Legal Question in Business Law in New York

I was ripped off by a guy who owned multiple corporations that were identical to each other. He played the "shell game" with his money and his customers. I have now heard that it is illegal to own, operate, register or form multiple corporations that are the same or created to provide the same service or product. Is this true and, if so, what is the statute for NY or nationwide?

Thank You


Asked on 6/13/11, 11:35 am

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say you may have a case against the "guy" and whichever of his corporations you dealt with, if you were "ripped off." As to the second part of your question, there's nothing inherently questionable with setting up multiple corporations that provide the same service or product. It's done all the type by numerous companies, including Fortune 500 companies. Focus on the wrong that was done to you, not on how this "guy" operates multiple corporations. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 6/15/11, 4:36 pm


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