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Starting a Business for Educational Purposes

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Missile1945

Junior Member
What is the name of your state (only U.S. law)? Indiana

I'm a high school student taking a class called Industrial Design and Enterprise. This semester, we'll be starting a corporation, making a couple of products and selling them for profit. I've been put in the Finance Department and effectively run it. My most recent task was to create a stock certificate, as we intend to sell stock. I completed this, then set myself to filling out the Articles of Incorporation.

However, my teacher said he doesn't actually intend to file them. It seems like this would make the situation a mess. I'm not sure how we'd be able to sell stock if the corporation doesn't exist, and I think that running a business without doing that would be illegal. On the other hand, I'm not sure how we could create a legitimate business, since it would automatically cease to exist in May when the class ends. Thoughts?
 
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tranquility

Senior Member
You don't need a corporation to do business. (You do to sell stock though.) And, you don't need your teacher to file incorporation papers. Do you have a parent?
 

LdiJ

Senior Member
What is the name of your state (only U.S. law)? Indiana

I'm a high school student taking a class called Industrial Design and Enterprise. This semester, we'll be starting a corporation, making a couple of products and selling them for profit. I've been put in the Finance Department and effectively run it. My most recent task was to create a stock certificate, as we intend to sell stock. I completed this, then set myself to filling out the Articles of Incorporation.

However, my teacher said he doesn't actually intend to file them. It seems like this would make the situation a mess. I'm not sure how we'd be able to sell stock if the corporation doesn't exist, and I think that running a business without doing that would be illegal. On the other hand, I'm not sure how we could create a legitimate business, since it would automatically cease to exist in May when the class ends. Thoughts?
Believe me, your teacher already has a handle on it. This is a very commonplace educational exercise that has been going on in schools all across Indiana (and probably other states as well) for decades.

Your school is a legitimate non profit corporation and the selling of the "stock" is a legitimate fundraising exercise.
 

Missile1945

Junior Member
You don't need a corporation to do business. (You do to sell stock though.) And, you don't need your teacher to file incorporation papers. Do you have a parent?
Yes, I have a parent.

The business structure will be similar to a corporation. Does something need to be done for us to operate legally? I believe even a sole proprietorship has to get a business license, or something like that.
 

Missile1945

Junior Member
Believe me, your teacher already has a handle on it. This is a very commonplace educational exercise that has been going on in schools all across Indiana (and probably other states as well) for decades.

Your school is a legitimate non profit corporation and the selling of the "stock" is a legitimate fundraising exercise.
Alright, thanks. Wanted to double check on this.
 

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