The LLC, or Limited Liability Company, is a business structure that was invented to offer an array of advantages typically provided by other traditional business forms. An LLC has the same benefit of limited liability that a corporation does, but without being taxed as its own entity. Instead, it's taxed more similarly to a sole proprietorship or partnership. Like a corporation, a LLC can have unlimited shareholders, called members. But a main difference is if one of these shareholders dies or files for bankruptcy, the LLC is dissolved and will stop operations unless the remaining members form a new LLC. Limited liability has traditionally been a primary goal of many business forms, but since the legislature authorized it in New Jersey, the modern LLC has become increasingly popular.
Can My Business Be Formed as an LLC?
Businesses in New Jersey may organize using whatever form they choose. The office of the Secretary of State is the organization that accepts filings by those who want to open LLC's. However, fees are frequently required to form a LLC. The actions of LLC's as well as the costs for operating them are determined by New Jersey law. Applicable laws are a primary consideration in the decision of whether to organize as an LLC. The right business structure for your company might be difficult to find, but different structures can end up saving your company a lot of money.
Can I Change the Form of My Business to an LLC?
Changing business forms in Oceanport can be done if a company's situation meets certain conditions. Conversion to a LLC is possible if New Jersey law permits it in your situation.
How Can an Attorney Help?
Lawyers practicing business law in New Jersey can advise you on whether it would be favorable for your business to form or convert to a LLC.