A limited liability company or LLC is a business structure that combines the benefits of pass-through taxation with the limited liability advantages that corporations offer. If you need to create an LLC in New Jersey but don’t know how we’ll provide you with all the information you need.
Here’s what you need to know about how to start an LLC in New Jersey.
|State||New Jersey||Pennsylvania||New York||Connecticut||US Average|
|LLC Filing Fee||$125||$125||$200||$120||$130.38|
|LLC Annual/Biennial Fee||$75 (every year)||$70 (every 10 years)||$9 (every 2 years)||$80 (every year)||$89.34 (every year)|
|Corporate Tax Rate||6.5-11.5%||9.99%||6.50-7.25%||7.50%||5.60%|
|Nominal GDP per capita||$72,524||$64,751||$93,463||$82,233||$64, 773.08|
Before You Set Up An LLC In New Jersey
The truth is that creating an LLC in New Jersey is easy and won’t take very long. However, there are a few things you should take into consideration before making your company official. Here are some essential factors to consider:
- How many members or managers will your business have?
- What is your target market?
- Do you have the resources you will need to get your business started?
- How will you get your company in front of them?
- What are your goals?
- Do you have a timeline for reaching these goals?
The best place to answer these is in a business plan. This will help you know where you’re going and how you’re going to get there. If you’re applying for a business loan, some creditors may require a business plan, so this is something that all new business owners should spend time on before they form an LLC.
What Does It Cost To Start An LLC In New Jersey?
Another important thing that many new business owners want to know is: “how much to start an LLC in New Jersey?” We’ve broken down the cost for you, so you know what to expect.
- The minimum cost for setting up an LLC in the state is $125. This fee is paid to the New Jersey Division of Revenue and Enterprise Services when filing the company’s Certificate of Formation
- You may also have to pay a fee for a registered agent if you cannot find your own
- To file for the reservation of a name, you’ll be required to pay $50
- $50 plus $0.10 per page for certified copies of documents
- If you need a certificate of good standing, you will be charged a fee of $50 that is payable to the Division of Revenue and Enterprise Services
Suppose you require all the services listed above. In that case, you’ll pay over $275 to set up your limited liability company.
Steps To Start An LLC In New Jersey
When you’re ready to create your New Jersey LLC, you can follow the steps we’ve listed below.
Pick A Name For Your LLC
All LLCs must have a name that includes the wording “Limited Liability Company” or the acronym “L.L.C.” according to New Jersey legislation.
Moreover, it has to be unique and distinguishable from the business names of other registered commercial enterprises already registered with the Division of Revenue and Enterprise Services in the state.
You must also ensure that the name you choose doesn’t include any restricted words, such as university, bank, FBI, or State Department. These terms can cause confusion among other government and non-government institutions.
The New Jersey Business Record Service’s registered company name database can be used to check the availability of names.
By submitting an Application for the Reservation of a Name to the Division of Revenue and Enterprise Services in New Jersey, you can secure a business name for a maximum of 120 days. The form must be filed via the Business Charter Amendment Service site, and the cost of filing is $50.
Find A Registered Agent In New Jersey
If you’re setting up an LLC in New Jersey, you will be required to appoint a service of process agent, a person or company who agrees to take court documents for the company if it is sued.
You can choose to have a New Jersey resident or a domestic or foreign entity authorized to conduct their business in the state serve as the registered agent.
Once you have appointed an agent and have obtained the person or entity’s name and physical address, you’re ready to file the Certificate of Formation.
|Did You Know?|
You can be your own agent for a New Jersey LLC if you choose to.
|ZenBusiness – $49 + state fees to register your LLC (read review)|
|Incfile – $0 + $50 state fees to register your LLC (read review)|
Certificate Of Formation
To make your business official, you’ll need to file a Certificate of Formation with the New Jersey Division of Revenue. You can submit your application by mail, online, or in person.
Before you do this, however, you might want to decide whether your limited liability company will be administered by members or managers.
The cost of filing is $125. An additional $3.50 applies if you file via the online portal.
Other Required Documents
Next, you may need to register your business as an employer for tax purposes.
Tax and business entity filings: Within 60 days of establishment, all New Jersey LLCs must file with the Division of Revenue and Enterprise Services in New Jersey for the corporate entity and tax filings.
Business license: The state might ask you to apply for a license, registration, or certification, depending on what type of business your company conducts. Browse the New Jersey Online License and Certification site for further information.
A local business license from the county or city might also be required for your LLC. Consult with the clerk of the town or city where the LLC operates for more information about these licenses.
State tax registration: Regardless of whether a company plans to collect sales taxes or have staff, all LLCs in New Jersey are obligated to register with the New Jersey Division of Revenue.
To apply, go to the Division of Revenue and fill out a Business Registration Application form. This form can be submitted electronically or via mail. Before filing the Application, an initial Public Records Filing must be filed within 60 days.
Limited liability companies in New Jersey must pay a minimum yearly state tax of $125 for each member.
Draw Up An Operating Agreement
A New Jersey LLC operating agreement is not obligatory. However, it is highly recommended because it can demonstrate that your LLC is a separate entity, which can help it retain its limited liability status. If no operating agreement exists, your business will be governed by state law.
An operating agreement is a private document created by the company that outlines the rules for how the limited liability company will operate. It describes the duties, roles, and privileges that managers and members have and how the company will be governed.
Get An EIN
Suppose your limited liability company has employees. In that case, you will need to apply for an Employer Identification Number or EIN.
Concerning one-member LLCs, you only need to get an EIN if the company will have workers or if you choose to have it taxed as a corporation. An EIN can be obtained by applying on the IRS’s official website.
The Forms You Need To Register An LLC In New Jersey
To help you find what you need, we’ve compiled a list of the forms you might need when forming an LLC in New Jersey.
- Certificate of Formation
- Registration of an alternate name
- Register for state tax
- Business Registration Application
- Dissolve your business
|Did You Know?|
You don’t have to use the registered name for your business. Instead, you can use an assumed name, often called a DBA or “doing business as.” However, you will have to register the name with the New Jersey Division of Revenue & Enterprise Services after paying a fee of $50.
LLC Taxes In New Jersey
LLCs have the option of being taxed as pass-through businesses or as corporations. If you choose a pass-through entity, your company will not be responsible for any federal or state taxes, making New Jersey a great place to start an LLC.
Members record their portion of the company’s profits and losses on their personal tax returns instead. If you choose to be registered as a corporation, however, you will be liable for both the state and federal corporate tax rates in New Jersey.
How Long Does It Take To Form An LLC In New Jersey?
Suppose you file your Certificate of Formation online. In that case, it will take one to two business days. However, if you go the mail route, you can expect to wait up to seven to eight weeks.
We recommend all businesses apply online to speed up the process.
How Much Does It Cost To Run An LLC In New Jersey?
To run your LLC, you must file an annual report, which costs $50 per filing. The costs of running an LLC in New Jersey are relatively low.
This number doesn’t include the costs that come with operating a business. Depending on your business, your yearly costs could be very high.
What To Do After Formation
Creating an LLC is just the first step. You’ll need to do a few other things to get your business to where it needs to be.
- Create a Logo. This will help to establish your brand and help it stand out.
- Build a Website/eCommerce Store. Establish your online presence and sell products online with a professionally designed website or eCommerce store.
- Bank Account. Ensure that your business has its own account to keep your business dealings separate from your personal transactions.
- Business Insurance. Protect your business from liability with insurance coverage.
- Annual Reports. Prepare to file your annual report by the due date each year to avoid any penalties.
These steps are essential to ensure that your business runs smoothly.
Resources To Start A Successful LLC In New Jersey
Here are the resources you’ll need to start your New Jersey LLC:
- Business name database
- New Jersey’s Business Charter Amendment Service website
- Division of Revenue Business Formation web portal
- Register for state tax
- Business license application
- Apply for an EIN
Start Marketing Your LLC In New Jersey
To make more sales, you’ll need to reach more people by marketing your company. You’ll need to focus on web-based and traditional methods as part of an organic marketing strategy.
It is a good idea to hire a professional marketing team to help you devise a good marketing plan.
How To Dissolve An LLC In New Jersey
You can close your company by completing the Certificate of Dissolution and submitting it online or via mail. A filing fee of $100 will apply for domestic LLCs, and a $125 fee is payable for foreign LLCs.
Now that you have all the information you need on how to start an LLC in New Jersey, you’re ready to become your own boss and do business on your terms.
With dedication and a little help from our guide, you can take the first step toward becoming the owner of a limited liability company in New Jersey.
If you need to start an LLC in another state, browse our list of guides to find the information you need!