NJ Business Lawyers

New Jersey businesses that use freelancers, consultants, gig workers, or other independent contractors should pay close attention to recently adopted regulations from the New Jersey Department of Labor and Workforce Development (NJDOL). On May 5, 2026, the NJDOL adopted N.J.A.C. 12:11, a comprehensive regulatory framework codifying how the state applies its strict “ABC Test” to worker classification. The new rules carry an operative date of October 1, 2026.

Although New Jersey has applied the ABC Test for decades through statutes and court decisions, N.J.A.C. 12:11 represents the first comprehensive regulatory framework explaining how the NJDOL interprets and enforces the test. The regulations apply uniformly across the New Jersey Unemployment Compensation Law, the Wage and Hour Law, the Wage Payment Law, the Earned Sick Leave Law, and the Temporary Disability Benefits Law.

For startups and businesses that rely heavily on 1099 workers, these regulations significantly increase the importance of properly structuring independent contractor relationships. In this blog, our New Jersey business attorneys break down the rule.

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Many individuals and business owners operate under the incorrect assumption that when looking to raise capital, they can simply sell securities to any person on the street. However, the general rule is that any public offering of a security must be registered with the SEC, unless an exemption exists.

For many small businesses, registration with the SEC is not feasible due to the expense. Luckily, several exemptions from registration are offered. Some of the most common exemptions are found under regulation D (specifically Rule 506, which is a Safe Harbor under Section 4(a)(2)). Yes, it’s confusing. A Private Placement Memorandum (or PPM) is a document that businesses use to take advantage of such exemptions.

Read on to learn more about PPMs and how they can benefit your business when raising capital.

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Search Google for the best legal entity for your new startup, and you will get different opinions. Startup advisors and CPAs will probably recommend a limited liability company (LLC). That’s because an LLC isn’t subject to double taxation and is easier to set up.

On the other hand, many startup lawyers will recommend the C-Corporation structure (typically a Delaware C-Corp) because corporate law is typically more “stable,” equity (stock) ownership is passive, and the entity is more structured.

How you choose to incorporate your startup business will have massive implications down the road. This blog from our business lawyers explores the basic advantages and disadvantages of each option.

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Anyone starting a new business is faced with a lot of decisions. Arguably the most important is choosing the business entity type and tax status. Business lawyers and CPAs will present entrepreneurs with several options to choose from depending on the legal entity, including “S” election. 

Each type of legal entity has its benefits and limitations. Technically, there’s no legal entity called an “S-Corp.” A company that makes an “S” election for tax purposes is typically referred to as an S-Corp. However, various types of legal entities including LLCs and Corporations can elect S-Corp status. This blog from our business lawyers will discuss the benefits of “S” election.

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