We own a Nevada LLC and opened a DBA under that LLC in order to develop a television concept with a company from Canada who will own half of the concept. They feel an LLC would be more appropriate however we don't want to go thru the expense of doing this as we feel it's premature and an unnecessary cost at this point. They are paying for the development of the concept and we are contributing our expertize and sweat equity. is a DBA adequate in this case?
Absolutely not. A DBA is merely another name for an ongoing business or person. You need other protection. You need to consult a corporate attorney before doing anything else.
Your question is a little confusing. If you created a Nevada LLC and then opened up a business under the Nevada LLC, but called it by the DBA name, or "Doing Business As," name, you are essentially acting as the Nevada LLC, but using a different legal name. When you open up a bank account, the bank will likely require this fact to be clearly demonstrated. However, if you did not set it up correctly, you will be working as individuals with the DBA name. For example, if you accidentally opened up a DBA under your names, then you are not working under the Nevada LLC and are going to be personally liable for the debts of the new company. It sounds to me like you should consider sitting down with a Nevada business attorney to discuss, in more details, what the Canadian Company wants you to do. A couple hundred dollars to make sure everything is set up correctly could save you in the end. I wish you the best of luck.
Legal disclaimer: I am licensed in California and Nevada (formerly licensed, but inactive in Iowa). Please note that the above comment does not constitute legal advice, nor should any party rely on it as legal advice, since each situation is based on specific facts, that must be evaluated through a comprehensive legal consultation, and a review of all of the facts and documents at issue. Likewise, this comment is not intended to, nor does it create an attorney-client relationship.
If I understand your question correctly... it seems you already have a Nevada LLC. An LLC is a legal entity (think separate person altogether). A DBA is not a legal entity, but you can have your LLC operate under the DBA name... or you can obviously just operate under the LLC name.
If the Canadian company wants to operate under the LLC name, I'm confused as to why you don't just use the current LLC you already have (unless it is in use for some other business). More importantly in all this is having a proper operating agreement put in place between you, the Canadian team, and any other "Members"/owners of the business. Speak to a business attorney soon.
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