DBA Or Fictitious Name In REI?
I was wondering if doing a DBA("doing business as"
is a good idea to start in REI. We want to do a few deals and then start a LLC? Anyone done a DBA before?? I've heard that using a DBA can make it difficult to get title insurance. When would you need title insurance? We would like to get into flipping(assigning contracts) foreclosures and sub2's. Any feedbacks??
Most states require you to have a dba if you are acting as a biz... even if you are using your own name... check your local laws... try secretary of state....
how about title insurance? Any ideas on that?
a DBA is used if you are using a fictitious fname. You cannot buy anything in a fictitious name, so you cannot title it. (This is true in Florida, in any case).
Keep in mind that if you start an entity and name it ABC Company, that is not a fictitious name. That is a real name.
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Because a DBA has no legal status you cannot take title in that name. A DBA is simply another name, or more properly a fictitious name used by the individual. You could take title in your own name and obtain title insurance that way.
Is there any benefits to purchasing with an assumed business name then?
Quote:
On 2003-10-06 20:08, snek11 wrote:
Is there any benefits to purchasing with an assumed business name then?
You cannot buy in an assumed name. You must use the name of a real entity.
There are advantages of buying in an LLC that you own. There are many posts ther about that
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While I'm not sure about BUYING in DBA, I am sure you'd have great difficulties SELLING and passing good title, if you did so.
Let's say you did buy Blackacre in name of Ajax Group, and managed to get that deed recorded...how would you prove to any buyer's or title co.'s satisfaction that Ajax Group exists, who they are, etc. when it comes time to sell?