The “Purpose” for Forming LLCs was Expanded by New Jersey’s Revised Uniform Limited Liability Company Act

Currently, the New Jersey Limited Liability Company Act allows LLCs to “carry on any lawful business, purpose or activity.”  N.J.S.A. 42:2B-8.   Sadly, the current law does not allow an LLC to be used for “non-profit” use such as a charity or placing a family vacation home into an LLC.  A small, but important change promulgated by the enactment of the New Jersey Revised Uniform Act is the change in that language. The Revised Act allows LLCs to be used for “any lawful purpose, regardless of whether for profit.”  Hence, non-profits may use an LLC after March 18, 2013.  Moreover, families could form an LLC and place their vacation home into that corporate structure even though the use of that home was not for profit.