Legal Question in Business Law in New Jersey

Re: Questions On Incorporation

I agree with the other attorneys. They did a good job of responding to your post so I won't repeat what they said. I don't handle what you are looking for but I can put you in touch with a good attorney if you'd like.

Re: Questions On Incorporation

I will attempt to answer your questions; however, you need a good lawyer and a good accountant.

Corporations can have one person involved or many people, your choice. Your name would be disclosed on certain documents. As to credit, that is up to individual creditors and there are no hard rules or requirements. Dissolution can be easily done, but there are certain requirements, such as filing the last tax returns.

Keep in mind that this advice is based purely on the little bit of information that you have given to me. There certainly may be other factors that would change my opinion. Further, no one can rely on advice from an attorney who has not been retained. Since it appears that you have not retained an attorney, you may want to contact an attorney who deals with new businesses (either me or someone else) to discuss your matter in more detail. Only then will you be able to rely on the advice. If you call me, mention Law Guru and your first one hour consultation will be free. Good luck! Rob Gleaner

Re: Questions On Incorporation

It is likely that an LLC is a better form of business for you than a corporation. It provides the protection of the corporate form with lower expenses and less paperwork. It is also very flexible in terms of management structure which, among other things, permits you to draw your money as an employee, an owner, or both depending on how your circumstances best fit. I teach a short, evening course on the subject at Camden County College beginning next Tuesday. Sign up. Get more information cheap. Or call and we can discuss it; first consultation free.

The bankruptcy will be more of a problem for institutional lenders than it will for trade creditors. Vendors rarely get beyond a name because they don't extend much credit and are not doing it for a long period. Banks and more sophisticated lenders will learn of the bankruptcy or have the benefit of the knowledge (such as through D&B). You need to compensate by having a good business plan that may help you get credit but, more importantly, will help you determine how much working cash you will need. You can survive in business and repair your credit if you know your limits and operate within them.

As to winding up of a business, the LLC is much easier and less expensive than a corporation.

See also: http://info.corbettlaw.net/lawguru.htm