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Updated almost 8 years ago on . Most recent reply

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Joshua Small
  • Real Estate Investor
  • San Antonio, TX
2
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Using DBAs when wholesaling property

Joshua Small
  • Real Estate Investor
  • San Antonio, TX
Posted

Can I buy with DBA #1 and sell with DBA #2 under the same parent LLC? Or would I use the LLC name on both sides? Would it differ if I was doing assignment vs double close?

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Ryan Jang
  • Investor / Realtor
  • Chicago, IL
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Ryan Jang
  • Investor / Realtor
  • Chicago, IL
Replied

Legal issue but probably not, if the intent is to use only DBA names and not the LLC name in the contracts.

http://yourbusiness.azcentral.com/account-company-name-dba-contract-26318.html

"You may think it's not important to indicate both the legal name and the DBA of your company when signing a contract because you use the DBA exclusively in your advertising and on products for sale. A DBA, however, is basically just a nickname, and using it without reference to the full legal name of the company in legally binding transactions can undermine the liability protection that corporation and LLC business structures provide. A business creditor can argue that the person who signed the contract is individually liable for performance because the legal name of the business was never used."

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