When you decide to form your own business, you may have questions about what type of business formation to use. There are sole proprietorships, corporations, partnerships, and limited liability companies. All have their benefits and drawbacks, but knowing which one is right for your specific situation can be complicated. A NJ LLC formation lawyer can help you decide if a limited liability company (LLC) is the right business form for you and can also help you prepare and file the paperwork necessary for forming an LLC.
LLC Creation
Forming a sole proprietorship or partnership is a little less difficult than forming a limited liability company. For a limited liability to be formed legally, it must be formed in the state in which the business operates. This means that paperwork and fees must be submitted to officially create an LLC. Under the guidelines for LLC formation, you must designate that the business is an LLC by using the terms “LC,” “LLC,” or “limited liability company” in the official name of the company. You must also file articles of organization for your limited liability company. An NJ LLC formation lawyer can help you prepare the paperwork and ensure that it is submitted correctly.
LLC Continuity
When you form a limited liability company, you must think about the continuity of the company. What will happen if you pass away? What happens if you decide you want to retire? If you do not specify what you want to happen to the LLC if you leave, it will dissolve. However, you can provide other instructions in the LLC’s articles of organization. For example, you may designate someone to step in and run the company if you can longer to be involved in the business. An NJ LLC formation lawyer can help you prepare your articles of organization and ensure that they contain all of these provisions.
LLC Control
The articles of organization for your LLC are extremely important. This document also outlines how the company will be controlled. Company members often share the responsibilities of running the company and split the income. You can specify the responsibilities of each member or provide for a specific percentage of the company’s income to be given to each member by including this information in the articles of organization for your limited liability company. Since you don’t want to leave out important information, you can work with an NJ LLC formation lawyer to ensure that the articles of organization outline exactly how you want the business to be run.
LLC Liability
One of the most attractive benefits of forming an LLC is that the members of an LLC are not personally liable for the company’s debts. In a sole proprietorship, the business owner is personally liable for debts or other claims. That means a business owner could be forced to give up his assets to pay off business debts. The members of an LLC would not have to do this because their assets are considered separate from those of the company.
Working with an NJ LLC formation lawyer can help you determine if a limited liability company is the right choice for your new business.
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