What are the filing requirements for NJ member of a Delaware LLC?:
I am NJ resident starting a new consulting business with 4 other partners from different states (2 in NY and 2 others in CA). We have registered the main business entity as a Delaware LLC. I also registered a single-member Delaware LLC to be the member in the consulting business LLC. No income will come from NJ sources. In this scenario, do I file a Schedule C for federal tax filing to show my K-1 income from the consulting business LLC, as well as any expenses associated with the business at my single-member LLC? Also, do I have to file my single-member LLC in NJ (as a foreign entity or for authority to conduct business)?
I will definitely retain help from a tax attorney, but would like some educational information beforehand so I have a working understanding.
Martin’s answer: Good luck with the business venture. Make sure the new consulting business Delaware LLC implements and executes an Operating Agreement between the 4 members. Extremely important. As to a single member LLC, under Federal tax law, this type of entity is referred to as a "disregarded entity." That means that the taxpayer (you) files a Schedule C for the single member LLC with your personal income tax return. So, whatever you file for the Federal, you will file for the State of NJ, as a resident. Remember, you are a resident of NJ and therefore, you file a Resident NJ1040. The K-1 that is issued to you is reported on your personal Federal income tax return. If it is a loss, NJ will not recognize it if it is the only loss. Please note that NJ is a Gross Income State, that is, it does not recognize stand-alone losses. And finally, whether you have to register the single member LLLC in NJ as a foreign entity will depend on whether any busness is conducted by it in NJ.
Joining a new business:
I am planning to join as a co-owner of a small business(S Corp). My friend was running this business for past 2 years. I am looking for an attorney's for this. What all documents are needed for this?
After he adds me to the company, is there any way I can verify that I am in registered owner's list?
Martin’s answer: Any time you enter into a business, especially as a shareholder of an ongoing business conducted as a corporation (which has a Federal S-Corp election) such as the one you describe, you must insist on the preparation and execution of a Shareholders' Agreement which provides for voting rights, especially as it relates to the S-Corp election, death, disability, divorce, retirement, buyout, etc. This is a crucial document for any shareholder. Further, you should have a document which evidences the purchase or subscription to shares of the corporation as well as the actual issuance of stock certificates.
Estate administrator is allowed to open safe deposit box in bank. IN supervision of bank manger.OR HE IS FREELY ALLOWED TO LOOK: my brother died and i am surrogate court administrator.am i allowed to see and to take care of things including WILL if it is there.according to bank in NJ.says there should be bank manger and state official has to be present. please guide me.
Martin’s answer: If there was a will in existence and you admitted it to probate thereby being appointed executor by the Surrogate Court, you are entitled access to the safe deposit box without any bank official or NJ Division of Taxation official present. The rules sealing a safe deposit box after death and having it opened in the presence of a bank and/or tax official were repealed decades ago. If you have not yet been appointed, you are still permitted limited access to the safe deposit box in order to gain access for obtaining the will and/or other documents you might need for administration of the estate or to obtain beneficiary death benefits, such as life insurance.