sole proprietorship and liability

[halsal]

What is the name of your state (only U.S. law)? US

Assume there's a hypothetical situation where Company B is a "sole proprietorship" under the same name as Company A. Company B declares bankruptcy. Creditors are aware of Company A, and Company A claims the proprietor of Company B is not "employed" by Company A.

Can Company A be held liable for the debts of Company B if any of the following are true, individually or collectively:

I. Company A publicly advertised Company B's existence.
II. Company A publicly advertised Company B's owner as its own employee. (e.g., "Welcome XX to Company A!")
III. Company A seeded/seeds money to Company B.
IV. Owner(s) of Company A are related to the owner of Company B.

The reason I ask is, hypothetically, an owner-owner relationship funding and advertising a company of a same name (i.e., boosting established brand awareness) while claiming "they're not ours!" seems sketchy.

Case law or citations would be much appreciated! (This is not a homework question.)

 

[Mass_Shyster]

Your post is confusing.

A sole proprietorship cannot have multiple proprietors. That's why it's called "sole".

You stated that Company B is "under" Company A. What does that mean? "Under" is not a legal relationship. Also, "Company A" is clearly not the name name as "Company B".

Business association laws vary by state. "US" is too broad.

 

[halsal]

You stated that Company B is "under" Company A. What does that mean?

I proposed no declaration of corporate hierarchy; I merely stated that this hypothetical Company B is under the same name as Company A. Example:

Company A: Unicorn Taxidermy
Company B: Unicorn Taxidermy

For simplification, let's also assume that "Unicorn Taxidermy" is clearly not, nor could be, mistaken for anyone's name.

A sole proprietorship cannot have multiple proprietors. That's why it's called "sole".

I need to up my morning coffee. I'll edit the erroneous pluralities out of the OP.

 

[tranquility]

There is no legal relationship because two different businesses have the same name.

 

[halsal]

There is no legal relationship because two different businesses have the same name.

Even if any, or all, of these are fact:

I. Company A publicly advertised Company B's existence.
II. Company A publicly advertised Company B's owner as its own employee. (e.g., "Welcome XX to Company A!")
III. Company A seeded/seeds money to Company B.
IV. Owner(s) of Company A are related to the owner of Company B.

 

[davew128]

Do your own homework.

 

[tranquility]

THERE IS NO LEGAL RELATIONSHIP BETWEEN BUSINESSES WITH THE SAME NAME.

The rest of what you allege has to do with different and separate torts.