The "Purpose" for Forming LLCs was Expanded by New Jersey's Revised Uniform Limited Liability Company Act

no picture
Currently, the New Jersey Limited Liability Company Act allows LLCs to “carry on any lawful business, purpose or activity.”  N.J.S.A. 42:2B-8.   Sadly, the current law does not allow an LLC to be used for “non-profit” use such as a charity or placing a family vacation home into an LLC.  A small, but important change promulgated by the enactment of the New Jersey Revised Uniform Act is the change in that language. The Revised Act allows LLCs to be used for “any lawful purpose, regardless of whether for profit.”  Hence, non-profits may use an LLC after March 18, 2013.  Moreover, families could form an LLC and place their vacation home into that corporate structure even though the use of that home was not for profit. 
Scott Unger is a Shareholder in Stark & Stark's Lawrenceville, New Jersey office concentrating in Shareholder & Partner Dispute Litigation. For questions, or additional information, please contact Mr. Unger.
Trackbacks (0) Links to blogs that reference this article Trackback URL
Comments (0) Read through and enter the discussion with the form at the end
Post A Comment / Question Use this form to add a comment to this entry.

Remember personal info?
Send To A Friend Use this form to send this entry to a friend via email.