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Loren, Attorney
Category: Business Law
Satisfied Customers: 33057
Experience:  30 years experience representing clients .
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Parent Company "Company A, Inc." is a hair salon. The owners

Customer Question

Parent Company "Company A, Inc." is a hair salon. The owners wish to start a new subsidiary company for a hair product line and they call the new subsidiary "Company B, LLC."
Company B, LLC has a different name and a different FEIN.
Company B, LLC would like to use the name of their parent company, "Company A, Inc.", on the back of their shampoo bottles.
Is this legally permissible? And if so, is it as simple as Company A licensing their name to Company B and then Company B filing a DBA for the name?
Thank you
Submitted: 1 year ago.
Category: Business Law
Expert:  Loren replied 1 year ago.

Good afternoon. I am Loren, a licensed attorney, and I look forward to assisting you.

Expert:  Loren replied 1 year ago.

Are you going to sell shampoo under a name used by Company A?

Expert:  Loren replied 1 year ago.

Are you online with me?

Expert:  Loren replied 1 year ago.

Assuming yes, then in order to maintain corporate individuality and avoid any accusation of being an alter ego, company b should license the name formally and register it as a dba if it will be operating under that name. The state does not register fictitious business names. That is done through the county.

Expert:  Loren replied 1 year ago.

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