Legal Definitions - carrying on business

Definition: Carrying on business refers to performing activities for a business organization, such as a partnership or corporation, with the intention of making a profit.

This concept is used in various ways:

• A trustee may have a legal obligation to carry on the business in a trust until the assets are distributed.
• Carrying on business may be a requirement to receive certain beneficial corporate tax treatment.
• In partnership law, partners must carry on business to maintain the property benefits of the partnership structure.

For example, if a trustee is responsible for managing a trust that includes a business, they must continue to operate the business until the trust's assets are distributed to the beneficiaries. Similarly, if a corporation wants to take advantage of certain tax benefits, it must demonstrate that it is carrying on business in a particular jurisdiction. Finally, if partners in a partnership stop carrying on business, they may lose the benefits of the partnership structure, such as shared ownership of property.