Legal Question in Business Law in New Jersey

This is seemingly an easy question to ask but in reality difficult to answer as the answer depends on your specific situation for example, the nature of the cooperation between the two founders, liability considerations, tax considerations, whether investors will be needed, specific DOD requirements, corporate governance considerations, state where you will primarily be conducting your business and more.

This is an important decision to make because once you commit to a corporate form and state and register with the various governmental entities it will be difficult to change the registration and/or quite expensive. Not to mention that you may be paying more taxes and filing fees than necessary throughout the company's existence.

Therefore this is a type of decision that needs to be done with the help of a startup attorney. A little $ investment in legal fees will go a long way.

I offer a discounted flat fee consultation to lawguru customers by the end of which an entity type and state of formation will be decided together with a road-map of what else needs to be done. Contact me directly

Roman R. Fichman, Esq.

www.TheLegalists.com │ @TheLegalist

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There is no out of the box answer for this. In most cases, a new pre-money entity will form as an LLC. Then later it can be converted to a C-Corp as needed. It is unlikely that an S-Corp would be practical for this, but that can be explored as well if it makes sense tax-wise.

I suggest that you consult with a lawyer in private and discuss your objectives in more detail. You can start by calling around to several for a free phone consultation, get some insights then pick the best fit to work with.

If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.

Our firm is now referred by the American Bar Association (see under the New York section):

http://www.americanbar.org/groups/delivery_legal_services/resources/programs_to_help_those_with_moderate_income.html

Kind regards,

Frank

www.LanternLegal.com

866-871-8655

[email protected]

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.