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New Jersey Business Law Questions & Answers
3 Answers | Asked in Bankruptcy, Business Law and Contracts for New Jersey on
Q: Can I request removal and reimbursement for a delayed solar panel project?

I started a solar panel project almost two years ago, and the system was supposed to be operational by January 2024. However, the original company filed for bankruptcy, and my project stopped. A new company took over and began working to complete it, but they have not yet finalized the necessary... View More

Leonard R. Boyer
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answered on Apr 24, 2025

You need to retain an experienced civil litigation attorney. I have successfully handled a significant number of these cases. The typical situation is that one company sells the solar panels and a different company installs them. Realistically the average Defendant Solar panel company that sells... View More

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3 Answers | Asked in Business Law, Contracts, International Law and Employment Law for New Jersey on
Q: Lawsuit against me and LLC in NJ over alleged competition while employed abroad. Impact of non-compete?

I have received a lawsuit against me and my partnership LLC in New Jersey. The lawsuit involves my previous employment with a company registered in New Jersey, while I was physically working in a subsidiary in a foreign country. The accusations are related to damage to business and engaging in a... View More

H. Scott Aalsberg
H. Scott Aalsberg
answered on Apr 1, 2025

A lawyer would need to review the documents before giving you an specific answer, that being said the terms of service here don't allow us anyway to give specific legal advise to your situation. What I will say is if you are in violation of an agreement that you are a party to, the other party... View More

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3 Answers | Asked in Business Law and Real Estate Law for New Jersey on
Q: Can I pay a referral fee to a non-licensed person in NJ real estate?

I am a licensed commercial real estate salesperson in New Jersey. A business acquaintance, who is not a licensed real estate professional, has offered to refer real estate clients to me in exchange for a finder's fee, potentially around 5% of the transaction value. I am unsure about the... View More

Samuil Buschkin
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answered on Mar 26, 2025

In New Jersey, a licensed real estate salesperson cannot legally pay a referral or finder’s fee to an unlicensed individual for referring real estate clients. The New Jersey Real Estate Commission strictly prohibits compensating individuals who are not licensed under the New Jersey Real Estate... View More

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2 Answers | Asked in Agricultural Law, Divorce and Business Law for New Jersey on
Q: Is my spouse entitled to my inherited farm in NJ after 43 years of marriage?

I inherited a farm from my grandmother about 50 years ago, and the farm is solely in my name. I have been married to my spouse for 43 years, and we live on the property together. Occasionally, we rent out one of the two houses on the property. There have been no loans or prenuptial agreements... View More

Richard Diamond
Richard Diamond
answered on Mar 7, 2025

While statutorily an inheritance is not subject to division in a divorce, there are a million exceptions to that can apply and this is where you need to sit down with an experienced family law attorney to examine the history of this property, any improvements, pay down of any mortgage obligations,... View More

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2 Answers | Asked in Agricultural Law, Divorce and Business Law for New Jersey on
Q: Is my spouse entitled to my inherited farm in NJ after 43 years of marriage?

I inherited a farm from my grandmother about 50 years ago, and the farm is solely in my name. I have been married to my spouse for 43 years, and we live on the property together. Occasionally, we rent out one of the two houses on the property. There have been no loans or prenuptial agreements... View More

H. Scott Aalsberg
H. Scott Aalsberg
answered on Mar 7, 2025

A lot depends on how long you have had it and whether you used marital assets to sustain the property or used estate assets. A judge will also look at the fact that the spouse did live on the property. I suggest you setup an in person consultation with a lawyer to determine what is most likely to... View More

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1 Answer | Asked in Business Law for New Jersey on
Q: Dears , i have a business matter related with an unpaied invoice for 18k on a NJ company , can anybody help me ?

I do have a regular signed and honoured contract , company is solvable they just dont pay me.

Leonard R. Boyer
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answered on Jan 22, 2025

An experienced litigation attorney can write a strongly worded letter which may resolve the problem. In that letter, (which is something I have done frequently) I would also seek attorney fees. Expect to pay for 1/2 hour of attorney time for a review of all documents. The letter may be sufficient... View More

2 Answers | Asked in Business Formation and Business Law for New Jersey on
Q: I am rebranding my company and I am deciding between making a new LLC or amending the current one.

I am making a new vision for the company and changing the name and target market. The last LLC is a dead company, I am 80% owner of the older company. I want to make a brand-new LLC and start over with my own brand as 100% owner. Is there any complications or tax issues/sales tax/income tax or... View More

Samuil Buschkin
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answered on Jan 8, 2025

For your situation, when creating a new LLC and transitioning from an older company, there are a few considerations to keep in mind:

If the older LLC has any existing debts, obligations, or contracts, it’s important to ensure those are properly addressed so they don’t carry over to the...
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2 Answers | Asked in Business Formation and Business Law for New Jersey on
Q: I am rebranding my company and I am deciding between making a new LLC or amending the current one.

I am making a new vision for the company and changing the name and target market. The last LLC is a dead company, I am 80% owner of the older company. I want to make a brand-new LLC and start over with my own brand as 100% owner. Is there any complications or tax issues/sales tax/income tax or... View More

Liscah Isaboke
Liscah Isaboke
answered on Jan 9, 2025

Forming a new LLC for your rebrand is a great way to start fresh as a 100% owner, free from any liabilities, debts, or obligations tied to the old company. This approach ensures your new brand aligns with your vision and target market without being influenced by the history of the prior LLC.... View More

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1 Answer | Asked in Business Law and Patents (Intellectual Property) for New Jersey on
Q: A Federal Judge issued an injunction against one small company because it violated trade secrets of another. No patents?

The company in violation is selling non-FDA approved products. How can products be infringed upon based on "trade secrets" when their products don't have to adhere to a determined fixed standard?

For instance, in patented research, FDA-approved drugs are only successfully... View More

James L. Arrasmith
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answered on Jun 22, 2024

To understand this situation, we need to separate a few key concepts:

1. Trade secrets vs. Patents

2. FDA approval

3. Intellectual property infringement

Let's break these down:

1. Trade secrets vs. Patents:

Trade secrets and patents are two...
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1 Answer | Asked in Consumer Law, Criminal Law, Business Law and Civil Rights for New Jersey on
Q: In NJ, is it legal for hotel security to go through a guest luggage/baggage after being locked out?

AC,NJ hotel and casino guest luggage in room after guest was locked out of room for trying to extend stay and payment was declined. The guest was not allowed to get belongings out of room, instead security went to room, opened guest personal belongings and proceeded to go through their... View More

James L. Arrasmith
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answered on May 27, 2024

In New Jersey, hotel staff and security are generally not allowed to search a guest's personal belongings without consent, even if the guest has been locked out of their room due to non-payment or other issues. The hotel may have the right to remove and store the guest's belongings, but... View More

3 Answers | Asked in Business Law, Libel & Slander and Intellectual Property for New Jersey on
Q: Need help with defamation against a small startup business. We are being wrongfully accused of copying their ideas

Need a cease and desist letter and a strong statement indicating that we will sue for damages, loss revenues and emotional and physical distress. An immediate public apology is necessary but she’s gone too far and my losses are palpable.

Leonard R. Boyer
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answered on May 1, 2024

Sometimes a strongly worded letter from an experienced civil litigation attorney is enough to solve the problem. Whether or not you can file a lawsuit for emotional distress is questionable. If the letter does not help, then a lawsuit for copyright infringement will get their attention. You should... View More

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3 Answers | Asked in Business Law, Libel & Slander and Intellectual Property for New Jersey on
Q: Need help with defamation against a small startup business. We are being wrongfully accused of copying their ideas

Need a cease and desist letter and a strong statement indicating that we will sue for damages, loss revenues and emotional and physical distress. An immediate public apology is necessary but she’s gone too far and my losses are palpable.

James L. Arrasmith
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answered on May 19, 2024

I understand you feel wronged, but I have some concerns about the approach you're proposing. Here are a few important points to consider:

Sending a cease and desist letter with threats of a lawsuit is a very serious step that could escalate the conflict. It's usually advisable to...
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1 Answer | Asked in Business Law for New Jersey on
Q: I have decided to dissolve my partnership in LLC with 50/50 partner in NJ. What do i need to do to do?

I am in a LLC 50/50 partnership. I would like to give my 50% to my partner as I no longer want to be part of our business. We have an operating agreement and have agreed that I will be leaving. I need to know what steps to take to make sure I am completely out of the business.

Leonard R. Boyer
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answered on Mar 21, 2024

Without reading the operating agreement and reviewing all relevant corporate documents, it is impossible to provide a meaningful answer. You should expect to pay for 1/2 to 1 hour of attorney time to review all the documents and advise you on the best way to proceed. Pick the best attorney you can... View More

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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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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1 Answer | Asked in Business Formation, Business Law, Tax Law and Real Estate Law for New Jersey on
Q: Is forming an NJ LLC and foreign LLCs in PA and NY sound for liability and tax compliance?

I run a small short-term rental co-hosting/property management business in New Jersey. I manage properties remotely in Pennsylvania and New York, charging a commission based on the nightly rental rate. I am considering forming a New Jersey LLC for liability protection, and registering it as a... View More

James L. Arrasmith
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answered on Jun 12, 2025

Your proposed structure is legally sound and actually represents best practice for operating across state lines. By forming a New Jersey LLC and registering it as a foreign LLC in Pennsylvania and New York, you'll properly establish your legal right to do business in those states while... View More

2 Answers | Asked in Contracts and Business Law for New Jersey on
Q: Loan breach by Delaware business, NY jurisdiction in contract.

I am in New Jersey and loaned a business incorporated in Delaware $50,000, documented in a contract stating that New York law has jurisdiction. The loan was short-term for 90 days with a 10% origination fee, and payment was due at the end of the term. The contract also includes a 1% penalty for... View More

Leonard R. Boyer
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answered on Jun 11, 2025

I do not understand why if you are in NJ and this person, whom you loaned the money to, put that the contract is subject to New York law. But neither of you have any connection with NY, so I recommend that you have an experienced NJ attorney review the contract (which can be done either in person... View More

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2 Answers | Asked in Business Law, Contracts, Civil Litigation, Family Law, Car Accidents and Personal Injury for New Jersey on
Q: How can we legitimately transfer co-owned properties amid a pending lawsuit in NJ?

My partner and I, who are not legally married, have decided to separate. We co-own two properties and have three children together. He plans to transfer full title of both properties to me, and I will take full responsibility for the children and properties. However, he is a named defendant in a... View More

Leonard R. Boyer
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answered on May 25, 2025

You cannot just transfer your your assets to another person to avoid creditors. That will be considered FRAUD. You do not want any part of this. Your soon to be formed partner needs to at least consult an experienced Bankruptcy attorney and see if it is right for him. Pick the best attorney you can... View More

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1 Answer | Asked in Divorce, Domestic Violence, Contracts, Business Law, Civil Litigation and Family Law for New Jersey on
Q: Can I annul my marriage due to husband's fraud in NJ?

I recently discovered that my husband lied on our marriage certificate, stating he had only been married once before. During our divorce proceedings, I learned he was still married to another woman while engaged to me for five years, only filing for divorce four months before our wedding in... View More

James L. Arrasmith
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answered on May 15, 2025

I'm truly sorry you're facing this situation. Discovering that your husband misrepresented something as serious as his marital status is deeply painful—and you're right to question whether that changes the legal standing of your marriage. You're not alone in this, and it’s... View More

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