What powers does my corporation have?

Unless your company’s articles of incorporation provide otherwise, your corporation has all the same powers as a natural person. See Cal. Corp. Code § 207. Among your corporation’s most important powers in carrying out its business activities is the ability to enter into contracts, including contracts to borrow and lend money and secure any of its obligations by mortgaging or pledging all or any part of its property and income. Your corporation can even lend you money, but only under circumstances showing that the transaction is a true loan and not a dividend in disguise. For more information on that point, see our article on How the IRS Evaluates Shareholder Loans.