4 ms·
Not 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 prod
by BryanBigs 12y ago
Not 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.