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socrateaser, Attorney
Category: Business Law
Satisfied Customers: 38910
Experience:  Retired (mostly)
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Is it ok for my corporation a chapter c to have as part of

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Is it ok for my corporation a chapter c to have as part of of its mission to provide premium to customers for business reasons including charatable works
I don't understand the term "premium" in this context. Can you provide an example of what you're proposing?

Customer: replied 3 years ago.

Basically that to be a customer of ours you have to buy our backup services and basic support package. We will not offer services to the public we must accept you as a client. This is a private offering to members only like the DeBeers diamond company diamond market.

A corporation can provide whatever promotional marketing incentives to clients that it wishes. If the incentives are "ordinary and necessary" to carrying on the trade or business of the corporation, then the incentives are deductible. However, the clients must be third parties (purchasers of the corporation's products and services). They cannot be employees.

A promotional incentive cannot be in exchange for payment, if it is based primarily upon an element of chance. To do so is to engage in an illegal gambling enterprise. That is the only real limitation.

If I'm still not understanding your core concern, please clarify and I will try to assist you further.

Hope this helps.
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