A new bill in New Jersey was introduced last week which would amend the 2012 law that established microbreweries in the state and governs their operations and restrictions. This is the first attempt so far to legislatively address the craft brewing industry after a special ruling was issued by the New Jersey Division of Alcoholic Beverage Control (ABC) which implemented restrictions on events and other brewery operations. The ruling was suspended indefinitely only a week…

The Brewers Association, the trade association representing small and independent American craft brewers, recently released 2016 data on U.S. craft brewing. Small and independent craft brewers represent 12.3 percent market share by volume of the overall beer industry, with more than 5,300 breweries operating during the year. In 2016, craft brewers produced 24.6 million barrels. Retail dollar value was estimated at $23.5 billion, representing 21.9 percent market share. By adding 1.4 million barrels, craft…

A Subordination Non-Disturbance and Attornment Agreement (an “SNDA”) is a document that is typically required by a lender for a landlord. Sometimes the lender will leave off the non-disturbance portion of the agreement, as the lender is only interested in the subordination and attornment. The subordination is the agreement of the tenant to subordinate its rights to the lender’s rights in the lender’s mortgage such that the tenant’s rights under the lease will be subject…

On April 15, 2013, the Farmland Assessment Act of 1964, N.J.S.A. 54:4-23.1 (the “Act”) was amended imposing new requirements for farmland assessment beginning in tax year 2015 The Act provides for property tax exemptions up to 98% for a landowner that uses the property for farming and meets the eligibility requirements of the Act.   In order to be eligible for farmland assessment, the land in question must be “actively devoted to agricultural or horticultural use”…

A Shareholder Agreement, sometimes referred to as a Buy-Sell Agreement, can be a helpful tool in the structuring and governance of a closely held corporation.  Unlike publicly traded and large corporations, closely held corporations have only a few shareholders, which in some cases are friends or members of the same family.  Although in an ideal world shareholders of a closely held business get along, especially when friends and family, it is important for the Shareholders…

Before you agree to take the plunge to expand your solely owned limited liability company into a multi-member limited liability company, you should consider important issues that should be discussed with your new partner(s) prior to any transaction taking place.  Many solely owned limited liability companies do not have an operating agreement in place, and if they do, it probably is not sufficient to address the complexities involved in a multi-member LLC.  An operating agreement…

When an organization is referred to as exempt from income tax by the Internal Revenue Service, it is typically assumed that the organization is a 501(c)(3) charitable organization.  Organizations that are exempt pursuant to Section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals.  Some examples of charitable organizations are those organizations that provide relief to the poor, distressed…