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New Jersey Business Law Questions & Answers
3 Answers | Asked in Bankruptcy, Banking, Business Law and Collections for New Jersey on
Q: Am I personally liable for an EIDL loan of $130k taken out by my S Corp if I close the business?

I have a small business set up as an S Corp in NJ. Took out a $130k EIDL loan as well as a $30k loan from my bank. Business is dying. Will the SBA be able to go after my personal assets if I close the business? No personal guarantee, only against collateral/inventory which is hard to sell right... View More

Michael David Siegel
Michael David Siegel
answered on Jan 26, 2024

This is actually an evolving area of the law. If you have no guarantee, the answer should be no. But, the SBA has been investigating whether proceeds were properly used. If you took the money for improper purposes, the US Attorney could come after you. But, there are so many of these loans, it... View More

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3 Answers | Asked in Bankruptcy, Banking, Business Law and Collections for New Jersey on
Q: Am I personally liable for an EIDL loan of $130k taken out by my S Corp if I close the business?

I have a small business set up as an S Corp in NJ. Took out a $130k EIDL loan as well as a $30k loan from my bank. Business is dying. Will the SBA be able to go after my personal assets if I close the business? No personal guarantee, only against collateral/inventory which is hard to sell right... View More

James L. Arrasmith
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answered on Jan 26, 2024

In New Jersey, as with other states, the structure of an S Corporation typically provides a degree of separation between the business's debts and your personal assets. This means that in many cases, shareholders are not personally liable for the debts of the corporation.

Since you...
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3 Answers | Asked in Bankruptcy, Banking, Business Law and Collections for New Jersey on
Q: Am I personally liable for an EIDL loan of $130k taken out by my S Corp if I close the business?

I have a small business set up as an S Corp in NJ. Took out a $130k EIDL loan as well as a $30k loan from my bank. Business is dying. Will the SBA be able to go after my personal assets if I close the business? No personal guarantee, only against collateral/inventory which is hard to sell right... View More

Leonard R. Boyer
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answered on Jan 26, 2024

If your business closes next week, you're personally liable for the debt. EIDLs are not forgivable. You'll repay them over the 30-year term, though you can pay your loan off early with no prepayment penalties. Also, for future reference, a Sub-Chapter S corp is your worst nightmare and... View More

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1 Answer | Asked in Banking, International Law, Internet Law and Business Law for New Jersey on
Q: Hi,Selling gift cards on paxful.com for bitcoin, is it against any law?

I sell electronics. one of my customers wants to pay by giving me visa gift cards. I want to get the money off the gift cards. (my credit card processor doesn't let me swipe it on my credit card machine). can i buy on paxful.com BTC with the visa gift cards and then sell the BTC on... View More

James L. Arrasmith
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answered on Nov 13, 2023

Trading Visa gift cards for Bitcoin on platforms like Paxful.com and then selling Bitcoin for cash on Coinbase.com is not inherently illegal. However, it's important to be aware of and comply with the terms of service of both platforms. Also, be mindful of federal and state regulations... View More

2 Answers | Asked in Bankruptcy, Foreclosure, Real Estate Law and Business Law for New Jersey on
Q: Hello, I have 2 suites with levelset against the same person/ company in stage 3 deadline 1 yesterday 1 today HELP

i am lost the one yesterday i did mandoroty arbitration if you could please spare me a phone call I am a small one man copration with 1 employee and on the verge of bankruptsy there is 38,000.00 owed to me. i went after tthe customers homes with the leans she refused to sign for the cert mail. and... View More

Leonard R. Boyer
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answered on Nov 9, 2023

You are going to need to retain an experienced civil litigation attorney. You are a corporate entity so you must retain counsel. In determining your choice of an attorney, there are many factors to consider, including but not limited to and you should look at how the attorney is you should also... View More

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2 Answers | Asked in Bankruptcy, Foreclosure, Real Estate Law and Business Law for New Jersey on
Q: Hello, I have 2 suites with levelset against the same person/ company in stage 3 deadline 1 yesterday 1 today HELP

i am lost the one yesterday i did mandoroty arbitration if you could please spare me a phone call I am a small one man copration with 1 employee and on the verge of bankruptsy there is 38,000.00 owed to me. i went after tthe customers homes with the leans she refused to sign for the cert mail. and... View More

James L. Arrasmith
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answered on Nov 10, 2023

In New Jersey, if you're dealing with multiple legal issues involving debt collection, foreclosure, and potential bankruptcy, it's important to seek legal advice promptly. Since you've already gone through mandatory arbitration and are considering placing liens against property, a... View More

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1 Answer | Asked in Business Law for New Jersey on
Q: I have an ATM Business based out of New York. My LLC was opened in New York. Can I place machines in New Jersey?

Can I place my ATM Machines in New Jersey or do I need an LLC for Jersey as well?

T. Augustus Claus
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answered on Sep 22, 2023

In general, an LLC formed in New York can conduct business in New Jersey, but you would likely need to register your New York LLC as a "foreign LLC" in New Jersey to do so. This usually involves filing specific paperwork with the New Jersey Division of Revenue and Enterprise Services,... View More

1 Answer | Asked in Business Law and Banking for New Jersey on
Q: LLP took out SBA EIDL loan. Loan docs mention personal liability. One partner leaving does this effect buyout.

Partner buying out leaving partner wants to reduce buyout amount by leaving partners % of sba loan liability. Is this right? Nothing in partnership agreement and buyout terms mentions liabilities.

T. Augustus Claus
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answered on Sep 15, 2023

When a partner leaves an LLP that has taken out an SBA EIDL loan, the implications for the remaining partners can be influenced by several factors, including the terms of the partnership agreement and the loan documents. If the partnership agreement does not explicitly address the allocation of SBA... View More

3 Answers | Asked in Employment Law and Business Law for New Jersey on
Q: Hi, I have been audited by the NJ Dep. of Labor and they have concluded sub-contractor does not meet the requirements

NJ State auditor concluded:

Individuals do not meet the requirements of Section 19(I) (6) (A) (B) (C).

As such payments to such individuals are determined to be taxable for New Jersey UI/DI/FLI taxes.

My Sub-contractor is an employee of your business entity. He must be on... View More

John Michael Frick
John Michael Frick
answered on Sep 14, 2023

Under New Jersey law, a worker is considered an employee unless an employer can satisfy all three of these criteria:

1. Such individual has been and will continue to be free from control or direction over the performance of such service, both under his contract of service and in fact;...
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3 Answers | Asked in Employment Law and Business Law for New Jersey on
Q: Hi, I have been audited by the NJ Dep. of Labor and they have concluded sub-contractor does not meet the requirements

NJ State auditor concluded:

Individuals do not meet the requirements of Section 19(I) (6) (A) (B) (C).

As such payments to such individuals are determined to be taxable for New Jersey UI/DI/FLI taxes.

My Sub-contractor is an employee of your business entity. He must be on... View More

Lisa I. Fried-Grodin
Lisa I. Fried-Grodin
answered on Sep 14, 2023

It sounds like the NJDOL determined that there was insufficient proof that the subcontractor was an independent business under the ABC test. This case will give you a good understanding of the legal issues https://www.njcourts.gov/system/files/court-opinions/2022/a_7_21.pdf

It may be...
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1 Answer | Asked in Contracts and Business Law for New Jersey on
Q: 53 FT Dry Van Trailer Leasing Company Threatning Me

I have 53 ft semi dry van trailer i already paid more than $42k including down payment on this trailer because of business down fall i can't keep up with payments any more because of too high payment which is $1650 per month as per signed lease now leasing company is sending me threatning text... View More

Leonard R. Boyer
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answered on Jul 17, 2023

Clearly, this leasing company is in violation of the Federal Fair Debt Collection Practices Act and is engaging in harassment tactics. Personally, I would file a lawsuit against them and seek damages plus attempt to get a restraining order against them. Then I would have the leverage to negotiate a... View More

2 Answers | Asked in Business Law, Tax Law, Estate Planning and Probate for New Jersey on
Q: If a business owner passes away and was married at the time who does the business go to if the is no will ?
Cesar Mejia Duenas
Cesar Mejia Duenas
answered on Jun 1, 2023

There are two set of rules here. First, the rules of the business entity (operating agreement, bylaws, partnership agreement, etc.), and the Florida Laws. The interest in the business entity sometimes has a transfer on-death provision. If the interest in the business passes to a certain beneficiary... View More

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2 Answers | Asked in Contracts and Business Law for New Jersey on
Q: I'm not a lawyer I want to do a contract with an licensed New Jersey attorney to provide services to other, is it legal

Own a LLC in New Jersey that provides legal services, I am not an attorney so I want to contract out to a licenses New Jersey Attorney, but I am trying to figure if that is legal in this state.

W. J. Winterstein Jr.
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W. J. Winterstein Jr.
answered on Apr 4, 2023

A noted US entrepreneur once said that the secret to getting rich is to "find a need and fill it".

All lawyers want and seek more business, so you've found a need.

Fill it? In every bankruptcy case, the attorney for the debtor must sign and file a statement that he...
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2 Answers | Asked in Copyright, Business Law, Intellectual Property and Trademark for New Jersey on
Q: If my dogs name is Tater, can I bake a chicken and cheese treat named Tater’s Tots?
Leonard R. Boyer
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answered on Mar 25, 2023

NO you cannot do so. The name "Tater Tot" is a registered trademark of Ore-Ida. You would end up paying a significant sum of money since you would be infringement of their trademark. What you need to do is develop a business plan and a different name for your product that is catchy.... View More

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2 Answers | Asked in Business Law and Contracts for New Jersey on
Q: Non Disclosure Agreements The accountant of 2 individuals interested in buying my business requested my financials.

Do I ask the accountant to sign the NDA also or just the potential buyers?

Thank you.

Jacob Rheaume
Jacob Rheaume
answered on Mar 9, 2023

First off, congratulations on the interest in your business.

It will depend on how the NDA is drafted. Typically, an NDA will contain language such as:

"The Receiving Party, including its agents, employees, representatives, members (collectively, the "Receiving...
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2 Answers | Asked in Business Law and Contracts for New Jersey on
Q: Non Disclosure Agreements The accountant of 2 individuals interested in buying my business requested my financials.

Do I ask the accountant to sign the NDA also or just the potential buyers?

Thank you.

Leonard R. Boyer
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answered on Mar 9, 2023

What you really need to do is have a non-disclosure, non-compete and non-circumvent agreement signed by anyone and you should not do any of this without an attorney. With modern technology, you can be represented by any high-quality attorney in New Jersey irrespective of geography. Pick the best... View More

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3 Answers | Asked in Contracts and Business Law for New Jersey on
Q: Agreement with client to pay for service provided in 30 days. Payment not yet received.

Payment is referral fee for candidate. Guarantee period is also over. Candidate and client agreed on remote, relocation plan. But now client is holding our payment as candidate has not yet relocated.

There is written agreement between both parties. Agreement states that it will govern and... View More

Leonard R. Boyer
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answered on Jan 22, 2023

This is not something that can be answered without a document review. That is also the same reason a price for what it will cost cannot be provided. However, this will probably exceed the time and work that most attorneys will offer in a free consultation. So you should expect to pay for about an... View More

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3 Answers | Asked in Contracts and Business Law for New Jersey on
Q: Agreement with client to pay for service provided in 30 days. Payment not yet received.

Payment is referral fee for candidate. Guarantee period is also over. Candidate and client agreed on remote, relocation plan. But now client is holding our payment as candidate has not yet relocated.

There is written agreement between both parties. Agreement states that it will govern and... View More

Morris Leo Greb
Morris Leo Greb
answered on Jan 22, 2023

While your query indicates that the parties agreed that NJ law controls, the narrative does not indicate that venue is NJ nor does it state whether any disagreement is to be submitted to arbitration. Based on the limited information given, your claim has ripened and a complaint can be filed.

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1 Answer | Asked in Contracts and Business Law for New Jersey on
Q: Agreement with client to pay for service provided in 30 days. Payment not yet received.

Payment is referral fee for candidate. Guarantee period is also over. Candidate and client agreed on remote, relocation plan. But now client is holding our payment as candidate has not yet relocated.

There is written agreement between both parties. Agreement states that it will governed and... View More

Morris Leo Greb
Morris Leo Greb
answered on Jan 20, 2023

The question as posed omits much important information. This includes whether or not there was a written agreement, whether or not one party is a licensed professional, whether or not the agreement was negotiated in NJ, and other issues that may become relevant.

2 Answers | Asked in Business Law and Contracts for New Jersey on
Q: Can a client tell you not to do work after he signed a contract?
Morris Leo Greb
Morris Leo Greb
answered on Jan 11, 2023

Yes, provided there is no noncancellation clause in the contract. However, the client will be responsible to pay for work done to date you received the cancellation notice which should be in writing . Additionally the client shall be responsible for reimbursement for actual expenses incurred.

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