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Keep Your Companies Separate!

Are your companies too close for comfort? A recent New Jersey case illustrates the principle that New Jersey courts may have jurisdiction over business entities if they "lead a double life" in New Jersey. Consider the following... The Case The facts of the underlying case are simple...

A partnership with one partner?

The Case of the Departing Penultimate Partner Can one hand clap? There are many disadvantages associated with structuring a business as a general partnership. One disadvantage is that, unlike limited liability companies and corporations, the departure of one of the remaining two owners will, in all...

Should I transfer my home to an LLC?

I am often asked whether to transfer residential property into a limited liability company (LLC). Consider the following... Why transfer residential property to an LLC? It is not uncommon for an individual or a group of individuals to derive rental income from residential property such as...

Why do so many (large) companies choose to incorporate in Delaware?

Many are surprised to learn that the chief reasons are unrelated to taxation. In fact, they are... 1. The Statute. The Delaware General Corporation Law is regarded as relatively flexible, which allows great ability to structure the relationship between a corporation's shareholders (i.e., owners), directors (i.e.,...

Changing Your Company’s Structure

Very often, liability can be reduced or the financial and operational goals of business owners can be better achieved by changing a company’s legal structure, e.g., general partnership (GP) to limited liability partnership (LLP), for-profit corporation to non-profit corporation, corporation to limited liability company...

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