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Roger
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Category: Legal
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I have an LLC and operate under a DBA. The DBA name include

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I have an LLC and operate under a DBA. The DBA name include my name and a business friend to present ourselves as partners. We share the web domain for shared email account. Every other detail however is separated. Separate clients bases, separate vendor contracting, separate bank accounts... The intention was to assist each other but never actually share in each others revenue, but still assist each other for vacation times or if one of us had an expertise the other needed.

The question is, does this other person have any legal rights to my LLC revenue's or do we share liability if one of us is sued by a client since there is an image of partnership? If so, what must be done to ensure we can assist each other and operate this way but still legally be viewed separate for revenue and liability purposes? I am a florida insurance agency.
Submitted: 1 year ago.
Category: Legal
Expert:  Roger replied 1 year ago.

Hi - my name is XXXXX XXXXX I'm a litigation attorney. Thanks for your question.

It is likely best to establish a new LLC since you have a business partner in the DBA under your current LLC.

The main reason is that you're going to have potential liabilities and revenue streams that should not be commingled under one entity's name - especially since you have a partner in a DBA. This could create issues of who is entitled to what - - and it's usually best just to try and avoid the mess altogether.

Also, limited liability protection of the LLC will only extend to the operations that it can clearly be associated with. So, if this new venture is doing things outside of the scope of the original LLC's business, that could be an issue as well.

Roger, Attorney
Category: Legal
Satisfied Customers: 26854
Experience: BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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