If I have an LLC video production business and am now starting an audio video installation/programming business, should I change the LLC and make it a DBA?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I have an LLC video production business and am now starting an audio video installation/programming business, should I change the LLC and make it a DBA?
Or should I create an entirely new business LLC with a new name? I may still want to do more business with the video production in the future but I don’t want to use the same name as my AV business which is now the primary focus (I haven’t been doing much with the video production business lately).
Asked on May 9, 2014 under Business Law, New Jersey
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
You are almost always better off conducting business under an LLC than as a DBA, since an LLC will protect you from most employment/work-related liability--e.g. you will likely not lose your house if the business is sued for breach of contract or the like. Having an LLC also makes it easier and cleaner to show business costs/expenses as opposed to personal costs/expenses, which makes it easier and safer to take business deductions for tax purposes.
As to whether you should have a new LLC or work under the existing one--that is a matter of personal preference. Legally, an existing LLC can expand into new business lines, so the question is do you value the increased flexibility of conducting both business under one LLC (you can move money, etc. around between them easier) more or less than you value having a different name and being able to keep the lines of business more fully separate?
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.