Search Site
Menu
If You Kill Superman, Clark Kent Dies Too… Understanding the danger of an alter ego from a legal perspective.

If You Kill Superman, Clark Kent Dies Too… Understanding the danger of an alter ego from a legal perspective.

A conversation that happens far too often with new clients looking for legal help for their new business:

Client:           “I’ve started a new business and I’d like to have a lawyer handle the legal parts of the business.”

Attorney:      “Great, we would be glad to help you.  When do you plan to start transacting business?”

Client:           “Well, I have actually been in business for eight months already.”

Attorney:      “I understand. We need to make sure that you are protected from personal liability to the extent permitted by law.  Depending on the type and nature of business you are transacting, we may want to form an entity, typically an LLC or a corporation, and make sure that you are transacting business only under that entity.”

Client:           “I’ve already done that.”

Attorney:      “Ok great, did you form an LLC or a corporation?”

Client:           “Neither, I went to the county office and filed a DBA/Assumed Name form.”

Attorney:      “A DBA/Assumed Name is not designed to, nor can it protect you personally from liability.  It is simply and alter ego of yourself.  An LLC or a corporation, on the other hand, is a separate “being” from you legally.  It can do most things from a legal perspective that a person can do, like buy and sell personal property and real estate, it can sue and be sued, hire and fire employees, and even, when necessary, file bankruptcy, all wholly separate from you individually”

Client:           “So how is that different from a DBA?”

Attorney:      It’s the difference between Batman and Robin vs. Superman and Clark Kent.”

Client:           “Huh?”

Attorney:      When you form an entity, that entity can stand on its own and transact business on its own, completely separate from you.  You and your business are separate “people” like Batman and Robin.  A DBA/assumed name on the other hand is like Superman and Clark Kent.  Your “business” under the DBA/assumed name is like Superman and you individually are like Clark Kent.

Client:           “That doesn’t seem like a bad idea if the Business is Superman, and I am Clark Kent.”

Attorney:      “Sounds OK, until the villain hurts or kills Superman.  You kill Superman and Clark Kent dies to”

Client:           “Oh… I get it… So how quickly can we get an entity formed?”

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact a Dedicated Texas Business Lawyer To Schedule a Consultation
Call 281-367-1222 or contact us online to schedule a meeting.

Strong In Action

  • Spring 2019

    The Strong Firm represents borrower in $42.3 million HUD construction loan for multifamily real estate development in Walton County, Florida.

    Read More
  • Spring 2019

    The Strong Firm acts as legal counsel for borrower in $32.1 million HUD construction loan for multifamily real estate development in Conroe, Texas.

    Read More
  • Spring 2019

    The Strong Firm aids borrower in $31.7 million HUD construction loan for multifamily real estate development in Nueces County, Texas.

    Read More
  • Spring 2019

    The Strong Firm represents borrower in the refinancing of a $3.57 million commercial mortgage-backed security for a commercial office facility in Montgomery County, Texas.

    Read More
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  • Peer Rated 2019 Award

Recent Blog Posts

Legislation Authorizes Paid Sick Leave for Workers Suffering from Coronavirus

New legislation passed in response to the COVID-19 pandemic allows certain workers to receive paid sick leave even if their employer previously did not provide it. In March, the federal government enacted the Families First Coronavirus Response Act (FFCRA). This law assists employers that give their employees paid time off
Read More
Legislation Authorizes Paid Sick Leave for Workers Suffering from Coronavirus

Lenders Suspend Home Foreclosures Due to COVID-19, But What Happens Next?

Many large financial institutions are suspending foreclosures because of the massive economic damage caused by COVID-19. Some banks have stopped proceedings indefinitely. Others have set time limits for foreclosure suspensions such as 60 or 90 days. Even as health and financial issues remain uncertain, this is a good time for
Read More
Lenders Suspend Home Foreclosures Due to COVID-19, But What Happens Next?

How Can I Create Estate Planning Documents During the Pandemic?

Even in its first few weeks, the COVID-19 pandemic caused many people to examine or reassess what is most important to them. The need to prepare in case of an emergency or untimely death has been highlighted by the tragic losses occurring around the country. What can you do if
Read More
How Can I Create Estate Planning Documents During the Pandemic?

Complying with Corporate Annual Meeting Requirements during the COVID-19 Quarantine

How do you hold a corporate annual meeting when the entire country is in lockdown? On the surface, it might seem like a simple matter of using a favorite video conferencing tool and perhaps checking to see if it’s been hacked. Annual meetings for corporations are more than get-togethers. They
Read More
Complying with Corporate Annual Meeting Requirements during the COVID-19 Quarantine
  • Video Vault


    Watch videos done by our legal team to gain a better understanding of your legal needs. Our lawyers give video insight into areas such as Real Estate, Business Law, Mergers & Acquisitions and much more.

Pay Retainer Online

Use our easy-to-use and secure online payment feature.
We accept all major credit cards.

Pay Your Retainer

Contact us

Quick Contact Form