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tamerak

Junior Member
What is the name of your state? I live in PA
I have a question about our S corporation. We have 2 couples, my husband and I and another couple. Both couples own 50% of the corp. The problem is that we run the corp. out of their home. We have found out that the other couple is running the same exact type of business through their home also with another name of course. Is this legal? What should I do?
 


divgradcurl

Senior Member
tamerak said:
What is the name of your state? I live in PA
I have a question about our S corporation. We have 2 couples, my husband and I and another couple. Both couples own 50% of the corp. The problem is that we run the corp. out of their home. We have found out that the other couple is running the same exact type of business through their home also with another name of course. Is this legal? What should I do?
Corporate officers -- even S corp officers -- owe a duty of loyalty to the corporation, which means, at a minimum, they cannot compete with the corporation. You need to talk with a local attorney who has experience with corporate affairs, who can review all of the relevant facts and advise you accordingly.
 

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