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 creation. According to Census Bureau, the number of applications for new businesses increased by 21.1% in the state between 2021 and 2021.
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.
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 120 days.
Remember that your 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 agents 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 for 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.