How to start a family business – advice from commercial law specialists

Starting a family business is an exciting venture and because the risks are so much closer to home it’s more important than ever your business starts out on the right foot. For experienced business and commercial law attorneys in New Jersey, this means two things – compliance and sound legal foundations. These two pillars are pivotal to protecting your business during the vulnerable formation stage as well as protecting it’s future.

Develop sound legal foundations for your business

Firstly, it is necessary to decide on the legal structure your business will take, namely Sole Proprietorship, General Partnership, Limited Liability Company or Limited Liability Partnership. Each of these structures offers owners, directors and managers different levels of protection and risk, as well as having an impact on how the business itself is run. Sole Proprietorships dictate that a single person owns and operates the business, carrying all the risk as well as the responsibility for debts. LLCs are more flexible and have more elements of a corporation in terms of limiting the liability of the owners, whilst an LLP limits the liability of some or all or partners to protect each from the misconduct of the others.

Making your business compliant with State boards and licensing regulations

Depending on the industry your business will enter, each business has different licensing requirements, operational requirements and local permit requirements which need to be met in order to operate legally in the state. For example, home improvement contractors must be registered with the New Jersey Division of Consumer Affairs, whilst childcare centers are required to be licensed by the Department of Children and Families if serving six or more children.

In addition, it is necessary to register your business for tax purposes and register each employee though Unemployment and Disability Insurance and Workers’ Compensation. Your legal team will be able to undertake these requirements themselves and advise you on how to stay compliant while utilizing all of the opportunities and incentives the state and federal government may be able to apply to your business.

Other services your lawyers can provide include managing your insurance coverage, assisting with commercial transactions and contracts as well as negotiations. They will also be on hand to manage any legal issues your business may face and – having knowledge of your business since it was founded – insure all necessary paperwork and documentation that may be needed is recorded, kept secure and able to be made available if needed.

At Sedita, Campisano & Campisano, LLC, we understand family businesses are about more than profit – they’re about creating a legacy. To find out more about how our business attorneys can assist you with your new venture in New Jersey, contact us today.

Recent Posts



Call Now