It is considered fraud to register a business just to get store discounts / benefits?
<p>I went to this store where in order to buy merchandise, I need to have a membership card from them, but in order to get the membership card, I need to own a business. I found that some of the things that they sell are very cheap, so if I am able to get the membership card, I might be able to save a lot in groceries. But here is the thing: I do not own a business.</p>

<p>I was wondering, it is illegal/fraudulent to register a new business, just to be able to get the membership card from the store?</p>

<p>Assume that the business will not offer any services and will not sell anything (which I do not know if this is possible at all). It will solely exists to get the membership card from this store, and to get other business discounts.</p>

<p>It seems unlikely, though I am not licensed to practice law in the United States and you should consult an attorney who is licensed in the relevant jurisdiction for legal advice.</p>

<p>Generally, to prove fraud, there must (among other elements) be a false representation of a material fact. Assuming that you have formed a business in accordance with the relevant laws, there is a business that you own. This satisfies the criterion that you have specified, i.e. that to get a membership card, you need to own a business. You have not falsely represented a fact about the business so far, since it exists in accordance with the law. There is no requirement in any jurisdiction which I am familiar with where a entity must engage in a certain level of trade to be considered a business.</p>

<p>This doesn't necessarily mean that you're good to go. This store may, as a condition of its membership, require that the business engage in a certain level of trade to be eligible for a membership card. If this is the case, and you obtain a membership card even though your business does not meet this level, then fraud may have occurred. </p>

<p>Finally, I should point out that incorporating a company does generally cost money, and the expected savings may not necessarily be worth it.</p>

united-states business