Appellate Practice Attorney serving New York, NY
There's no reason why a general partnership can't operate numerous business under various names, just as individuals can operate John's Pizza at the same time as they operate Joe's Garage and Mary's Bowling Alley. However, it may not be the best way to handle it. If you own partnership x, which operates businesses a, b, and c, those businesses (a, b, and c) are each responsible for each other's obligations (your personal assets could also be in jeopardy if you use the partnership form.) If someone driving a truck delivering a's merchandise has an accident, and insurance and assets are insufficient to satisfy the liability, the assets of b and c can be in jeopardy - a, b, and c are not separate entities (d/b/a just means doing business as, it doesn't create a separate legal entity.) However if you own llcs x, y, and z, which operate businesses a, b, and c, respectively, each of them is a separate legal entity, and one is not responsible for the debts of the other. You have to weigh this advantage, however, against the possible tax disadvantages. If a, b, and c are all owned by the same partnershiip, a's losses can be offset against b's and c's profits when it comes to income tax. There are other factorsis to consider as well, and the best structure for any sort of business venture may depend on each individual's personal situation.
Answered on Sep 28th, 2014 at 8:31 AM