How to Form an LLC in New Jersey

How to Form an LLC in New Jersey – NJ LLC

How to form an LLC in New Jersey: Our guide on forming an LLC in New Jersey. Learn the step-by-step process from choosing a unique business name, filing the Certificate of Formation, appointing a Registered Agent, and obtaining an EIN.

Gain insights into New Jersey’s specific requirements for a successful business journey. 

Form an LLC in New Jersey for $0 + state fee 

Form a New Jersey LLC

To form an LLC in New Jersey for free + state fee, we have listed 3 options to consider: 

You can go online and visit the New Jersey Secretary of State’s website and do it yourself or you can use the ‘free’ service from Incfile or ZenBusiness.

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  • Northwest $39 + state fee  ‘Privacy by Default’

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Forming an LLC in New Jersey for $0 (DIY Summary)

Here’s a brief step-by-step guide to help you through the DIY process, along with relevant links to official resources:

Step 1: Choose a Name for Your LLC

The first step in forming an LLC in New Jersey is selecting a unique name for your business.

Your chosen name must comply with New Jersey’s naming requirements and should not be similar to any existing LLC name in the state.

You can check the availability of your desired name through the New Jersey Business Name Search tool provided by the New Jersey Division of Revenue and Enterprise Services.

Step 2: Appoint a Registered Agent

Next, you need to designate a registered agent for your LLC. A registered agent is responsible for receiving legal documents and official correspondence on behalf of your company.

The registered agent must have a physical address in New Jersey. You can act as your own registered agent or hire a professional registered agent service.

Step 3: File Certificate of Formation

To legally establish your LLC, you must file a Certificate of Formation with the New Jersey Division of Revenue and Enterprise Services.

This document contains essential information about your LLC, including its name, registered agent, and business address.

You can submit the Certificate of Formation online through the New Jersey Business Formation portal.

Step 4: Create an Operating Agreement

Although not required by the state, it is highly recommended to create an operating agreement for your LLC.

This agreement outlines the ownership structure, management responsibilities, and operating procedures of your company.

Having an operating agreement can help prevent conflicts and provide clarity on how your LLC will operate.

Step 5: Obtain the Required Permits and Licenses

Depending on your business activities, you may need to obtain specific permits and licenses to operate legally in New Jersey.

The New Jersey Business Action Center provides a comprehensive list of permits and licenses required for various industries.

Make sure to research and obtain all necessary permits to ensure compliance with state regulations.

Step 6: File Annual Reports

After forming your LLC, you are required to file an annual report with the New Jersey Division of Revenue and Enterprise Services.

The report includes updated information about your LLC, such as the names and addresses of members or managers.

Failure to file annual reports can result in penalties and may lead to the dissolution of your LLC.

For detailed information and official forms, it is recommended to visit the New Jersey Department of the Treasury website or consult with a professional business attorney.

New Jersey LLC: Definitions

  1. Limited Liability Company (LLC): A type of business structure that offers limited liability protection to its owners, known as members. It combines the flexibility and tax benefits of a partnership with the limited liability protection of a corporation.
  2. New Jersey Division of Revenue and Enterprise Services: The state agency responsible for overseeing the registration and regulation of businesses in New Jersey, including the formation and maintenance of LLCs.
  3. Articles of Organization: The legal document that is filed with the New Jersey Division of Revenue and Enterprise Services to officially form an LLC. It includes essential information about the company, such as its name, registered agent, purpose, and duration.
  4. Registered Agent: An individual or entity designated to receive legal documents and official correspondence on behalf of the LLC. The registered agent must have a physical address in New Jersey and is responsible for ensuring that the LLC stays informed of any legal matters.
  5. Operating Agreement: A written contract that outlines the internal operations, ownership structure, decision-making processes, and financial arrangements of the LLC. Although not required by law in New Jersey, having an operating agreement is highly recommended to clarify the rights and responsibilities of the members.
  6. Employer Identification Number (EIN): A unique nine-digit number issued by the Internal Revenue Service (IRS) to identify businesses for tax purposes. An EIN is necessary if the LLC plans to hire employees, open a bank account, or file federal taxes.
  7. Annual Report: A yearly filing that LLCs in New Jersey are required to submit to the Division of Revenue and Enterprise Services. It provides updated information about the LLC’s members, managers, and registered agent, and helps to maintain the company’s active status.
  8. Business License: Certain types of businesses may require specific licenses or permits to operate legally in New Jersey. These licenses are typically issued by state or local government agencies and vary depending on the nature of the business and its location.
  9. Foreign LLC: An LLC that is formed in a state other than New Jersey but wishes to conduct business in the state. Foreign LLCs must register with the Division of Revenue and Enterprise Services to obtain authorization to operate in New Jersey.
  10. Dissolution: The process of formally ending the existence of an LLC in New Jersey. It involves filing dissolution documents with the Division of Revenue and Enterprise Services and settling any outstanding liabilities before the LLC can be officially dissolved.

These terms provide a basic understanding of key concepts related to forming an LLC in New Jersey.

It is advisable to consult with a legal or business professional for more detailed and specific information based on your individual circumstances.

Extended Version

The “Garden State”, if you are a businessman with a green thumb, may be the ideal location to start your limited liability company (LLC). New Jersey, like many other states, has seen an increase in business formations.

According to Census Bureau, the number of applications for new businesses increased by 21.1% in the state between 2021 and 2022.

Our guide to starting an LLC in New Jersey will help you get started.

We will walk you through the entire process, and highlight key considerations like the importance of having an LLC operating agreement for your LLC in New Jersey.

If you want to use an LLC formation service, visit our list of the best LLC services in New Jersey.

This page will provide you with all the necessary steps to look up an LLC in New Jersey, draft a New Jersey LLC operating agreement, and answer questions like, can I be my own registered agent in New Jersey? and how long does it take to get a New Jersey LLC? and ensure your New Jersey LLC is properly formed.

Before you start an LLC in New Jersey

These are the steps you need to take before you can establish your New Jersey LLC.

This will help you avoid wasting time and delay in forming your LLC.

Find out the availability of your business name and hold it for use

It is important to confirm that the name you are interested in for your business’s name is available.

This can be confirmed by using the Department of Revenue search engine.

If you do not have the item in your possession, but are not ready to file it, you can submit Form UNRR-1, The Application to Reservation of Name. The fee is $50. This document can be filed to hold your LLC name for up to 120 days.

Remember that your New Jersey LLC name must include “limited liability company” (or an acceptable abbreviation like “LLC,” L.L.C.,” LC, or L.C.)

Register for an Employer Identification Number (EIN).

You must have an employer identification number before you can register your LLC here in New Jersey.

Sometimes, EINs are called a Federal Tax Identification Number or Federal Employer Identification Number (FEIN).

Most businesses require an EIN. One exception is single-member LLCs. These can be managed with the owner’s Social Security Number (SSN).

EINs are great for LLCs with one member because they can protect your SSN and preserve your privacy. On the IRS Website, you can quickly get your EIN.

Appoint a registered agent

Your LLC must have a registered representative. This person or company will accept important forms for your business, including state paperwork and legal documents.

You have the option to act as your own registered agent or you can appoint someone within the LLC.

Either you or your member must be 18 years old and reside in New Jersey.

You can also hire someone to act as your LLC’s registered agent.

The average cost of services is $100 per year, and prices range from $49 to $300 annually.

Be sure to understand what you’re paying for before you pay. This includes upfront fees as well as what is paid each year.

Public Record Filing

You will need to fill out a Public Records Files for New Business Entity form if you want to create a new business entity in New Jersey.

You must complete this form (link in next section) before you submit your LLC papers.

Submitting Your New Jersey LLC Documents

You are now ready for the next step after you have completed all of the necessary steps. New Jersey LLCs are registered by the Department of Treasury’s Division of Revenue and Enterprise Services.

A Certificate of Formation is also known as Articles of Organization. While the process of filing paperwork is completed online you will need to complete pages 17-19, or Form NJ-REG.

All for-profit entities as well as foreign non-profit entities pay $125. Meanwhile, domestic nonprofit entities pay $75.

New entities must submit the documents for review within 60 calendar days after they have previously submitted their public records form, pages 23 or 24 of the packet.

How to Establish Your New Jersey LLC

There are several important steps you should take after setting up your LLC in New Jersey. These are the additional steps you should take after your business is established.

#1 Send an annual report

Each New Jersey LLC must submit a yearly report. The annual fee is $75 and the process can be completed online.

Your annual report must be submitted by the end of the month in which your business was founded.

#2 Pay your taxes

For tax purposes, single-member LLCs will be treated as individuals and file NJ-1040NR or NJ-1040NR. Multimember LLCs will need to complete Form NJ-1065 the New Jersey Partnership Return.

A “Partner Tax” is required for each LLC member. It costs at most $150.

However, if you create your LLC as an LLC, the per-person minimum fee increases to $375.

#3 Correction of Filing Mistakes

It is important to verify that all paperwork is correct and complete.

To correct any mistakes, you can submit Form L-108 (Certificate of Correction) to rectify them. There is a $100 filing charge.

Most Frequently Asked Questions

What is the cost of a New Jersey LLC?

Domestic and foreign for-profit LLCs pay $125 Nonprofit LLCs pay $75.

Do New Jersey LLCs have to file an annual report?

New Jersey LLCs must file an annual report and pay the $75 filing fees.

Can I become my own registered agent in New Jersey?

Yes, provided you’re at least 18 years old and have a physical address in the state.

Do New Jersey LLCs pay state taxes?

Single-member LLCs may claim their business on their own taxes. Multimember LLCs must submit Form NJ-1065, and each member must pay a “Partner tax” of at least $150.

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