Starting or forming a new business is no easy task. It is a bold endeavor and having proper documentation at formation is a key step in ensuring the success of a business. Stone Law can advise entrepreneurs on the formation of a partnership, limited liability corporation (LLC), or corporation. Each type of business has its own structure and requirements at formation.
For partnerships, the first step is choosing a name. Typically the name of a new business will be trademarked so it is prudent to check that the proposed name is not already trademarked by another business. If the partnership will simply be using the name of its owners, then a name search is unnecessary. Similarly only partnerships with names different than its owners will need to register with the county clerk in the county which the partnership is located.
An attorney is crucial for drafting a partnership agreement. It is not a legal requirement but it will be helpful to clearly dictate the roles of each partner, especially if there is a dispute in the future. New businesses must register with federal and local tax divisions, which a lawyer can help with. An attorney would also check if the partnership needs to obtain any local licenses.
Forming an LLC requires a couple more steps than a partnership. An LLC must create a name unique to its state. States may also require a public records filing. In New Jersey it is a Public Records Filing for New Business Entity. When making the state filing the new LLC should also appoint a registered agent, which is also required in New Jersey.
Corporations have their own set of documents to produce at formation. Each state has its own requirements for corporate directors. In New Jersey, a corporation must have at least one director and directors must be at least 18 years old. The names of the director(s) must be included in the Certificate of Incorporation. It is highly advised that a lawyer draft this document which contains information on corporate directors, stocks, and a registered agent.
If you are thinking about starting a new business you can contact the attorneys at Stone Law at 732-444-6303 or leave us a message on our website.