Corporate Formation in New Jersey

New Jersey Legal Services for Corporations

Whether you are in the process of incorporating a new business, conducting ongoing business, or engaging in business litigation, having the best legal representation is a key factor in the success of your business. In New Jersey, the firm of KingBarnes will provide you with the knowledgeable legal counsel you need and the convenience of local availability in Atlantic and Cape May Counties.

Is a Corporation Your Best Choice of Business Entity?

If limiting your liability is of paramount concern, you may decide that a corporation is your best choice when creating a business entity. A corporation is a legal entity that is separate and distinct from its individual owners and is formed exclusively to conduct business. The corporation’s owners cannot be held liable for the corporation’s debts or torts. This is a compelling advantage to investors. The disadvantage to a corporation is the much greater expense and much larger amount of paperwork required relative to other types of business entities. A corporation, by New Jersey law, must always be represented by an attorney when involved in litigation. It is always in your best interest to have an attorney handle the many tasks and volumes of paperwork that incorporation requires and to be on call to support your company in any legal matters that should arise.

Services for Startup Corporations

If you are a start-up business and decide that a corporation is the best business entity choice for your company, we:

Help you select a business name for your corporation and check availability
Help you appoint a Board of Directors
Obtain and file your company’s Certificate of Incorporation with the New Jersey Department of Revenue
Draft your corporation’s bylaws
Conduct an organizational meeting
Issue stock certificates
Obtain all necessary licenses
Ensure compliance with regulatory agencies
Obtain an Employer Identification Number (EIN) from the IRS
Report New Hires to the New Jersey New Hire Reporting Directory
Arrange for the purchase of Workers’ Compensation Coverage
File your annual report
Advise you on whether to create an S Corporation, and if needed, file an S Corporation election with the federal government and State of New Jersey

C or S Corporation: What Are the Differences?

A C Corporation is taxed as a separate entity and must report profits and losses on a corporate tax return. The C Corporation pays taxes on its corporate profits. After the profits are taxed, the corporation will generally pass along all or part of the remaining profits to the shareholder. The shareholders are then taxed on the dividends they receive, which means that those profits that go to owners (shareholders) are taxed twice.

You may prefer to circumvent the double taxation that occurs in a C Corporation by creating an S corporation, which is pass-through tax entity. If you choose an S Corporation, the corporation itself will not have to pay income taxes. The shareholders will have to include their share of the corporation’s profits on their personal tax returns. If the corporation shows a loss, shareholders can offset other income by deducting the corporate losses, not to exceed the amount of their investment in the company.

A Full Range of Corporate Legal Services at KingBarnes

In addition to assisting you with the many requirements of incorporating your business, the attorneys at KingBarnes are available to help you in various ways. These are a few of the many services we provide to corporations:

Obtaining financing
Negotiating loan terms and creating loan documents
Negotiating and drafting commercial contracts, leases, and other business agreements
Handling all regulatory compliance
Obtaining a liquor license
Drafting shareholder agreements
Drafting joint venture agreements
Creating complex financing agreements
Representing your company’s interests in business litigation