What is a Limited Liability Company?
A limited liability company or an “LLC”, is a corporate structure that protects owners from personal liability for the company’s debts or liabilities. Forming an LLC in New Jersey can be simple, but requires some pertinent steps:
- Choose a name for your LLC. In New Jersey, the name must contain LLC in it. The name also cannot be the same as other business entities in New Jersey. As a result, those who wish to register a business have the opportunity to view if their prospective business name is available via the New Jersey Business Record Service business name database.
- Choose a registered agent. Since you will be required to identify a registered agent when you create your LLC and file the appropriate documents, you should choose an individual to serve as your registered agent. This person should be someone who agrees to receive legal documents on behalf of the LLC.
- Complete the Public records Filing. This filing will include the LLCs name and the business address, the name and address of the registered agent, the business the LLC is in, and the names of the members. Filing will require a $125.00 fee.
Limited Liability Companies: Debts & Business Liabilities
Since limited liability companies can protect an owner from debt, liability, and any judgments that the business acquires, it is an attractive business formation option. However, business owners should be well advised that protection is not absolute. There may be instances wherein an LLC owner may be personally liable. Such instances may exist when an owner makes a personal guarantee, commits fraud, or if the owner personally injures another person.
If you would like to know more about forming a business, or if you required legal advice on whether or not an LLC is the right choice for you, it is important to contact an experienced business law attorney.
The law firm of Mattleman, Weinroth & Miller, P.C., is composed of experienced attorneys throughout the states of New Jersey and Delaware. Please contact the office for a free initial consultation and get any questions answered regarding your specific case.