By Fredrick P. Niemann, Esq. of Hanlon Niemann, a Mercer County NJ Corporation Attorney
A corporation under NJ law is a distinct legal entity that can own property, borrow money, pay taxes, hire employees, operate a business, sue or be sued. By law it is the shareholders who are the owners of the corporation. Corporate profits are distributed through the payment of dividends and share price appreciation. Shareholders are not personally liable for the actions of the corporation.
The most significant benefit of incorporation in the state is the limited liability available to its shareholders. Under NJ law, a corporation is considered to be a separate legal entity from the shareholders who own it. This means that the individual shareholders of the corporation are not personally liable for the debts and obligations of the corporation, as a general rule. If a corporation goes out of business, then the shareholders will lose their investment, that’s it.
Contact me personally today to discuss your New Jersey Corporation. I am easy to talk to, very approachable and can offer you practical, legal ways to handle your concerns. You can reach me toll free at (855) 376-5291 or e-mail me at fniemann@hnlawfirm.com/.