New Jersey Business Formation Attorneys
Business formation is a fundamental aspect of starting a new company, especially when starting a partnership. It’s important to observe that the requirements for forming a business may vary from state to state and it also depends on what type of industry you are in. If you are forming an LLC, a corporation, a sole proprietorship, nonprofit, or a partnership, the business formation attorneys at Borrus, Goldin, Foley, Vignuolo, Hyman & Stahl, P.C. are highly experienced in assisting you with everything you need to get your business started.
The four main types of business formations are a sole proprietorship, partnership, LLC, and a corporation. Each type of business formation has its own advantages and disadvantages.
Four Main Types of Business Formations:
1. Forming a Sole Proprietorship in New Jersey
With a sole proprietorship, all of the assets belong to one person and he or she has not created a separate business organization. Oftentimes, small businesses operate as sole proprietorships. Under a sole proprietorship, there are no legal documents that need to be written except for possibly a business license, depending on what your enterprise is. You have the option to do business under your own name or you may apply for a name to give to your business. One of the main burdens of a sole proprietorship is they are susceptible to claims from business creditors. A sole proprietorship has no protection from lawsuits or creditors. Both personal and business assets are at risk to claims from creditors. Your personal assets can be capitalized to appease any debts or legal judgments. Therefore, it can be beneficial for a sole proprietorship to retain a lawyer, more specifically, the attorneys of Borrus, Goldin, Foley, Vignuolo, Hyman & Stahl, P.C.
2. Forming A Partnership in New Jersey
General Partnerships
– Differ from a sole proprietorship, being that general partnerships are joint businesses whose primary responsibilities are management, profits, and especially debt liability. If you are planning to be in or currently in a general partnership, it is especially important to have an attorney. It is imperative that anyone entering into a general partnership knows either partner can be liable for all of the debts in the partnership. Also, any one partner is capable of binding the two partners under contracts. Essentially, a general partnership is a joint effort between two or more sole proprietorships.
Limited Partnerships
– Similar to a general partnership, a limited partnership is a partnership where only one partner is required to be the general partner. When people are putting together a real estate development or investing in a business, it is very common for individuals to go in a limited partnership. In this type of formation, there is a written agreement between the general partners even though there are no filed state documents. Generally, each partner invests a certain amount of funds. Likewise, each partner expects to receive an expected amount of the profits.
3. Forming A Corporation in New Jersey
Corporations are formed under state approval and work as acting persons to maintain a business. A corporation can sue and can likewise be sued. They can also issue stocks to increase capital. Since corporations are legally separate from their owners, liability from debt or any kind of monetary damage becomes limited to the company’s assets.
4. Forming A Limited Liability Company, LLC in New Jersey
An LLC, or a limited liability company is a business whose owners actively participate in managing the company, but unlike a general partnership, they are protected from any personal liability from the company’s debts or liabilities. An LLC has both characteristics of a corporation and a partnership.
Attorneys To Help Form Your Business
If you are looking to start or join any of the aforementioned business types, the attorneys atBorrus, Goldin, Foley, Vignuolo, Hyman & Stahl, P.C. can counsel or assist in your decisions. Our attorneys can get you started on a business formation plan to enable you to focus on the development and growth of your company.
