How to Start an LLC in New Jersey | 2024 Guide

Start a LLC in New Jersey

How to Start an LLC in New Jersey: If you’re looking to launch a business in New Jersey, starting a Limited Liability Company (LLC) may be the right choice for you. An LLC provides personal liability protection for its owners while giving them flexibility in managing and taxing the business. This guide provides a step-by-step process for starting an LLC in New Jersey. From choosing a unique name to registering with the state and obtaining necessary licenses and permits, Webinarcare Editorial Team will walk you through setting up your new business entity. So grab a pen and paper, and let’s get started!

What is a Limited Liability Company?

A Limited Liability Company (LLC) is a type of business entity that combines a corporation’s limited liability protection with a partnership’s tax benefits. LLCs are popular among small business owners for their flexibility and ease of formation. In New Jersey, an LLC must have a unique name and file Certificate of Formation with the Secretary of State. Depending on their business needs, LLCs may also elect to be taxed as a corporation or an S-corp. Owners of an LLC, called members, are not personally liable for the company’s debts and losses, and the company’s profits and losses are passed through to the member’s personal tax returns. This makes an LLC an attractive option for those seeking personal liability protection and simplified taxation.

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Steps on How to Start an LLC in New Jersey

To form an LLC for your business, you must follow the guidelines that include naming your LLC, hiring a Registered Agent, filing your Certificate of Formation, creating your LLC operating agreement, getting an employer identification number, opening a bank account and getting business licenses and permits.

Step 1: Name your LLC in New Jersey

After you have decided on the idea to form an LLC in New Jersey, deciding the name for your LLC is significant. There is a complete guide on LLC name guidelines for you to have a proper LLC business name. Here are some regulations you must follow while naming your LLC,

  • The name should not be confused with a government entity.
  • The name should be unique.
  • The name should be available to use.
  • Any other business does not use the name.
  • The new name must include “LLC” if it is a limited liability company.

In New Jersey, if you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 120 days. You must file a name reservation application in New Jersey Secretary of State to keep the name.

Recommended: We recommend a professional service that can offer you unlimited name search, trademark and copyright registration at a reasonable price. We recommend using –

LegalZoom($0 + State Fees for LLC Formation)

You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for filing New Jersey DBA (doing business as). In this manner, you can choose any name you desire for your business. A DBA allows a company to operate under the name of the person or entity who owns it. If you have decided to file for a DBA, you can file it in two methods, by mail and in person. However, before filing a DBA, you should know that you need to renew your DBA from up to five years, which costs around $50.

Step 2: Hire a Registered Agent in New Jersey

Hiring a Registered Agent in New Jersey is a must since a Registered Agent is a person or business entity responsible for receiving important legal documents on behalf of your New Jersey LLC. Most states require you to designate a Registered Agent when forming your LLC.

The qualifications of a Registered Agent vary depending on the jurisdiction. Still, generally, a Registered Agent must meet the following criteria:

  • Availability: A Registered Agent must be available during regular business hours to receive and process legal documents and official correspondence.
  • Physical Address: A Registered Agent must have a physical street address within the state where the LLC is registered. This address, known as the registered office, cannot be a P.O. Box.
  • Residency or Authorization: For individuals serving as Registered Agent, they must be residents of the New Jersey where the LLC was formed. A business entity acting as a Registered Agent must be authorized to do business within that state.
  • Age: A Registered Agent must be at least 18 years old.
  • Good standing: A Registered Agent should not have any legal or financial issues that impede their ability to fulfill their duties.

Choosing a reliable and responsible Registered Agent is essential, as failure to receive and respond to legal documents can seriously affect your business. Some businesses use professional Registered Agent services to ensure compliance and proper handling of legal matters.

However, if you would like to have an easier process in filing the necessary documents, you can get New Jersey Registered Agent Services.

Step 3: File your Certificate of Formation in New Jersey

The Certificate of Formation for an LLC is an important document to start your limited liability company (LLC). New Jersey Certificate of Formation is a simple document that contains the business name and address as well as the name and address of the person who received lawsuits on behalf of the organization.

Here are the guidelines and specific requirements in filing your Certificate of Formation in New Jersey.

1. Obtain the Necessary Forms: Visit the New Jersey’s business filing office website, usually the New Jersey Secretary of State’s office, to download the required forms or file online.

2. Provide the Required Information: Fill in the necessary details in the form, which typically include:

  • The name of your LLC (must include an LLC designator such as “LLC,” “L.L.C.,” or “Limited Liability Company”)
  • The purpose of your LLC (a general statement or specific business activities)
  • The address of your LLC’s principal place of business
  • The name and address of your registered agent (the person or business entity responsible for receiving legal documents on behalf of your LLC)
  • The management structure of your LLC (member-managed or manager-managed)
  • The duration of your LLC, if not perpetual
  • The names and addresses of the LLC’s organizers or members

3. Sign and File the Form: Submit the completed form in the {state} state office, either by mail, in person, or online. You may mail it at New Jersey Division of Revenue, P.O. Box 308, Trenton, NJ 08646.

4. Pay the Filing Fee: When you submit your Certificate of Formation, you’ll need to pay a filing fee of $125. Make sure to check and include the correct payment with your submission.

5. Receive Confirmation: After your Certificate of Formation have been filed and processed, you’ll receive a confirmation from New Jersey, typically a stamped and approved copy of the document or a Certificate of Formation.

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Once you have successfully filed your Certificate of Formation and it has been approved, your New Jersey LLC is officially formed. However, remember to complete additional steps, such as creating an Operating Agreement, obtaining an EIN, and registering for any required licenses and permits.

Step 4: Create Your New Jersey Operating Agreement

An operating agreement is a document that contains all of your company’s organizational details. Drafting an operating agreement in most states is not required. Yet, having one as an internal document is strongly advised. An operating agreement includes information like-

  • About Business
  • Members and management
  • Capital contribution
  • Profit Distribution
  • Change of membership
  • Dissolution

To understand how an operating agreement works, you should check out how to create an operating agreement in New Jersey.

Recommended: Get oprating agreement drafts ready on your table with a help of a professional service. We recommend using –

LegalZoom($0 + State Fee for LLC formation)

Step 5: Get an EIN

After documenting the operating agreement, you should get or request an Employer Identification Number (EIN) in New Jersey. An EIN will serve as the tax ID for your professional corporation. EIN can be obtained from the Internal Revenue Service (IRS). It is a 9-digit number similar to Social Security Number. EIN, however, is distinct from SSN. It is only used for business-related activities, particularly for submitting general taxes. The form must be completed and uploaded to the IRS website.

The application of an EIN in New Jersey can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

In obtaining an EIN for your LLC, you should be aware to ensure that your LLC is eligible for an EIN. You need an EIN if you have employees, operate as a corporation or partnership, or meet other specific IRS criteria. Before applying, gather the required information, including your LLC’s name, mailing address, and the responsible party’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Also, you can apply for an EIN through various methods, including online, by fax, mail, or telephone (for international applicants).

Recommended: Professional services have the EIN included in their LLC formation package. We recommend using –

LegalZoom($0 + State Fee for LLC formation)

Step 6: Open a Bank Account and Prepare for Taxes

After you have filed for and received your Employer Identification Number, you should open a bank account because you will use this account for yourself, your clients, and your employees.

Your business dealings in New Jersey might be simpler with a US business bank account because it boosts your company’s legitimacy and liquidity. Most banks demand an EIN to create a business bank account for firms other than sole proprietorships. Also, having an EIN makes tax preparation easier. You can anticipate paying employment and corporate taxes with New Jersey LLC.

Opening a bank account is necessary for New Jersey business. If you are still wondering where to open an account in your New Jersey, you should check the Best Bank for Small Business in New Jersey.

Step 7: Get a Business and License Permit

You must get a business license in New Jersey before establishing your LLC. A business license is a legal document granted by a state government body that permits you to conduct business within the area under its jurisdiction. The price of business licenses and permits in New Jersey ranges from $50 – $300. If there is a requirement for a specific license or city-based permit, you must inquire with the New Jersey Secretary of State.

Cost to Form an LLC in New Jersey

Even if you have a business name and structure in mind, you should consider whether you can afford the costs of forming an LLC in New Jersey. Certificate of Formation costs around $125. The initial filing fee is $125 (by mail and online), and the annual fee is $75.

If you forget to pay the annual fee for your New Jersey LLC, you will have a penalty of $200. However, you can check the New Jersey LLC Cost for additional information.

Advantages of Creating New Jersey LLC

Even though some people decide on what to do with their businesses, some choose to put it in their own individual name, while others still choose to set it up via LLC in New Jersey. Important benefits will help you set up an LLC in New Jersey.

  • Pass-Through Taxation: The pass-through structure will make the company not pay twice the tax. Most start-ups and entrepreneurs in New Jersey apply for an LLC because of this structure. Pass-through taxation refers to how income and losses from an LLC (Limited Liability Company) are passed through to its members (owners) for tax purposes rather than being taxed at the business entity level. This means the LLC does not pay federal income taxes; the members’ profits and losses are allocated based on their interests. Each member then reports their share of the LLC’s income or losses on their personal tax returns and pays taxes at their individual tax rates.
  • Ownership Flexibility: If you need sole and primary control over your company’s operations, a sole proprietorship will allow you to do so. If you apply for an LLC in New Jersey with flexibility, you will have default rules set by law and need an operating agreement.
  • Personal Liability Protection: Personal Liability Protection protects your business from damage, debts, or legal obligations. In personal liability protection, the company’s profits and earnings will stay as is even if your company is about to be sued. This protection of having an LLC in New Jersey can also be extended to the company’s properties and assets. Many start-up companies will benefit from this since most are starting to build a company. Even if liability exists, the LLC in New Jersey will protect its assets.

FAQs

What does LLC mean in New Jersey?
LLC stands for limited liability company.
What is the cost of starting an LLC in New Jersey?
The cost to start an LLC in New Jersey is $125.
How do I register my LLC in New Jersey?
You can register your LLC in New Jersey by filing Articles of Organization with the Division of Revenue and Enterprise Service.
Do I need an attorney to create an LLC in New Jersey?
No, you do not need an attorney to create an LLC in New Jersey.
Can a non-resident of New Jersey open an LLC in the state?
Yes, a non-resident can open an LLC in New Jersey.
Does New Jersey have an annual LLC fee?
Yes, New Jersey requires LLCs to pay an annual report fee of $50.
What is the processing time for forming an LLC in New Jersey?
The processing time for forming an LLC in New Jersey is typically 10-12 business days.
Can I reserve an LLC name in New Jersey?
Yes, you can reserve an LLC name for up to 120 days in New Jersey.
Do I need to publish a notice when creating an LLC in New Jersey?
No, there is no requirement to publish a notice when creating an LLC in New Jersey.
How long does my LLC in New Jersey last?
Your LLC in New Jersey can last indefinitely when you follow the requirements set by the state.
What are the tax implications for an LLC in New Jersey?
LLCs in New Jersey are subject to state taxes and must file a New Jersey Business Income Tax Return.
Is a registered agent necessary in New Jersey?
Yes, a registered agent is necessary in New Jersey to receive legal notices on behalf of the LLC.
Can an LLC in New Jersey convert to a corporation?
Yes, an LLC in New Jersey can convert to a corporation.
What is the difference between a single-member LLC and a multi-member LLC in New Jersey?
A single-member LLC is owned and managed by only one person, while a multi-member LLC has multiple owners and can have designated managers.
What is a foreign LLC in New Jersey?
A foreign LLC is an LLC that is registered in another state and doing business in New Jersey.
What is a domestic LLC in New Jersey?
A domestic LLC is an LLC that is registered in New Jersey and is doing business in the state.
Can an LLC in New Jersey be treated as an S corporation for tax purposes?
Yes, LLCs in New Jersey can elect to be taxed as an S corporation.
What is the difference between an LLC and a corporation in New Jersey?
LLCs provide support for individual tax reporting, whereas, corporations are distinct two-legged beings who carry their own tax identification information.
Are LLCs in New Jersey required to have an operating agreement?
No, LLCs in New Jersey are not required to have an operating agreement but they may choose to create one.
Can I get a trademark for my LLC name in New Jersey?
Yes, you can get a trademark for your LLC name in New Jersey.
Can I run multiple LLCs in New Jersey under the same name?
No, you cannot run multiple LLCs in New Jersey under the same name.
What is the Registered Agent’s Role for a New Jersey LLC?
The Registered Agent receives legal documents, service of process and correspondence from the state on behalf of the LLC and forwards them to the LLC principal.
Where should I register for my Federal Employer Identification Number (FEIN) if I’m in New Jersey?
You can register for your Federal Employer Identification Number (FEIN) with the IRS.
Is a publication ignored newsletter put on desk useful for an LLC business in New Jersey?
No, a publication ignored newsletter is not useful for an LLC business in New Jersey.
What is the tax rate for LLCs in New Jersey?
The tax rate varies based on the type of LLC and the income of that particular LLC.
Can I name my LLC anything I want in New Jersey?
Not exactly! Individual state regulations generally prohibit business entities from using intricate or hard-to-understand words, phrases, or passages either in writing.
Is New Jersey a good state to form an LLC?
Yes, New Jersey has various beneficial Entrepreneurial factors to launch your start-up.
When must New Jersey LLC file an annual report?
Every NJ LLC requires to file an annual report with the state each year by the last day of the anniversary month for formation for their registered LLC.
How is an LLC canceled or terminated in New Jersey?
Closure of an LLC in New Jersey requires meeting state-standard LLC regulation. Call on authorized inspecting Attorney for assistance.
What is an LLC in New Jersey?
An LLC in New Jersey is a Limited Liability Company that is registered in New Jersey.
What do I need to start an LLC in New Jersey?
To start an LLC in New Jersey, you need to file a certificate of formation with the New Jersey Division of Revenue.
Is it easy to start an LLC in New Jersey?
Yes, it is relatively easy to start an LLC in New Jersey. You can complete the registration process online.
What are the benefits of starting an LLC in New Jersey?
The main benefit of starting an LLC in New Jersey is that it offers limited liability protection for business owners.
How much does it cost to start an LLC in New Jersey?
In New Jersey, it costs $125 to file a certificate of formation to register an LLC.
Can I start an LLC on my own in New Jersey?
Yes, you can start an LLC on your own in New Jersey. However, you may want to consider hiring a business lawyer to help you with the process.
How long does it take to start an LLC in New Jersey?
It typically takes around four to six weeks to start an LLC in New Jersey.
What is a registered agent in New Jersey?
A registered agent in New Jersey is a person or company that is designated to receive legal documents on behalf of an LLC.
Can I be my own registered agent in New Jersey?
Yes, you can be your own registered agent in New Jersey if you have a physical address in the state and are available during business hours.
Are there any annual fees associated with forming an LLC in New Jersey?
Yes, there is a $50 annual report fee that must be paid each year to maintain your LLC’s registration in New Jersey.
Do I need an operating agreement for my LLC in New Jersey?
While it is not required by New Jersey law, it is recommended that every LLC has an operating agreement.
How many members can an LLC have in New Jersey?
An LLC in New Jersey can have one or more members.
What is a member-managed LLC in New Jersey?
A member-managed LLC in New Jersey is an LLC where the members manage the day-to-day operations of the company.
What is a manager-managed LLC in New Jersey?
A manager-managed LLC in New Jersey is an LLC where the members designate one or more managers to run the day-to-day operations of the company.
Is there a publication requirement for LLCs in New Jersey?
No, there is no publication requirement for LLCs in New Jersey.
Can I operate my LLC under a different name in New Jersey?
Yes, you can operate your LLC under a different name in New Jersey as long as you file a business name registration with the New Jersey Department of the Treasury.
Can an LLC in New Jersey be taxed as an S Corporation?
Yes, an LLC in New Jersey can choose to be taxed as an S Corporation.
What is the process for changing the tax classification of an LLC in New Jersey?
To change the tax classification of your LLC in New Jersey, you would need to file Form 8832 with the IRS.
Is there any residency requirement to form an LLC in New Jersey?
No, there is no residency requirement to form an LLC in New Jersey.
What are the reporting requirements for LLCs in New Jersey?
LLCs in New Jersey are required to file an annual report and to pay business taxes.
Can I use a PO Box as the address for my LLC in New Jersey?
No, you cannot use a PO Box as the address for your LLC in New Jersey. You must use a physical street address.
How do I dissolve my LLC in New Jersey?
To dissolve your LLC in New Jersey, you must file Articles of Dissolution with the New Jersey Division of Revenue.
What happens if I do not file an annual report for my LLC in New Jersey?
If you do not file an annual report for your LLC in New Jersey, your LLC may be administratively dissolved.
Can I convert my sole proprietorship to an LLC in New Jersey?
Yes, you can convert your sole proprietorship to an LLC in New Jersey by filing a certificate of formation with the state.
Can I convert a corporation to an LLC in New Jersey?
Yes, you can convert a corporation to an LLC in New Jersey by filing a certificate of formation with the state.
Are there any restrictions on the types of businesses that can form an LLC in New Jersey?
No, there are no restrictions on the types of businesses that can form an LLC in New Jersey.
Can I register an out-of-state LLC in New Jersey?
Yes, you can register an out-of-state LLC in New Jersey by filing a foreign LLC registration with the state.
How long is a New Jersey LLC registration valid for?
A New Jersey LLC registration is valid indefinitely as long as all required reports and taxes are filed and paid.

Also Read

How Fast Can I Form an LLC in New Jersey

One of the biggest factors that impact the speed at which you can form an LLC in New Jersey is how prepared you are. Before starting the process, it is important to have a clear understanding of what an LLC is and how it functions as a legal entity. This includes knowing the benefits and limitations of forming an LLC, as well as the specific requirements set forth by the state of New Jersey.

Once you have a solid grasp of the basics, the next step is to gather all the necessary information and documentation needed to complete the formation process. This includes selecting a unique name for your LLC, preparing and filing Articles of Organization with the New Jersey Division of Revenue, and ensuring that all fees are paid in a timely manner.

Another important consideration when forming an LLC in New Jersey is the choice of a registered agent. A registered agent is responsible for receiving important legal and tax documents on behalf of your LLC. Choosing a reliable and reputable registered agent can help expedite the formation process and ensure that all necessary paperwork is handled correctly.

When it comes to filing paperwork and documents with the state, it is essential to be accurate and thorough. Any mistakes or omissions can result in delays and additional paperwork, so it is crucial to double-check all forms before submitting them to the state.

In addition to being meticulous in your preparation and filing, it is important to be aware of the processing times set forth by the New Jersey Division of Revenue. While the exact timeline can vary depending on a variety of factors, including the volume of applications being processed, having a general understanding of typical processing times can help you set realistic expectations.

Of course, there are also options available to expedite the formation process in New Jersey. For an additional fee, entrepreneurs can choose to use a professional LLC formation service to handle all aspects of the formation process on their behalf. These services can help save time and ensure that all paperwork is handled correctly and efficiently.

In conclusion, forming an LLC in New Jersey does not have to be a time-consuming and overwhelming process. By being prepared, diligent, and understand the requirements and procedures set forth by the state, entrepreneurs can form an LLC quickly and efficiently. With the right tools and knowledge, starting an LLC in the Garden State can be a smooth and seamless process.

Conclusion

In conclusion, starting an LLC in New Jersey is a strategic choice for entrepreneurs seeking a flexible, straightforward business structure with limited liability protection. By following the essential steps, including choosing a business name, filing Certificate of Formation, appointing a Registered Agent, creating an Operating Agreement, obtaining an EIN, and securing the necessary licenses and permits, you can successfully establish your LLC. This business structure offers numerous advantages, such as pass-through taxation and ownership flexibility, making it an attractive option for small business owners looking to grow and protect their ventures. As always, consult legal and business professionals for guidance specific to your situation and state requirements.

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