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?
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.
Related Questions & Answers
-
Sale of business contract The business i want to buy is in michigan but i'm in texas... Asked 10/30/07, 1:50 pm in United States Texas Business Law
-
Disability and return to work I have been out of work on short term disability for... Asked 10/29/07, 5:18 pm in United States Texas Business Law
-
Estate for Probate How do I find out if some one has filed an estate for probate? Asked 10/22/07, 5:22 pm in United States Texas Business Law
-
Salary If you are on salary , can they pay you mim wage if you dont work 40 hours,... Asked 10/17/07, 11:06 pm in United States Texas Business Law
-
Identify theft ex-husband my wife recently got a letter from a collections agency... Asked 10/09/07, 3:06 pm in United States Texas Business Law