Legal Question in Business Law in Pennsylvania
"If I have an affiliate company in michigan and I would like to start a company in Pennsylvania with the same DBA name but under a different company name. Would both companies be protected from one another if one was to be sued?"
1 Answer from Attorneys
As a Franchise Attorney I can only say the following. You haven't stated how they are affiliated and that would affect the answer. Normally, corporations (if that's the entity you're talking about) that are adequately capitalized and follow all corporate formalities are deemed separate legal entities. However, if one is 100% owned by a parent, then the parent can be (but is not always) liable. Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
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