This information applies to New Jersey law only.

Limited Liability Company (“LLC”) is a hybrid organization that combines the best features of a corporation and a partnership.  Like a corporation, the LLC is a separate legal entity and you are shielded from personal legal liabilities arising out of your company’s actions.  Like a partnership, it enables you to avoid double taxation – all earnings “pass through” to the individual level before being taxed.  It is easy to see why LLCs are becoming so popular these days.

Here is the complete list of benefits that you can enjoy by setting up or converting your current business to an LLC.

• Tax Benefits – No double taxation
• Protection from Personal Legal Liabilities
• Ease of Operation:  Unlike a corporation, no annual report, director meetings, nor shareholder requirements are required.
• Flexibility in Internal Management:  Many aspects of the operation can be freely molded as you wish through the Operating Agreement.  LLC Operating Agreements are not as heavily regulated as corporate by-laws, and in fact, are allowed the broadest possible discretion under the law.  You can structure the LLC as either manager or member managed.  Unlimited number of members are allowed in the company.  Yet, since the law governing the Operating Agreements varies from state to state, it is a necessity to have the advice of an attorney to determine how the LLC law in your state best applies to your situation.

It is critical to set up things properly and in the most efficient way.  For a free consultation on whether LLC would be appropriate for your business or to set up an LLC, please call or email us to arrange an appointment.