Startup Business Joint Venture

Discussion in 'Starting a Business' started by arnie51, Jan 11, 2013.

  1. arnie51

    arnie51
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    Hi All,

    I am new to this forum and am looking for some guidance. I live in Manhattan Beach, California.

    I am leasing a space with another DBA sole proprietor.. so there are two separate DBA's with established
    clientele, general and professional insurance. We want to keep our businesses separate
    for the time being until we determine that the partnership is going to work out.

    Was thinking we could do a joint venture without any tax implications, but just have a formal agreement
    about paying rent, utilities, bldg expenses and shared area expenses. My question
    is around the name we convey to the public on the signage. Can we do a DBA for the main
    purpose of having a unified front? However our businesses would remain separate
    in everyother instance. Is this doable? Legal? Could this DBA for a united front be
    a potential liability for accidents, lawsuits ect?

    Thanks in advance for your help !
    Arnie :)
     
  2. Ted

    Ted
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    Hi Arnie....

    In your situation, your only real choice is to seek legal counsel in California.

    What would happen if you were to take the advice of someone on this forum only to find out later this year that you are named in a lawsuit that the other guy caused? This kind of advice is why lawyers exist.

    My intuition tells me that you would want to just put both your individual business names on the sign. Either that or some generic information like "Business Insurance" and "Auto-Insurance" or whatever. But, I definitely would not use a business name that ties the two of you together. Anyway....yeah...you should really ask a local attorney.
     
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