Form new DBA or LLC with judgment

I want to form a new LLC or just as DBA license. I have a judgment on file with a court, personal judgment only. Will this affect my new company? I won’t be moving any assets or money from personal stuff to the new company, it will all be new income from the new company. Can the plaintiff that has the judgment do anything to my new company? It would be done in another state.

Asked on October 16, 2017 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If you just register as a d/b/a, then you and the business are legally the same person and business income or assets could be subject to your personal debt.
If you create an LLC, the LLC will be exempt or protected from your personal debts, the same way that you are personally protected from LLC debts or obligations, so long as you respect the LLC formalities and form: do not comingle your money or assets with LLC money or assets, do not have the LLC pay pursely expenses or debts for you, etc. Keep the LLC and you separate.


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