Q: When you do a dba to your incorporated business does it automatically become incorporated also?
We are General Contractor going into business starting a new company we will own 50% and adding it to contractors license as a dba
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- California
- (707) 584-4529
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- Answered
A: The short answer to your "automatically become incorporated" is "no". The longer answer is a combination of ownership, your management agreement, your written agreement with homeowners for your "Home Improvement Contracts" ... and the CSLB issues ... you will want to schedule a free initial video call to discuss the matter furhter.
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- California
- (916) 704-3009
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- Answered
A:
Filing a DBA (Doing Business As) for your incorporated business does not automatically incorporate the new business name - it simply allows your existing corporation to operate under another name.
For your specific situation as General Contractors, adding a DBA to your existing corporation means the new business name will operate under the legal structure of your original corporation. This maintains your corporation's liability protection and tax status, but you'll need to ensure your contractor's license properly reflects the new DBA name according to California state requirements.
If you want the new 50/50 ownership venture to be a separate incorporated entity, you would need to file new incorporation papers with the California Secretary of State rather than just filing a DBA. You might want to consult with a business attorney to determine the best structure for your specific situation, especially since this involves both a contractor's license and shared ownership.
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