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mehta74
12-18-2013, 10:26 PM
Hi,

I am new to the site overall and apologies if I am posting this in the wrong group.

I created a DBA back in 2004 or so under my name. I am about to close on 2 properties and I have told them I want it under my DBA. Now my brother is interested in getting an existing business so we need to create a LLC. Can we swing my DBA under the LLC? Is there any legal complications or fees or penalties for doing that? The DBA is only under my name where as the LLC will be under both my names.

Freelancier
12-19-2013, 07:18 AM
Basically, a DBA on a sole proprietorship is YOU. An LLC with two people is a different entity, unless you were to create the LLC just for you, roll all the assets in, then add your brother as a member.

However, if I was in your situation (and I have multiple businesses, so I guess I am), I would consider having an LLC for each property (to provide liability shield, so that a liability problem at one property might not bleed over to the other property), and then a third LLC for your brother's business (so that it's shielded) and then maybe an overriding LLC or corporation to manage all of the other LLCs if you really want to combine money.

Sounds complex, right? That's why right now is the time to spend a couple of hours with an attorney and an accountant to make sure you really understand how to best protect yourself. You don't usually need an attorney to create an LLC, but the advice you get will be priceless as you organize your businesses.

mehta74
12-22-2013, 10:49 AM
thanks Freelancier. I will look into speaking to someone about this (my brother has been digging around already). There are some online sites that let us create the LLCs (rocketlawyer.com).

so here's my sequence of events.
1. Created DBA back in 2004 - under my name
2. Purchased 2 townhouse/condos under DBA but then on title documents I stated we had 2 directors for the DBA
3. Created the LLC with 2 directors

There is no overlap of the steps above. We are now at step 4 and need to figure out how to put the DBA under the LLC.