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Question
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Ken
Question about contracts If you change your company name, are the contracts still valid? What if your structure changes, such as going from being non-incorporated to incorporated?
Obviously
anonymous
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Answer
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If your contract was properly executed then it remains valid if you change your name. You don't have to get new contracts signed. If you get involved in lawsuits you will probably have to explain why the contract is under a different name, but you will be able to show it's only a name change. Keep in mind that if you change your name you will have to change your license information, permit and certificate registration as well. You can't have a new name and continue to use an old name. This is so even if you go from your corporate name to a corporate DBA. The licensing agency will want to know what name you go by now.
If you change your entity then you will need to assign your contracts to the new entity. It's same as a sale to a third party essentially. You should document the transfer of title to the contracts. You won't have to get them resigned if you do a proper transfer.
If you don't do the transfer then the new entity will not be able to rely on the contract used by the old entity, subject to a few legal theories that we don't need to get into now because you are going to do the documentation. Trust me, documenting now is going to be a lot less expensive then scurrying around later trying to justify why your new entity is entitled to rely on the old contract.
If you doing business in your own name [and have more than your own personal account and maybe your parents or children - you're nuts] and then form a corporate entity [corporation or LLC] then that's a new entity and you have to transfer the contracts to the new entity.
Be sure to let your insurance carrier know you've changed entities or names. You don't want to have to start explaining that for the first time when you are reporting a claim.
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Speaking Engagements
If you would like to schedule a free live video/webinar presentation for your association meeting or event contact Eileen Wagda at 516 747 6700 x 312.
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Alarm Association of Greater St. Louis. September 16, 2014. at Tech Electronics HQs office at 6437 Manchester Ave, St. Louis, MO 63139. Meeting is from 11:45 – 1:30 Video conference presentation starting at 12:15 CST. For more information or to register contact Tony Drago adrago@tyco.com www.alarmstl.org
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NYSESA - September 17, 2014 at Honor's Haven Resort, Ellenville, NY. This is the NYS Electronic Security Assoc annual meeting. Presentation on updated contracts and current legal issues will be at 10:30 AM. For more information or reservations contact Dale R. Eller, Executive Director (814) 838-0301 dalereller@itzsolutions.com
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Texas Burglar and Fire Alarm Association. October 1 - 4, 2014, annual convention at San Luis Resort Spa & Conference Center, Galveston, TX. Register here: http://tbfaa.org/tbfaa-2014-convention-trade-show-attendee-registration/
For more info contact Debi at 281-859-4569. Brad Shipp, Executive Director
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Alabama Alarm Association. AAA's Fall Meeting and Trade Show - October 21, 2014 from 3 to 5 PM at DoubleTree Hotel 808 South 20th Street Birmingham, AL 35205 for more info contact AAA Executive Director: director@alabamaalarm.org (205) 933-9000
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