As a DBA owner do you have to sign off onto paperwork when an LLC is formed and you are no longer owner even on the LLC?

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As a DBA owner do you have to sign off onto paperwork when an LLC is formed and you are no longer owner even on the LLC?

I had a DBA in the state of Michigan with my husband. We formed an LLC from the DBA and my husband and his business partner are now on the LLC and I am no longer an owner. I was upset with the fact that I am no longer a legal owner of the business. Is it legal that when the LLC paperwork was filed by my husbands business partner that I didn’t sign off any paperwork.

Asked on May 13, 2009 under Business Law, Michigan

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

You and your husband were sole proprietors, so you had a d/b/a? Was the business partner part of this d/b/a?  What kind of business? Did it require licensure? A d/b/a is only is "also known as".  So your sole proprietorship was the form of the business.  Or was it too an LLC or Corporation?

Then, your husband and a business partner formed an LLC -- it cannot be in place of the d/b/a  without you- because the new LLC is a new company -- so is it a subsidiary or affiliate?

Is this a company requiring licensure in your state? Did you file with the Secretary of State as the d/b/a and did your husband file with the secretary of state as the LLC?

Call your Secretary of State's office and inquire.  I don't think it is an issue unless your husband's action was to replace the d/b/a completely and your underlying company with him.

 

If the secretary of state's office cannot help you, seek a consultation with a lawyer on your own.  Try www.attorneypages.com and then verify his or record through the Michigan State Bar.


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