The Jayson Law Group LLC previously published an article about the differences between general corporations and LLCs. We elected not to discuss S Corporations at the time, due to their complexity. In this two-part article our business attorneys attempts to simplify S Corporations and boil them down to the basics. At The Jayson Law Group LLC, we want businesses and those looking to start a business to be informed. Continue reading
If a business with more than one owner has not filed state paperwork to become a corporation or LLC, then it is considered a partnership. Partnerships are the simplest, least expensive structures for business ownership by more than one person. But there are some things you should know before finalizing your business plans. For instance, there are two basic types of partnerships: general partnerships and limited partnerships. In this article The Jayson Law Group LLC will cover some of the basic facts of both types of partnerships. Continue reading
When creating the business organization to best suit the needs of the business and the owners, it is important to be informed. At The Jayson Law Group LLC, we have noticed that one of the most frequent areas of uncertainty is whether one should be operating a business as a Corporation or a Limited Liability Company (LLC). This article hopes to demystify a few points of major concern here.
Why an LLC?
Most small businesses tend to gravitate towards LLC organization because of the simplicity of organization and flexibility of limited protection. For example, businesses holding property that is likely to increase in value especially prefer LLCs because of the tax laws written for LLCs and property ownership. With C corporations, shareholders and the corporation are subject to tax on the increased property value when the property is sold. But, in contrast, LLC members, as well as S corporation owners, are only taxed once, because the business’ tax liabilities pass to them; the LLC is not taxed on its income.
In addition, LLCs are what is called, “member managed.” This means that one or more of the owners of the business also play active roles in the day-to-day management of the business. But this means that in most situations, unless the operating agreement says otherwise, if one member leaves the LLC or becomes unable to manage the LLC, the business dissolves. Unless there is a buyout provision in the operating agreement, the remaining members must create a new LLC in order to continue the business.
Why a C Corporation?
There are several other factors that may lead owners to favor organizing their business as a corporation. For instance:
If you intend to provide fringe benefits to owners
In a corporation shareholders (owners) are often employees. The corporation can hire an owner as a CEO, pay a tax-deductible salary, and provide fringe benefits as well. The corporation can deduct the cost of benefits and they are not counted as taxable income for the employee. LLCs can only deduct a portion of benefit premiums.
If you intend to offer stock options and stock bonus incentives to employees
LLCs do not have stock to offer employees. While employees can have a membership interest in an LLC, the process can be difficult and unattractive. So, if you plan on offering partial ownership to employees as incentives or bonuses, a corporation may be better suited to your needs.
In addition to the C Corporation, there is the S Corporation. Self-employed owners, due to complex self-employment tax laws, often adopt a S Corporation. S Corporations will be discussed and reviewed in full in a later article. Check back with The Jayson Law Group LLC for more information on S corporations and self-employment tax laws.
Our New Jersey business attorneys try to act as a resource for business operation and organization. We offer a wide variety of business and legal expertise and services. Click here or call us today at (908) 258-0621 for a consultation with one of our experienced and knowledgeable Union, NJ business lawyers.
The following is an article intended to educate readers about key terms to expect or include in a typical lease agreement.
The Jayson Law Group LLC does not want to see you running into endless problems because of an incomplete lease agreement. In order to help you avoid disputes, we have provided this article listing some of the key provisions that every lease agreement should include:
Know who you are renting to and let them know how to contact you. The tenant may be referred to as the “lessee,” the landlord as the “lessor,” and both can be called “parties” to the agreement. If a property manager or company legally operates on the landlord’s behalf, their name and address should also appear on the agreement. Landlords should also expect the names of all tenants living in the rental unit over the age of 18. Rules on guest stays should also be outlined within a rental agreement. Continue reading
Estate planning can be a complex and emotionally difficult affair, but the proper guidance can make all the difference. The Newark estate law attorneys at The Jayson Law Group want to help you secure your future and the future of your loved ones when devising your estate plan. We have outline a few simple pointers and explanations regarding wills and trusts in the state of New Jersey to help you effectively draft your estate plan for your family’s future. Continue reading
Thinking about entrepreneurship; already an entrepreneur? The Union, New Jersey business lawyers at The Jayson Law Group, LLC have some things for you to consider. There are several different types of business entities available in the state of New Jersey: a corporation, a DBA or sole proprietorship, a partnership, and a limited liability company. A limited liability company, or LLC, is a business entity that utilizes characteristics of both a corporation and a sole proprietorship. Like a corporation, the owners of an LLC are not personally liable for company debts. Like a sole proprietorship, an LLC has operating flexibility and a “pass through” entity for tax purposes. Meaning that the LLC does not directly pay taxes on its profits, but rather profits and losses are “passed through” to the owners who must then pay tax on their share of the LLC income. Ultimately, an LLC can offer personal protection, reduce taxes, and has fewer formalities than a corporation. Continue reading
Business is a large and complex field. Properly managing a business can sometimes be too much for someone to handle. Questions may abound. What do I have to do to sue? Do I have to domesticate a judgment in New Jersey? What do I do if a close partner company shuts down while still owing money to my business?
Businesses shut down for many reasons, whether a business cannot survive the bad economy, poor management, or it is simply a bad business. One outcome of a business shutting down could be that the business files for Chapter 11 Bankruptcy. But where does that leave the lending or creditor party? If a business has claimed bankruptcy there are statutes in affect making it difficult for creditor’s to collect money owed to them by the delinquent party. When dealing with debt collection, it is important to understand those statutes and the options you have as an owed party. As a Union New Jersey business law firm, The Jayson Law Group LLC, is dedicated to helping you understand your rights and fight for what is owed to you.
When approaching an attorney about creditor’s rights after a failed business deal, it can be helpful to know a bit about Chapter 11 Bankruptcy. Firstly, Chapter 11 is most utilized by businesses as opposed to individuals (but individuals can also apply for Chapter 11). With most instances of Chapter 11, the debtor maintains operation of the business and instead, is considered a debtor in possession. The debtor in possession is subject to the jurisdiction of the court, which often calls for business restructure. Sometimes this includes being able to reject a current contract and put litigation on hold with an automatic stay.
The Newark business lawyers at The Jayson Law Group LLC, can assist in protecting creditor’s rights against the potential harm of Chapter 11 statutes. For instance, the most common avenues include: Searching out a chance in the reorganization planning for creditors to vote against the confirmation and thus possibly regain their assets from the debtor. Additionally, a prepackaged bankruptcy plan can be agreed upon between creditor and debtor, benefiting both parties. Even, determining your securities can make a difference in your case. Call the Union, New Jersey business lawyers at The Jayson Law Group LLC today to protect your rights as a creditor and successful business.
The New Jersey Landlord/Tenant Laws are in place to protect both parties from misconduct. For instance, New Jersey Eviction Laws 2:18-53 & 61.1 are utilized to put a stop to criminal activity such as drug dealing and unlawful possession, use, and manufacture of weapons as well as other misconducts or threats to the safety of others. If the landlord knows these crimes are taking place on his or her property, the landlord is required to give the tenant eviction notice within 30 days. Additional grounds for eviction include tardy rent payment, breaking any part of a lease agreement including damage to the property, and continued complaints of disturbance or nuisance. Continue reading
In Part 1 of this article, we read about civil litigation that followed an accident in which an injured victim of a personal injury case was initially denied compensation because the driver was not on the car owner’s insurance policy and the policy was therefore, voided. The insurance company’s declaratory action regarding the victim’s compensation was denied. Keep reading to find out what happened in the appeal. Continue reading
In recent years, the Securities and Exchange Commision (SEC) has begun to take a more proactive approach in ensuring transparency among major financial entities. This proactive approach was established in The Dodd-Frank Act. One of these reforms has been to create legislation that requires the institution to provide disclosures about resource extraction payments. This legislation is designed to prevent fraud in the world of alternative investments.
If you are considering applying for a contract with a certain governmental entity, then you may wish to meet with a Union New Jersey Business Lawyer. A New Jersey Business Lawyer can help you to understand the terms of the agreement. Our office also serves Elizabeth and other nearby North Jersey towns and cities.
Any entity that engages in the production of commercial oil or other natural resources will be required to abide by the new legislation. The SEC will now require that these entities make reports on a cash-basis. These entities will need to completely redo the way in which they do their accounting.
Those who wish to ensure that they also abide by this disclosure method may wish to meet with a Business Lawyer in Union or Newark New Jersey. A Business Law attorney can help you to see whether your accounting methods suffice for the new SEC legislation. A Newark Business Law attorney can also work to explain the specific ramifications of this legislation for your commercial oil enterprise. It will be important that you understand the law and abide by it in the future, otherwise you may face a hefty fine from the SEC. In some cases, the SEC may even find that a lack of disclosures constitutes grounds for a charge of fraud. You do not want this to happen to your commercial resource enterprise.
An attorney from The Jayson Law Group LLC can help you to figure out ways to make disclosures and continue to have a competitive advantage. One of the major concerns of this legislation is that oil produces will not be at a competitive disadvantage for sharing certain information. If you prepare ahead of time, this does not have to be you. Just because you make disclosures to the SEC does not mean that you have to lose out on clients to all of your competitors.