Beautiful coastline. Atlantic City. Bruce Springsteen and salt water taffy. New Jersey is known for many things including the stunning Passaic River Great Falls.
You’ve chosen to form an LLC in New Jersey. Next steps? The price? Below are the processes, cost, and documents needed for New Jersey enterprises.
When forming a business, a limited liability corporation (LLC) provides legal cover and tax benefits, among other perks. Follow these procedures to start your New Jersey LLC company up and going if you’ve established that an LLC is the appropriate company structure for your purposes.
You may opt to put in place the LLC yourself, or you can hire a professional company incorporation service to do this for you.
1. Identifying Your New Jersey LLC
When choosing a name for your New Jersey LLC, you must adhere to some important rules:
- Names of existing companies registered with New Jersey’s Division of Revenue & Enterprise Services must be identifiable from the name of a limited liability company.
- “Limited Liability Company” or “L.L.C.” must be added to the end of an LLC’s name.
Check the New Jersey availability of your proposed LLC name
After selecting a name that complies with New Jersey’s naming standards, use the New Jersey Business Search to ensure if it is available in the state.
Reserve your company title with the New Jersey Division of Revenue and Enterprise Services
Reserving your LLC’s name is a smart idea since it stops other New Jersey commercial enterprises from utilizing it prior to your organization’s formal formation.
Submit an online Application for Reservation of Name to the New Jersey Division of Revenue & Enterprise Services to reserve an LLC’s name for up to 120 days. There is a $50 filing fee.
2. Choose a NJ Registered Agent
Each New Jersey LLC is required to establish an agent for administration of process inside the state. This is a person or corporation that agrees to take legal documents on behalf of the LLC if it is sued.
The Registered Agent might be either a NJ resident or a company permitted to do business in New Jersey. The Registered Agent must hold a street address in the state of New Jersey.
What does a Registered Agent do?
A Registered Agent is somebody or corporate organization responsible for receiving vital tax forms, legal papers, notification of litigation, and official government communication on your firm’s behalf. Consider your representative as the state’s point of contact for your company.
Who qualifies as a Registered Agent?
A Registered Agent must be a permanent New Jersey resident or a firm, like a Registered Agent firm, allowed to do business in New Jersey. You may choose a member of your organization, including yourself.
3. Submit a Certificate of Formation
Your Certificate of Formation is just a paper that formally creates your limited liability company by providing basic information about it. This paperwork formally registers your firm with the state, therefore it’s crucial to have every information correct.
What information must a Certificate of Formation contain?
When completing your New Jersey Certificate of Formation for an LLC, you must provide the following:
- LLC’s name
- What is the term of a limited liability company (LLC)?
- The location of the LLC’s main office.
- Address of the registered agent for the company
- Location in which the Secretary of State can send LLC notifications.
- Whether the company will be administered by its members or by its managers.
- Whether the company will provide professional services.
- Names and addresses of all LLC organizers
- Identifying information for at least one member or manager who has oversight responsibilities for the limited liability company’s day-to-day activities, including their name and address.
- Foreign LLCs, or LLCs that operate in a state jurisdiction apart from the one in which they were registered, must pay a separate charge.
Registration of the Certificate of Formation
The Division of Revenue and Enterprise Services of the New Jersey Department of Treasury registers LLCs. Often known as Articles of Organization, generally speaking, this paperwork is filed online, although there is a company registration bundle package; you should finish pages 17 – 19, or Form NJ-REG.
The cost will be $125 for any and all organizations with a profit motive and overseas nonprofits. In the meanwhile, domestic nonprofits pay $75.
Within sixty days of submitting your public documents form or sheets 23 to 24 in the package, new entities must submit their papers for inspection.
4. Get Certified From the State
Following the LLC’s formation paperwork has been submitted and approved, if you ask for a copy and pay the appropriate fee, the state will send you a certificate confirming the LLC’s existence.
This certificate allows the LLC to get an Employer Identification Number (EIN), business permits, and a business bank account.
5. Create an Operating Agreement
Creating a detailed LLC operating agreement is highly suggested for all new limited liability corporations in New Jersey, while not being a legally required step for incorporating an LLC.
The operating agreement must stipulate:
- The LLC’s organizational structure.
- Determine the individual duties and responsibilities of the members of the LLC.
- The operation of the LLC.
- With no operating agreement that clarifies the precise responsibilities of its membership, an LLC may suffer substantial legal and practical challenges.
6. Obtain a Federal Employer Identification Number (EIN)
Many LLCs are required to have a Federal Employer Identification Number (EIN), often known as a tax ID number. The EIN identifies your company to the IRS and is required to pay government employer taxes, open a savings account (in many situations), and recruit workers.
Via the IRS online, which is accessible for free, you may determine whether you require an EIN and submit an application. The major exception to this rule is only one member LLCs, which may use the owner’s Social Security number instead of obtaining an EIN.
Certain New Jersey-based LLCs may be needed to get one or more state or municipal business licenses or permits, depending on the nature and location of their operations.
Depending on the nature of your enterprise, the Government of New Jersey may require you to get a permit, certification, or registration. For further information, please visit the New Jersey Online License & Certification page.
Your LLC may also be required by the city or county to get a local business license. For local licenses, consult the city or town clerk at the location of the LLC’s principal office. Contact the municipal or county clerk where your LLC is situated for licensing information.
7. Schedule Annual Renewals
Annual reports are required from all New Jersey LLCs. There is a $75 charge, and the application must be submitted online. This report is due on the final day of the month that marks the anniversary of your company’s founding.
Make Tax Payments
Single-member LLCs are recognized as persons for tax purposes and must file Form NJ-1040 or Form NJ-1040NR. Multi Member LLCs are required to submit Form NJ-1065, the NJ Partnership Return.
There is a minimum Partner Tax of $150 per member of an LLC. Nonetheless, if you establish your LLC as a corp, the minimum price per person increases to $375.
Prices and Next Steps?
The New Jersey Division of Revenue assesses a $125 filing fee for the submission of public documents. When filing online with a credit card, an additional $3.50 will be assessed. If you desire to reserve your LLC’s name before filing, you must pay $50 to submit a name reservation application.
Consider the following additional LLC optional expenses:
- Company name reservation
- Doing business as (DBA) name
- Certified document copies
- Certification of existence
By registering an LLC, you establish a legal framework for doing business. Businesses should prepare to maintain their LLCs current and compliant on the NJ state’s website.
An incorporated LLC also gives you the ability to perform the following:
- Register your organization also with the state’s tax agency.
- Establish a business account
- Apply for a commercial credit card.
- Purchase coverage for your business.
- Obtain the essential permissions and licenses to run your company, such as health department permits, building permits, home occupancy permits, and professional licenses. Some states mandate a seller’s license to do business.
- Protect your brand and logo by registering a trademark
DIY or professional company formation?
To incorporate an LLC, hiring an attorney is not legally required. The majority of states permit LLC creation by establishing the commercial enterprise on the state secretary’s website and through the IRS.
If you are inexperienced with the LLC creation procedure, contacting an experienced LLC provider may be the best way to assure a smooth and efficient creation.
When creating a new firm, entrepreneurs may save dollars and time by using a professional agency that specializes in company forms. At between $50 and $500, they will take care of the issues you may not have pondered over, including:
- Your firm’s complete details, documented down in an operating agreement for your limited liability corporation
- Creating a Certificate of Establishment listing the registration agent, LLC administration, as well as the date of formation.
- Being the registered agent for your business.
- Keeping comprehensive records in the event of litigation or audits.
- Payment of fees and registration with the appropriate parties.
- Checking the availability of the LLC name and registering your company name
- Completing and submitting all legal and organization formation paperwork.
How much does a New Jersey LLC cost to establish?
The filing charge for a New Jersey LLC is $125, with a credit card processing fee of $3.50 and a name reservation fee of $50.
How can I form a New Jersey LLC?
To start an LLC in New Jersey, you’ll need a registration fee, an LLC name, a Registered Agent, a Certificate of Formation, an Operating Agreement, and an EIN from the Internal Revenue Service.
Tom is the founder of Gottagrow.io. He reads the offers, deciphers the details including features, pricing, included services and more to find you the best products and services.