Corporate Resource Guide » Owner Duties http://www.corporateresourceguide.com A Unique Resource for Small Business Corporation Owners and Operators Tue, 26 Jan 2010 02:35:42 +0000 en hourly 1 http://wordpress.org/?v=3.0 Can I operate more than one type of business under the same corporation? http://www.corporateresourceguide.com/can-i-operate-more-than-one-type-of-business-under-the-same-corporation/ http://www.corporateresourceguide.com/can-i-operate-more-than-one-type-of-business-under-the-same-corporation/#comments Tue, 29 Dec 2009 15:00:13 +0000 Robert Montgomery http://www.corporateresourceguide.com/?p=152 Continue reading →]]> In most cases the answer is yes. Most states only require a general purpose clause in the articles of incorporation. That means that you can state in your articles of incorporation that the corporation is entitled to engage in all lawful business. This allows you to conduct any lawful business under the same corporate name. For example, Jim Jones may want to operate his garden supply business and his wife’s scrapbooking business under the same corporation. There is nothing improper or illegal about doing this. However, for accounting purposes, some people will put different businesses into separate divisions under the same corporation so they can track profits and losses separately. There are a few states that still require you to state specifically what the business purpose is and you cannot vary too far from the stated purpose.

Also, if a professional corporation (one offering a professional service such as law, medicine, accounting, etc.) is formed, then usually the owners/shareholders must all hold the same professional license and can only engage in that particular profession under the corporation’s charter.

]]> http://www.corporateresourceguide.com/can-i-operate-more-than-one-type-of-business-under-the-same-corporation/feed/ 0