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Rachel Lilienthal Stark is a member of the Banking & Financial Services, Business & Corporate, Intellectual Property and Non-Profit Organization Groups. Ms. Stark concentrates her practice in the representation of start-up and emerging companies and non-profit organizations on a variety of issues including corporate formation, financing, franchising, licensing, acquisitions, executive compensation, equity compensation plans, employment agreements, real estate and intellectual property law. Ms. Stark also represents lenders in commercial loan transactions.

The New Jersey Economic Development Authority (NJEDA) has approved a series of aid packages for small/mid-size businesses in the amount of $75 million, which could grow to $100 million depending on matching grants.

The NJEDA programs focus on businesses that have been hit the hardest by COVID-19. The initiatives include a grant program for small businesses, a zero-interest loan program for mid-size companies, support for private-sector lenders and a variety of resources providing technical support.

The NJEDA hopes the initiatives will provide relief to 3,000 and 5,000 small and mid-size businesses in the State. Some of these NJEDA programs will begin accepting applications as early as March 30th. Below you will find each of the NJEDA’s programs, a summary of each program and eligibility requirements.


Continue Reading New Jersey Small Business Economic Development Authority – Small Business Assistance re: COVID-19

As of Friday March 27th, the US Congress has voted to advance the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), that will create an estimated $2 trillion emergency relief package to aid millions of individuals, the public health sector, hard-hit industries, and small businesses effected by COVID-19.

The CARES Act will allocate $350 billion to provide relief to certain businesses through 100% guaranteed Small Business Administration (SBA) loans, a portion of which the SBA would forgive based on the employer meeting certain criteria.

Below you will find a summary of provisions in the proposed legislation applicable to businesses.


Continue Reading What to Know About the CARES Act

With the assistance of my fellow Stark & Stark Shareholders Daniel J. Sheridan and Henry E. Van Blunk, I have co-authored an important client alert about a law deadline that could impact all limited liability companies in the state of New Jersey. The article discusses the New Jersey Revised Uniform Limited Liability Company Act (RULLCA), which significantly changes many of the legal principles underlying the organization, governance and operation of limited liability companies. While, until now, existing LLC’s were not impacted by this new law, the grace period expires on March 1, 2014 and the new act will apply to all existing New Jersey limited liability companies.
Continue Reading Deadline Could Impact All New Jersey Limited Liability Companies

Many businesses, especially start-ups, find that it makes sense to engage freelance consultants for particular tasks rather than adding employees to their payroll.  There are many financial and strategic reasons for a company to engage a consultant for certain projects, such as flexibility, expertise, and efficiency.  However, it is important that companies identify which types

The Revised Uniform Limited Liability Company Act (the “New Jersey Revised Uniform LLC Act”), was enacted into law on September 19, 2012 and went into effect on March 18, 2013. It applies to LLC’s formed on or after March 18, 2013 and LLC’s formed prior to March 18, 2013 which elected to be subject to the New Jersey Revised Uniform Act. It will apply to all New Jersey LLC’s beginning on April 1, 2014.
Continue Reading Statements of Authority in the New Jersey Revised Uniform Limited Liability Company Act

The Revised Uniform Limited Liability Company Act (the “New Jersey Revised Uniform LLC Act”), was enacted into law on September 19, 2012. It will go into effect 180 days after enactment, which is March 18, 2013, and will apply to LLC’s formed on or after March 18, 2013 and LLC’s formed prior to March 18, 2013 which elect to be subject to the New Jersey Revised Uniform Act. It will apply to all New Jersey LLC’s beginning on April 1, 2014.
Continue Reading Modernizing the New Jersey Limited Liability Company Act

In Cain v. Merck & Co. Inc., the New Jersey appellate division recently ruled that the New Jersey Business Corporation Act (N.J.S.A 14A:5-28(4)) allows shareholders with a proper purpose to inspect the minutes of the board of directors and executive committee of the corporation.
Continue Reading Corporations Beware: Board of Directors’ Minutes are Subject to Shareholder Review

As more and more business owners are forming limited liability companies (“LLC’s”) to operate their businesses, familiarity with the statute that governs limited liability companies (which in New Jersey is the New Jersey Limited Liability Company Act (the “LLC Act”)) is important. Most provisions of the LLC Act can be preempted by the LLC’s Operating Agreement, which is the agreement among the members of the LLC that governs its conduct and affairs. If the LLC’s Operating Agreement does not address a particular issue, the LLC Act governs.
Continue Reading The Right to Resign under the New Jersey Limited Liability Company Act

In a limited liability company (LLC), if no operating agreement (the agreement between the members of the LLC) is in place, the limited liability company statute of the state where the LLC was formed controls the relationship between the members of the Company.
Continue Reading What To Include In Your Limited Liability Company’s Operating Agreement