IRS Logo
Print - Click this link to Print this page

Line of Business Defined

This term generally refers either to an entire industry or to all components of an industry.  For exemption purposes, a line of business is a trade or occupation, entry into which is not restricted by a patent, trademark, or other means that allow private parties to restrict the right to engage in the business.  It does not include a group composed of businesses that market a particular brand within an industry.  Thus, for example, an organization that served the needs of users of a specific brand of computer or assisted franchise owners of a particular brand of products promoted only a segment of a line of business and so was not exempt under section 501(c)(6).


Return to Life Cycle of a Business League (Trade Association)

 

Page Last Reviewed or Updated: 25-Apr-2014