How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Roger Your Own Question
Roger, Attorney
Category: Business Law
Satisfied Customers: 30904
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
Type Your Business Law Question Here...
Roger is online now
A new question is answered every 9 seconds

I own a construction company and am trying to start another

This answer was rated:

I own a construction company and am trying to start another branch of the company under a different name. Do I need to start a new company and file with the state? Or can I just do DBA, and how does that work?
Hi - my name is XXXXX XXXXX I'm a Business litigation attorney. Thanks for choosing JA! I'll be glad to assist you.

You can actually do this either way - - it just depends on how you want your two operations to be related. IF you have a DBA, then all of the money from both businesses would be pooled together and used to pay the expenses of all companies, and all assets would be interchangeable, etc. Also, and maybe most importantly from a legal standpoint, is that the legal liability would attach to both if suit was file for some negligent act, construction defect, etc. In other words, if your current business or DBA was sued, BOTH would be implicated.

However, if you set up a new, separate DBA, then it would be a separate legal entity and would have separate liability for anything that occurred.

Thus, from a legal standpoint it is usually a good idea to have separate legal entities to protect one from the other, keep the assets separate, etc. However, you can do this legally either way - - as a DBA or as a new LLC, but a new LLC is likely the best option.
Roger and other Business Law Specialists are ready to help you

Related Business Law Questions