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The following are just a few of the relationships that businesses need to manage: Landlord – tenant Lender – borrower Equipment lessor – lessee Creditor – debtor – guarantor Vendor/service provider – customer Corporation (or LLC) – shareholder (or member) Customer – general contractor – subcontractor In each relationship, even a temporary delay in payment or performance could breach a contract and destroy a relationship.  While the judiciary system has limited physical access to their

In New Jersey, your power as a shareholder to control the governance of a corporation is based on your voting rights, which can be determined by reviewing the incorporation documents (namely, your certificate of incorporation and the by-laws). Because New Jersey allows corporations to customize the relative rights, preferences and limitations of the shares of each class of stock issued by a corporation, just because you own 50% of the stock of a company does

There are many factors that you must consider before attempting to sell your minority interest in a New Jersey LLC.  First, you must determine whether the operating agreement places any limitations on your ability to transfer your interest. The operating agreement is the agreement between the members that addresses, among other things, the relations among the members.  Commonly, an operating agreement will contain a section that addresses whether the members may sell their interest to

The short answer is that New Jersey law does not require you to have an operating agreement to form an LLC, but you should have one anyway (and it should be in writing).  New Jersey LLCs are governed by the Revised Uniform Limited Liability Company Act (N.J.S.A. 42:2C-1, et seq.).  If you do not have a written operating agreement, one may be “implied” based on oral communications between the members and/or the course of conduct. 

The specific laws that govern your business dispute depend on the type of business (namely, whether the business is a partnership, a limited liability company, or a corporation) and the nature of the dispute. In New Jersey, partnerships are governed by the New Jersey Uniform Partnership Act (N.J.S.A. 42:1A-1, et seq.); limited liability companies are governed by the New Jersey Revised Uniform Limited Liability Company Act (N.J.S.A. 42:2C-1, et seq.); and corporations are governed by