Legal Question in Business Law in California

DBA to S Corp and Lease

We were a DBA for a long time now we've incorporated (S Corp). Our commercial lease is under the DBA. I'm concerned about the ability to ''pierce the corporate veil'' having a lease under a DBA (not for rent but for outside legal issues that may arise).

We don't like the lease the new owners of the building are using as much as our existing lease. Is there something we could have an attorney draw up to keep our lease but state that we're now a corp? Is any action necessary at all?


Asked on 3/22/09, 7:29 pm

2 Answers from Attorneys
Adam Telanoff Telanoff & Telanoff

Re: DBA to S Corp and Lease

It is a good idea to try and assign the lease to the corporation. There are a number of different ways to do so, however, you will need to get the landlord's approval first. What you do not want to happen is to transfer the lease to your corporation, then find out that you are in breach of the terms of the lease.

In today's market, the landlord will probably work with you to keep a paying tenant.

If not there are other ways to protect yourself. Please feel free to email for a more detailed discussion.

Read more
Answered on 3/23/09, 11:47 am
Terry A. Nelson Nelson & Lawless

Re: DBA to S Corp and Lease

The lease and all other documents and agreements need to be converted, for a lot of reasons including the ones stated. Yes an attorney could help you do so if not able to do it yourselves. Feel free to contact me.

Read more
Answered on 3/23/09, 4:05 pm


Related Questions & Answers

More Business Law questions and answers in California