Should I create an LLC or an S-Corp in NJ?

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Should I create an LLC or an S-Corp in NJ?

I’d like to start my own Production company with a friend of mine in the state of NJ. It would be just the 2 of us in the business and we would be 50/50 partners.We have an animated web series already created which is under our production company name and we plan on making many more. We hope to make an income at some point, whether it be selling tshirts, having ads on our website, etc.If it’s just going to be the 2 of us, would it be a better bet to create an LLC or an S-Corp?Thank you.

Asked on March 16, 2012 under Business Law, New Jersey

Answers:

Mark Kriegel / Law Office of Mark A. Kriegel, LLC

Answered 9 years ago | Contributor

Usually with two people forming a small venture an LLC is the best vehicle since it provides the limited liability with the fewest administrative hassles.  You would also want to have an operating agreement for the LLC with your partner that would spell out each of your rights and obligations in regards to the business.


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