Using Incorporating a Business in New Jersey
Form a business with New Jersey incorporation
Making a new corporation is one of the most common reasons for using incorporating a business in New Jersey. A small business may prefer to file the documentation needed to incorporate a business directly with the state. There are also many companies that provide business formation services for a fee.The most important factor in incorporating in NJ is choosing a specific business structure. New Jersey partnership law makes some important distinctions between a corporation and a partnership. A partnership generally does not pay a business tax although the partners are liable for business debts.
Corporate law defines the way in which the following entities interact:
1. Shareholders that collectively invest in an NJ incorporation. Shareholders may hold special privileges such electing a board of directors, proposing resolutions and sharing in the company’s income.
2. Directors that oversee the company’s activities. The activities of the board of directors are typically determined by the company’s bylaws. The board of directors and the shareholders are typically the same group of people in a small business.
3. Employees that provide expertise and perform labor for the company. Employees are also shareholders in many cases.
Select the best structure for your business when you incorporate in New Jersey
Your choice of business types can include corporations, full partnerships and limited liabiliy partnerships (LLCs). There are many sites that summarize business laws in New Jersey and you may also need an attorney to explain the laws regarding an LLC in NJ to you.
Try: Ronald J. Cappuccio allows you to answer a series of questions to help you decide which business type is best for you. Meyner and Landis in Newark offer specific expertise in helping clients choose the right structure when forming a new business.
Create a business with a New Jersey incorporation service
There are many online services that can submit the required forms on your behalf in exchange for a fee. However, you will still need to comply with the disclosure, operating and reporting requirements.
Try: The Division of Corporations offers a range of packages that allow you to incorporate your New Jersey online. BusinessNameUSA.com provides a business corporation service and provides a range of related resources specific to New Jersey.
Incorporate in NJ by yourself with free resources
Each state has a department that is responsible for the formation of new businesses. You can complete these forms yourself and submit them directly to the correct government department.
Try: The State of New Jersey website offers a checklist for starting a new business and also has all the forms you will need. Gaebler.com provides useful links to help you incorporate New Jersey businesses.
- You will need to select a name before you form a corporation in New Jersey. Many online services provide a name search function to determine if a particular name has been used before. The required forms will also provide spaces for more than one business name in many cases. This increases the chances that an unused name can be found.
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