Small businesses are close partnerships between individuals where conflicts, disagreements, and misunderstandings can occur between founding members, employer and employee or between co-workers. Continue reading
In our last post, The Jayson Law Group LLC created a scenario between a Landlord and a Tenant where the relationship between the two parties soured as the conditions of the Tenant’s rented dwelling deteriorated. Here is a refresher of the scenario:
A Tenant rents a dwelling from a Landlord. The term of the lease is for one (1) year with a rental amount of $1,500.00 per month due on the first of the month. For the first five months of the lease everything is going fine. The Tenant makes the monthly payments on time. If there is an issue with the dwelling, then the Tenant notifies the Landlord and the Landlord fixes the issue in a timely manner. Continue reading
The Jayson Law Group LLC serving landlords in New Jersey is going to examine the differences between the defenses of Habitability versus Constructive Eviction. This post will look at the habitability defense, our next post will look at the constructive eviction defense. Both posts will use this example below:
A Tenant rents a dwelling from a Landlord. The term of the lease is for one (1) year with rent equaling $1,500.00 per month due on the first of the month. For the first five months of the lease everything is going fine. The Tenant makes the monthly payments on time, if there is an issue the Tenant notifies the Landlord and the Landlord fixes the issue in a timely manner. Continue reading
Contracts are a necessity that pervades the business world. Contracts are legally binding agreements that businesses make with employees, commercial landlords, banks, insurance companies, and customers. Contracts are necessary in a variety of business aspects from loans to employment. In order for a contract to be valid, the contract must bind both parties to the specified agreement. Especially in business, if one party does not hold up its end of the deal, the other party has the legal right to collect damages. In this article our business lawyers of The Jayson Law Group LLC will examine the basic requirements of legally binding contracts. Continue reading
At The Jayson Law Group LLC we want our readers to understand our passion about New Jersey business law and if we can pass on some helpful information in the process, even better. This article is designed to assist you start a business. Whether you need investors or you are starting the business with your own funds, a business plan is invaluable. The content of your business plan depends on the audience with whom you are addressing. Continue reading
Part of our practice at The Jayson Law Group LLC includes elder care legal elements, including drafting a power of attorney or a living will. The Union, NJ elder care attorneys at The Jayson Law Group LLC are providing this information in hopes that readers can make more informed decisions about their future health care. Continue reading
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