Our law firm has over 40 years' experience in advising and protecting the interests of our business clients.
We can help you decide the best structure for your business, provide advice and guidance, draft the documents necessary to form the business, draft operating agreements and bylaws and negotiate contracts (including agreements to protect the business's sales, property and to set ground rules should there be a dispute with a business partner or member).
We can also help you to buy or sell property, negotiate leases and prepare non-disclosure agreements for your employees to protect valuable business information. We can help you with sales agreements that will help protect your right to be paid for your business' sales or work.
Business Formations in New Jersey
If you are starting a business, the first decision to make is what will the structure be? Will you be putting your own money or other assets at risk? The correct structure can protect your home, property credit and bank account(s).
A business structure is the legal classification of a business. This determines taxes, liability, and other legal rights and responsibilities.
A range of business structures are available in New Jersey, including:
- Sole proprietorships
- General partnerships
- Limited partnerships
- Limited liability companies (LLC)
The best business structure for your business depends on a range of different factors.
What to think about in deciding the best structure for your business in New Jersey?
Maintaining Control of your New Jersey business
What degree of control you want to retain over your business? This is especially important to consider where multiple owners are involved in making decisions.
A sole proprietorship allows for you to retain the most control over your business. As the only owner and operator, a sole proprietor can run their business how they want to.
Corporations and limited liability companies are answerable to shareholders or members who elect a board of directors to manage the organization's day-to-day business.
Your business structure determines the extent of your personal liability for the debts and obligations of the business. Some structures offer better protection against personal liability. However, liability and control are usually directly proportional. The less your personal liability, the less control you typically exercise over the business.
In a sole proprietorship, for example, the owner is personally responsible for the business' liabilities and debts. Their personal assets may be used to satisfy the business' debts. They can also be sued in relation to the business' activities. Your home, bank account, cars and other property are not protected.
In a corporation, limited liability company or limited partnership, limited members, partners or shareholders have a separate legal identity from that of the business and their personal liability is limited to their investment in the business. There may be personal tax reasons for choosing one of these forms over another. We work with your financial advisors to help you choose the best form of business for you.
Our law firm is here to help you make the best decisions for you and your New Jersey business. Call our office today to schedule your free 1 hour consultation.