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Ask HN: Running multiple DBA (Doing Business As) under one parent company?
I have my own company (S-Corp in the US) that I use for enterprise consulting. I have a SAAS business in mind but that is totally unrelated to my consulting stuff.
Question: if I do the SAAS business, can i use my existing company as parent company and just do "Doing Business As" (DBA) with the new company ? I just want to avoid the hassles of incorporating yet again. I have an accountant who told me it is ok in my state but wanted to hear your "opinions" on what you guys think if you are already doing something like this ?
So I know the answer is technically yes but what are pros and cons of doing this ? Anything you can share will be nice
- BryanBigs 12y agoNot a lawyer, so take this fwiw - From a risk perspective, if something went wrong with the DBA the S-Corp could become encumbered. For example, your SAAS product ends up malfunctioning and someone claims you've harmed their business, they can come after your enterprise consulting business/assets. If you had most of your liquid assets tied up in the S-Corp, that might might be a problem. Frankly, I have done something similar just for convenience sake during the initial testing/ramp phase, and I'm not too worried about the risks. Good to be aware of them though. Longer term if the SaaS product works out I'd move it to it's own legal entity at that time.