Home » Guides » Legal » Legal » Making the Most of Incorporating a Business in New Jersey

Making the Most of Incorporating a Business in New Jersey

Protect your assets with an NJ incorporation

By Emmet McMahan
The key to making the most of incorporating a business in New Jersey is the decision to incorporate your business. A corporation affects your ability to gain capital, controls the amount of debt you assume and determines your tax obligations. However, these advantages must be balanced against the additional taxes your business will incur.

You should also consider other types of business entities when you form a corporation in new jersey. For example, a New Jersey partnership is subject only to personal income tax, unlike a corporation.

There are several options for forming a company under New Jersey corporate law. These include:

1. A New Jersey incorporation as a profit or non-profit corporation. An S corporation (S-corp) is taxed under Subchapter S of the Internal Revenue Code which generally does not include income taxes.

2. A New Jersey limited liability company. This is a hybrid business entity that shares the characteristics of both a corporation and partnership. It pays incomes taxes and is more suitable for a small business with one owner.

3. A New Jersey limited partnership. This type of partnership has limited partners in addition to general partners.

 

Determine the type of corporation that best suits your business when incorporating in NJ

The most important factors to consider are the personal liability obligations and tax implications. You should also familiarize yourself with the operating requirements and reporting regulations.
Try: The NJ Business Portal has detailed descriptions of the different business types in New Jersey including a comparison chart. LearnAboutLaw.com provides a summary of the steps needed for forming each type of business and includes links to the required resources.

Find a New Jersey incorporation lawyer

Incorporating in New Jersey must comply with the disclosure, operating and reporting requirements. New Jersey corporation law specifies these requirements in detail.
Try: The Corporate Department of Archer & Greiner provides a range of services including the formation and structuring of business entities. Sills Cummis & Gross has a location Newark and has one of the largest corporate departments in New Jersey.

Register your business through a New Jersey incorporation service

You must file the registration forms and pay the associated fees as required by New Jersey corporation law in order to form an NJ corporation or LLC in NJ. You may also need to file Articles of Incorporation, depending on the type of corporation you decide to register.
Try: Incorporate Fast provides corporation filing services in New Jersey and summarizes the required steps. InfotaxSquare.com can help you create a variety of business entities in New Jersey and also provides many related resources.

 

  • Pay any annual fees and filings needed when you incorporate New Jersey businesses. Corporations are automatically C-corps unless they specifically register as S-corps with the primary difference being the way they are taxed. One person may frequently hold more than one position in these corporations and many if not all shareholders are also directors in a small corporation.

Copyright © 2011 Business.com, Inc. All Rights Reserved.