brian M Lewis, Certified Public Accountant www.brianlewiscpa.com Information provided for discussion purposes only. Always consult your own CPA for advice specific to your situation prior to making tax decisions.

I would just start a new LLC, to separate your new business venture....

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Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net