Thanks tagteam,
I was hoping someone would come through with a definitive response, and this certainly sounds pretty definitive to me. I even posed my question to the two law professors who teach the relevant course:
CORP7131 | Business AssociationsThis course considers the organization and operation of business enterprises with particular emphasis on the corporate form. The class includes an introduction to agency and partnership and limited liability companies. Corporate issues to be discussed include: nature of the corporation; corporate formation; corporate privilege and power; special problems of close corporations; fiduciary duties of directors and controlling shareholders; rights of shareholders; use of proxy machinery; derivative suits; and liability for insider trading, including an analysis of SEC Rule 10b-5. |
Mind you, I wasn't asking them for advice; rather, I was asking the same question I posed in this forum, and here's the pitiful response they gave me:
"We cannot give you legal advice. You should talk to a lawyer. However, in some other states, the structure you're proposing works. On the basis of some assumptions beyond the scope of this email, to confirm whether the same is true in New Jersey, the lawyer would probably want to look at the definition of "member" and the definition of "interest" in the relevant statute. If someone can be a member without an ownership interest, the answer is probably yes. Again, this isn't legal advice and you should consult with a lawyer. I have never looked at the NJ LLC statute and this is just an educated guess."
According to Wikipedia, Seton Hall Law School is the only private law school in New Jersey, and, according to the U.S. News & World Report rankings, is the top-ranked of the two law schools in the state.
