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How would one handle acquiring the name of a business during an asset purchase other than using DBA?

Would like to obtain the legal entity name as well. I could use DBA under a new corporate name, or I could ???(this is were I need to understand my alternatives). Again, this would be an asset sale.

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Answers (1)
Steven St
World Business Partners, Inc
Los Angeles County, CA

If I understand what you are saying is that you want to use the same name that the business is using now. It should be pretty easily done in the purchase agreement to include that you will be purchasing the full and exclusive rights to use the name of the business and transfer the name of the business to yourself at the city where it was registered.

Now there are a number of different ways you can buy a business and all of them have different legal and tax ramifications for you and the Seller.

1. Straight asset sell between you and the seller - You personally buy the assets of the business in your own name. This is by far the easiest because it basically like you buying a t.v. or a car. You're identifying the assets and putting a price on those assets (not including goodwill which is different).

2. You personal buy the business as a corporation - Basically you are buying a corporation with all the assets that belong to that corporation.

3. You form a corporation to buy to buy the assets of the business.

4. You form a corporation to buy the Seller's corporation.

All of these require the specific advice of a competent accountant or tax attorney to advise you on what would be best in your situation. But if you're just trying to get to use the name of the business that can be easily done in the purchase agreement.

Hope this helps.

Apr 26, 2009

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