Can I create a NDA for an unformed/unincorporated business?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can I create a NDA for an unformed/unincorporated business?
My business partner and I are planning to incorporate our skin care business soon. Can we create a NDA for manufacturers with a yet to be formed company? Secondly, we have other
interests in different fields online magazine. Can we create a parent company and do a DBA for each subsidiary – one for the skin care one for the online magazine?
Asked on August 17, 2016 under Business Law, North Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Yes, you can do both these things. The NDA will clearly have to be between the other party to it and you personally (since it can't be between the other party and a business that does not exist), and so should also state that it can be assigned by you to a business, and if assigned, the NDA obligations apply to that business as well; then when you create the new business, you can assign (transfer) the contract to it.
You can create a parent company and have it have multiple DBAs, but are better off (for liability protection purposes, including liability for business debts or breach of contract) in having a main LLC which then owns subsidiary LLCs; if the subsidiaries are LLCs, then your parent LLC will have substantial protection from any debts, liability, or obligations of the subsidiaries, and each subsidiary will be insulated from the others.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.