Legal Question in Business Law in Tennessee
Corporation with several unrelated activites.
Are there any laws or other limitations on the types of activities a corporation can be engaged in? Can I use the same corporation for a variety of activities? I have a business (corporation) that does web site design. I also want to purchase rental real estate, and my wife does craft work. My wife and I are the only shareholders, officers, etc. of the corporation. Can we (should we) do all of this under the same corporation or form 1 or 2 others?
1 Answer from Attorneys
Re: Corporation with several unrelated activites.
A corporation can be organized to engage in any lawful activity. Traditionally a corporation's articles of incorporation would specify in what activities it could engage. Modern corporations are usually set up to allow them to engage in any lawful purpose. Check your articles of incorporation to make sure there are no limitations on your corporation's activities. If not, your corporation can engage in any lawful business activity.
You may want to consider consulting your tax advisor about how to organize your corporation's activities. There may be some tax advantages in forming divisions or wholly owned subsidaries depending upon the extent of your operations. Good luck!
If I can be of further assistance to you, please do not hesitate to contact me at 800.403.7868 or [email protected].
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