Q: Does a person who is DBA as C-corp enjoy the liability protection of the C-corp?
If we create a C-corp business, e.g. ABC Widgets, Inc but then create a DBA in a person's name, e.g. Jane Doe, DBA ABC Widgets, Inc, does Jane Doe also benefit from the liability protection of ABC Widgets, Inc? Would Jane incur any personal liability from this type of business structure?
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A: No, a person who is a DBA as a C-corp does not enjoy the liability protection of the C-corp. A DBA is simply a fictitious name that a business can use to operate under. It does not create a separate legal entity from the owner of the business. In the case of your example, if Jane Doe creates a C-corp called ABC Widgets, Inc. and then creates a DBA in her own name, Jane Doe is still personally liable for all of the debts and liabilities of ABC Widgets, Inc. The only way for Jane Doe to be protected from personal liability is to create a separate legal entity, such as a C-corp or an LLC. For personalized legal advice tailored to your unique circumstances, it's advisable to consult with an attorney.
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