Tag Archives: BusinessFormation

4 Steps to Creating an LLC

When creating an LLC, you’ll have to complete each of the following steps without error. 4 Steps to Creating an LLC Pick a Name – It sounds like an easy enough task, but there are rules for coming up with a name for a limited liability company. For example: The name cannot match any other LLC on file The name must not include any word or phrase which is prohibited by the state. The name must include the phrase “limited liability company” or an abbreviation at the end. This includes “LLC,” “L.L.C,” and “Ltd. Liability Co.” The name cannot be in violation of another business’ trademarked property. Certificate of Organization – After you have settled on a name for your LLC, you will have to file the appropriate paperwork with the state’s LLC office. The documents you are required to file in order to get a certificate of organization will ask…
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Can I Buy an LLC with Another LLC?

Ownership of an LLC is often times a partnership or a group, but it can be an individual as well. Those that are sole owners likely have a lot of responsibilities, especially if they own or are a part of multiple LLCs. It may be extremely beneficial to look into combining the businesses. Talk to a business attorney to learn more about how to buy an LLC with another LLC. Benefits of One LLC Owning Another There are a variety of benefits that come with having one LLC as an owner, or part-owner, of another LLC. Here are some of the most common: Limited Liability – A limited liability company limits its liability when it’s owned by another limited liability company. Get it? Limited liability. Much of the businesses liability is taken on by the owning LLC, which can offer the owned property much more flexibility. Avoiding IRA Penalties –…
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How Do I Convert an LLC into a Corporation?

So, you want to convert your New Jersey LLC into a for-profit corporation? The first thing you should know is that conversions are always subjective, varying highly depending on the particulars of your situation. The process can be quite complicated, and the consequences of handling a merger or conversion improperly can be devastating, meaning that hiring a tax consultant or business attorney is highly advisable. The Difference Between a Merger and a Conversion There are generally two ways to convert an LLC into a corporation, a statutory conversion or a merger. A statutory conversion does not require you to create a separate corporation prior to converting, meaning it is often much cheaper and simpler. However, 15 states, including New Jersey, do not allow statutory conversion of LLCs. Instead, business owners are required to do a statutory merger; a much more complicated process. Planning a Statutory Merger in New Jersey Mergers…
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Choosing the Best Partner: Business Not Romantic

Choosing the right partner can be a difficult task and requires a lot of thought. Making a wrong decision here can lead to disaster in the future. Whether you are just starting out or have been out there for a while and no longer want to do it alone, here are some tips to help you find your other half. We’re talking about business partners here by the way; you’re on your own if you’re looking for romance. Test it out- The easiest way to test compatibility is to just do a trial run. Spend a little time working together and see how the other thinks and operates. This way, if there are any blood-red flags, you can call it quits before anything gets set in stone. Create a partnership agreement– Once your trial period is over and you want to upgrade to the full package, have a lawyer write…
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Legal Mistakes to Avoid as a Small Business Owner

Every small business comes with its own issues, but some issues are universal and can be easily avoided if you plan ahead. Use this list of commonly made mistakes to dodge potential business killers in the future. Get a patent, copyright, or trademark. Make sure to make the necessary arrangements so that your intellectual property is safe. If you do not, another company may take your ideas and get them patented for themselves. An attorney can help you to take the right steps towards getting patents, copyrights, and trademarks, and make sure you are not infringing on existing intellectual property. Establish the right legal structure. Find out which legal structure is best suited for you, whether it’s LLC, C or S corporation. Each structure has its own pros and cons. Have a shareholders agreement. If a primary shareholder leaves or you want to sell the company, not having a shareholders…
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