Legal Question in Business Law in Massachusetts

Excluding non profits, Are all business required to have economic activity and a profit motive?

Asked on 11/04/16, 10:37 am

1 Answer from Attorneys

You can use a LLC/LLP as a nominee to hold an asset. A corporation or LLC should have a business purpose, whether it has activity is another issue.

For tax purposes if a company does not generate income or expense and simply holds assets if could be treatred as a personal holding company, which could have tax consequences if and when the assets are sold or generate income.

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Answered on 11/04/16, 11:00 am

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