When a prominent New Jersey pharmaceuticals company opened and started manufacturing a topical skin cream, the effort was more complex than just a typical business start up. The principals of the new company had recently sold a very similar multi-million-dollar company in the same part of New Jersey. Legal discussions ensued between the new company and the other business now owned by a different group of principals.
Because of the wording of non-compete agreements in the sale of the sold business and because of carefully crafted business formation documents, the group’s new business is legally enacted. Careful planning of the initial business structure permitted this success. It will likely take some effort, however, before the group reaches the sales levels of the old business.
New Jersey Business Formation
Individuals forming businesses in New Jersey need to take specific steps to abide by state rules and regulations. The primary obligation of such organizations is to structure and register their efforts with the New Jersey Secretary of State. These principals should classify their business operating structure as either a:
In addition, there are numerous sub-classifications from which business owners should choose:
- Limited liability partnership
- Limited liability corporation
- Professional corporation
- Franchise corporation
- Not-for-profit corporation
- Charitable foundation
- Charitable trust
New Jersey Business Planning and Organization
Planning a business is more complex than just having a good idea and getting to work. Qualified New Jersey business planning attorneys can work with new business owners to conduct continuity planning, tax efforts, the structure of corporate ownership, the map of the decision making processes and the structure of corporate governance. Well-thought-out businesses have beginning planning efforts, proper documentation, skilled and informed leadership and a succession plan.
Qualified New Jersey business formation attorneys work with business owners, the Secretary of State and the IRS to review laws overseeing the specific industries. These lawyers draft the plans and documents necessary for an organization to conduct business.
The business formation process is the first step to running a successful business. The plan of a business should be reviewed regularly, so a business’s goals are kept in mind and met. A qualified New Jersey business formation attorney can be the extra hand a company needs to protect itself from the legal proceedings that can arise during the natural course of conducting business.