Good points.
Have you considered your type of business entity???
A for profit business with partners has the following options in New Jersey.
General Partnership
Limited Liability Company (LLC)
Limited Liability Partnership (LLP)
S or C Corporation
A general partnership provides the least amount of protection to the partners. The owners are all liable for legal actions and debts the company may face personally. It may be OK for a new business, but once it is up and running, I would suggest going to an LLC or LLP...
An LLC is a legal form of business company offering limited liability to its owners. It is similar to a corporation, and is often a more flexible form of ownership, especially suitable for smaller companies with a limited number of owners. A limited liability company with multiple members may choose, generally
at the time that the new entity applies for a US federal taxpayer ID
number, to be treated for federal tax purposes as a partnership, as a C Corporation, or as an S Corporation. An LLC can elect to be either "member managed" or "manager managed." An LLC can avoid "double taxation"
A limited liability partnership has elements of partnerships and corporations. In an LLP, all partners have a form of limited liability,
similar to that of the shareholders of a corporation. However, the
partners have the right to manage the business directly, and (in many
areas) a different level of tax liability than in a corporation. An LLP can also avoid "double taxation".
A corporation is a legal entity (technically, a juristic person) which has a separate legal personality from its members. The corporation can be a public or publicly traded corporation, the shares of which are traded on a public market designed specifically for the buying and selling of shares of stock of
corporations by and to the general public. Most of the largest
businesses in the world are publicly traded corporations. However, the
majority of corporations are said to be closely held, privately held, or close corporations, meaning that no ready market exists for the trading of shares. Most owners of corporations are "double taxed" - once when the company makes the money, and again on the individuals paycheck. A corporation can avoid federal "double taxation" by qualifying for and electing S Corporation status.
The requirements for S Corporation status are as follows ---
* Must be an eligible entity (a domestic corporation, a partnership or a
single-member or multiple member limited liability company).
* Shareholders must be U.S. citizens or residents, and must be natural
persons, so corporate shareholders and partnerships are to be excluded.
* Must have only one class of stock.
* Profits and losses must be allocated to shareholders proportionately to each one's interest in the business.
If this is something you guys are serious about (it seems like it), I would seriously look into forming an LLC or LLP. They will provide you with an extra layer of protection should something go wrong.
If the business is indeed profitable (I hope it is) you should consider moving to an S Corporation for even greater protection.