RE d/b/a - Posted by John Merchant
Posted by John Merchant on August 12, 2003 at 11:33:51:
Theoretically, it wouldn’t be difficult. Just have the RE P&S agreement in name of Betty Buyer and/or Assigns; then, assign to your d/b/a…BUT, here’s where the problems begin.
The title/escrow co will want to see your legal/licensed authority to use that d/b/a and that means, at least in my state of WA, that you’ve applied for,paid the state fee to Sec. of State, and received a State sanctioned d/b/a authorizing you to d/b/a “La Buyere Investments”, or whatever name you’ve been “given” the right to use.
NONE of these state records are exempt from Fed Freedom of Information Act (FOIA), meaning anybody can go to Sec. of State office or website, and find out in minutes YOUR identity. And I agree this is not good.
Even if you didn’t have to register a d/b/a in your state, anybody could maybe find any RE’s tax info and then easily see the address of the tax payer…YOUR address.
This is just one of the reasons a sole proprietorship, including just d/b/a in your own name, or a licensed d/b/a is of little value.
Another big reason is it gives you NO liability or tax benefit. Somebody gets a Judgment agaist you, they can grab any property in name of that d/b/a.
Suggest you think very seriously about creating a real anonymous entity like LLC,corp, or RE holding trust, where you’re not the CEO or Trustee, then putting any RE in that name. A lawyer can help you keep that entity confidential and non-visible to snoops and stalkers.
Yours is sure not any unique problem.
So many RE Agents have been stalked, scared, hurt or killed that the states are now urging all RE licensees NOT to use their home addresses on their business cards or fliers.
Happy RE investing to you. But as you say, in some other name.