Legal Question in Business Law in New Jersey

Hello,

I have 2 or possibly 3 business entities to set up. I am a little confused as to how

we should proceed.

1. The primary company (parent company for lack of a better word)

2. The second possible company is really more like a service we are

offering to public schools. Should I set that up as a business on it's own or

will it be okay to operate under the parent or umbrella company as a service we

provide?

Note: I was considering setting the service up as a non-profit business, but my

concern is that I think we may run into problems with recordkeeping because

there will be a lot of things/instances that may appear to be a for profit

company.

3. As part of the company referenced in #2...the reason we were considering

non-profit status is that we want to be able to help support or provide aid to

students who are qualified to be in the program but don't have the funds

to participate in some of the activites the program would offer. So should I set

up an alternate company as a non-profit Foundation for those situations. A

business unit that is separate from the parent company but could be set up as a

501c3 company to take donations from companies or individuals to support these

situations as well as other initiatives that would benefit children in

underserved communities.

Hopefully I haven't thoroughly confused you too, but any assistance with direction

would be helpful.

Thanks,


Asked on 1/21/11, 8:43 am

4 Answers from Attorneys
Barry Gartenberg Barry F. Gartenberg LLC

Thank you for your LawGuru question. I regularly handle matters such as the one you describe. But your question cannot be meaningfully addressed in a short email. I'd be pleased to speak with you for 15-30 minutes, free of charge, to discuss your needs. Please call me at 973-921-0600. Thanks.

Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer. For me to give you legal advice or opinion, you would need to hire me to be your lawyer, and then we would need to discuss this in detail and go over the documents.

With best wishes,

Barry F. Gartenberg, Esq.

Please visit my website! www.bgartenberg.com or call me if you�d like to learn more about me or my practice. Thank you.

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Answered on 1/26/11, 8:59 am
Robert Davies The Davies Law Firm, P.A.

I understand what you are trying to do. It will take more careful planning than I can give you over this internet bulletin board. Why don't you find a business attorney near you (if you are near me, please call!) and get some assistance.

Robert Davies, Attorney, 201 820 3460

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Answered on 1/26/11, 9:51 am
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I agree with the other attorney answers. These are questions that cannot be answered on an internet bulletin board. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 1/26/11, 3:56 pm
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

You have two separate concepts. First, you need to establish a regular LLC for your profit-making business.I have information about this on www.TaxEsq.com

Secondly, you need to set-up a Non-Profit Corporation. This is far more complex and a much longer (and more expensive) proceedure than forming your for-profit your business. This requires a charitable purpose (which you have) but also requires extensive information to get IRS approval. I have more information about this on www.NonProfitEsq.com

Plese call me at 856 665-2121 and we can discuss the steps you need to proceed.

I hope this helps!

Ron Cappuccio

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Answered on 1/29/11, 3:02 am


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