Legal Question in Business Law in Texas

Corporation S and DBA

I formed a Corporation S and canceled my Sole Prop. However, I put my DBA under the S Corp to avoid having to redo paper work with my Distributor. Can I keep my tax permit and bank accounts under the DBA which is under the S Corp and still be protected personally from suits against my DBA / S Corp?

Or do I have to put bank accounts under the S Corp and cancel the DBA account as well as the tax permit?


Asked on 10/31/07, 11:16 am

1 Answer from Attorneys

Re: Corporation S and DBA

You need to do a "novation" of all contracts that you had done with the d/b/a. If not, you are still personally liable on those contracts. I would also get a new tax permit, to be safe. Definately get a new bank account, so if something happens you can show that you never co-mingled personal and corporate funds.

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Answered on 11/04/07, 10:40 am


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