Posted by Matthew Chan on May 06, 2000 at 02:16:01:
If you read the articles of incorporation for most companies, you will find a statement that says that a corporation may engage in any legal business activity. REI and computers are certainly legal. I use my corporation for both activities but I put on a different hat when I actually engage in it.
I got rid of my old CPA when he refused to understand that simple concept. My corporation is here to make money whether it is in REI, computers, basketweaving, babysitting, shoeshining, whatever. You simply make sure you have records to prove you are engaging in those businesses. They are simply different sources of revenue and it all spends the same.
It is much easier to avoid the hassle now. I told the Business License people that it is the same company but we are expanding to other activities. They simply added the extra SIC code (which tells what types of business you are in) and dba name. There was only a small change of information fee on the same business license.
I told my old CPA 3 times over the span over a year on what I was going to do and he kept giving me resistance on legitimate deductions. His limited mind could not get past the fact that I make money doing different business activities. I found another CPA based on referral and he had no problems with it. It made perfect sense to him.
So, do what you need to do… Last thing I checked, doing 2 or more businesses is not illegal.