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rvlaw, Attorney
Category: Business Law
Satisfied Customers: 8386
Experience:  NYC Trial Attorney 30+ years; Law professor ; BUSINESS LAW; CONTRACTS; TORTS; Arbitrator
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I have a company I do business with, I am an authorized dealer

Customer Question

I have a company I do business with, I am an authorized dealer of this company. They have put incentives in, that I like however they want me to change to a DBA of that company. The question I have for you is, if I do this DBA do I lose ownership of my company? If so can I protect my company with language in a contract. How do i exercise that language and move back from the DBA to an Scop.

Basiclly the company I do business with wants me to enter into a DBA of that company utilizing incentives, however at some point I am going to want to take back my company to file an Scorp with no issues.
Submitted: 5 years ago.
Category: Business Law
Expert:  rvlaw replied 5 years ago.

Hi and welcome

What they are suggesting makes no sense whatsoever. DBA is a term used by ABC, Inc. that wants to be known as Main Street Cafe. The corporate file says ABC,Inc dba Main Street Cafe, but the customers of the cafe don't know anything about the legal corporate situation that the company is registered with the state as ABC Inc.

What they are suggesting is absurd. You have a company. ABC Inc. (the company of which you are a dealer) is NOT DOING BUSINESS AS THE NAME OF YOUR COMPANY. Your company is your independent company. ABC can't take your company over so there's no issue of your taking it back.

Now if you want to work out some kind of joint venture ....two separate companies; or form a new corporation comprised of the two.....those things are something else and would take a whole discussion of how to set up those other options.

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