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 Richard - Bizlaw Your Own Question

Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 8817
Experience:  30 years of corporate, litigation and international law
18695994
Type Your Business Law Question Here...
Richard - Bizlaw is online now
A new question is answered every 9 seconds

We have a Nevada corporation recently converted from C corp

Customer Question

We have a Nevada corporation recently converted from 'C corp ' to 'S corp'. Our principle location is in California and doing business in California as a foreign registered corporation. IT staffing is our business. We are venturing into general labor staffing as well. We are using the same name of business for both IT staffing and General Labor staffing. We want to separate the General labor staffing and call it different name, so that we can make clear identity for each activity we do.

The question is , can we make up a new name and call it a division of our main company?
Can we use the same EIN for both business names? Can we run separate payrolls for both these business activities separately under the same EIN?
Or
We have to register a new entity to separate it altogether and get a new EIN.
Submitted: 1 year ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 1 year ago.

Richard :

Hello, I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for. You do not need to create a new entity. You can do a fictitious name filing in Nevada and CA that creates the name for the new division. The same EIN would be the same for both divisions. You could have payroll checks issued in the name of the proper division if that is what you want to do. If I have answered all your questions, please rate my answer excellent as that is how I am compensated. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.

Customer:

Is Fictitious name same as DBA? do I need to add this new name on my insurance policies (Workers comp, general liability, E&O, umbrella policy etc.). Can I separate them for health insurance purposes only as well what I mean is can I have a separate group health insurance plan for new division? and can I use all other insurances combined without incurring additional costs of buying insurances for new entity?

Richard :

The fictitious name is XXXXX XXXXX as a DBA. You can add the DBA to your existing insurance to cover the new division. Whether you can have separate health care is a lot trickier issue because your health plan is governed by ERISA in terms of coverage and participation requirements. You should check with whoever handles your health plans to see if you have any issues about different coverage and standards for participation. If I have answered all your questions, please rate my answer excellent as that is how I am compensated. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.

Customer:

is Fictitious name /DBA one time thing or I have to do it every year?

Richard :

You only need to do it one time

Customer:

Great, I have done DBA in CA (LA county and Orange County ) before, is it a must to do it also in Nevada? I would never use this new named division in Nevada at all.

Richard :

Technically you do not have to do it in Nevada but you will lose the name in Nevada if someone else decides to take it. I would do it in Nevada just so I control the name in the jurisdictions in which you conduct business. If you build a reputation in CA you may want to expand to Nevada and someone else could take the name and the good will you have generated. In the end it is up to you.

Customer:

Thank you very much for answering all the questions so far. One last questions, is there a limit to how many divisions I can create by using DBAs?

Customer:

for one EIN?

Richard :

There is no limit on the number of DBAs and divisions you can have. If I have answered all your questions, please rate my answer excellent as that is how I am compensated. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.

Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 8817
Experience: 30 years of corporate, litigation and international law
Richard - Bizlaw and 8 other Business Law Specialists are ready to help you
Customer: replied 1 year ago.

Can I open a new bank account with only my DBA name and not the main company name?

Expert:  Richard - Bizlaw replied 1 year ago.
Generally the the account name will be the true corporate name with the DBA but the checks can just reflect the DBA name, which is what I think you want. Thank you for the excellent rating.
Expert:  Richard - Bizlaw replied 1 year ago.
Hi Dinesh,


I'm just following up with you to see how everything is going. Did my answer help?


Let me know,if you have any more questions.
Bizlaw

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
  • http://ww2.justanswer.com/uploads/DC/DCraneEsq/2012-8-14_14436_DCrane.64x64.jpg MShore Law's Avatar

    MShore Law

    Attorney

    Satisfied Customers:

    1233
    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    1162
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    1142
    Run my own successful business/contract law practice.
  • http://ww2.justanswer.com/uploads/ohioatty/2009-1-22_185545_me.jpg J.Hazelbaker's Avatar

    J.Hazelbaker

    Attorney

    Satisfied Customers:

    393
    Experienced and trained in the area of business law.
  • http://ww2.justanswer.com/uploads/scottymacesq/2009-6-10_221523_small.jpg RGMacEsq's Avatar

    RGMacEsq

    Attorney

    Satisfied Customers:

    393
    Licensed Texas General Practice Attorney
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Attorney

    Satisfied Customers:

    301
    13 years practicing attorney, MBA