An organization whose primary purpose is to engage in a regular business of a kind ordinarily carried on for a profit is not a business league, and does not qualify for exemption under Internal Revenue Code section 501(c)(6). For example, the following have been found to be non-exempt business activities:
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Testing the safety of electrical products for commercial enterprises
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Selling credit information and collection services
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Employment agency
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Providing commercial towing services for members of an automobile association
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Laboratory services that are an organization's principal activity and only source of income
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Providing insurance
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Selling television advertising rights
Additional information:
Qualified convention and trade show activities
Return to Life Cycle of a Business League (Trade Association)
Updated: July 2, 2007
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