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Parent Company "Company A, Inc." is a hair salon. The owners

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Parent Company "Company A, Inc."...
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: 2 years ago.Category: Business Law
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Answered in 3 minutes by:
12/17/2015
Business Lawyer: Loren, Attorney replied 2 years ago
Loren
Loren, Attorney
Category: Business Law
Satisfied Customers: 35,860
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Good afternoon. I am Loren, a licensed attorney, and I look forward to assisting you.

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Business Lawyer: Loren, Attorney replied 2 years ago

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

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Business Lawyer: Loren, Attorney replied 2 years ago

Are you online with me?

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Business Lawyer: Loren, Attorney replied 2 years 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.

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Business Lawyer: Loren, Attorney replied 2 years ago

If you have no further questions please remember to rate my service so that I am credited by JA for answering your question and also so that I may close the question. Thanks.

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