Legal Question in Business Law in New York

Re: dba benefits and pitfalls

There may not be legal advantages to operating a business under a DBA (as several of my colleagues have already correctly informed you).

However, using a DBA can confer tactical advantages of increased anonymity in that it makes the task of locating the owners or registered agent of the business slightly harder and more complicated especially for dissatisfied customers (or other individuals with grievances against the business) who are unsophisticated and who cannot afford legal help.

Note also that DBAs are used not only by sole proprietorships but also by corporations, limited partenerships, general partnerships, and by limited liability companies. However, in accordance with Section 130 of New York State's General Business Law, it is only legal to operate a business under an assumed name DBA in New York after the appropriate certificates have been filed with the appropriate state or county offcies depending upon what type of business entity is at issue.

If a New York State corporation or a limited liability company or a limited partenership does not use a DBA, then it is very easy for somebody

with a grievance against that company to conduct a two minute Internet search to find out the address to serve process on that business or the address of the registered agent of that busines; however, if the business uses a DBA, then that aggrieved individual must send a written request via FAX, e-mail, or regular mail to the appropriate state agency to fnd out how and where to serve process, where to find the registered agent, etc.

Moreover, if the business operating under a DBA is a sole proprietorship or general partnership, then individuals with a grievance against that business will not be able to find out more information unless they go to the trouble of going to the office of the county clerk of the county where the business transacts or conducts business where the certificated of assumed name for sole proprietorships and general partnerships are filed.

Lastly, note that if you are registering an Internet website domain name for your Internet business (whether as a ".com", or ".org", etc.) with your name and address as domain registrant, then a "computer savvy" individual with a grievance against your business can find out your name and address by using the "WHOIS" function at various websites. This would cancel out the main advantage of increased anonymity to be gained by operating a business as a DBA. There are ways to avoid having your name and address accessible to the "WHOIS" function for researchng websites and you may want to consult whoever will be registering your website's domain name for advice in that matter.

Re: dba benefits and pitfalls

A dba does not offer any limitation on liability. A business entity (corporation, LLC, or partnership) may protect your personal assets from business liabilities.

Re: dba benefits and pitfalls

I agree with Tony, that dba does not protect anything. It is merely a sole proprietor doing business under a name other than his actual name. I suggest doing business as a one-man LLC. This requires formation with the NY Secretary of State and can usually be done online through their office website. While the LLC may protect your assets, it will not protect any liabilities that arise through personal guarantees you give, or driving a business-owned car, or similar things for which you remain personally liable.

Re: dba benefits and pitfalls

If you are going to operate in NYS under a name other than your own, you are required to register that "assumed name" ("dba") in NYS. There are no legal advantages or disadvantages. The dba registration in NYS does not protect you from personal liability as would a limited liability company.

Lee Black