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How to Form an LLC in New Jersey

4/18/2016

If you’re starting a business in New Jersey, you may be interested in organizing it as a limited liability company. LLCs formed under New Jersey law have similar tax treatment and ease of operation that sole proprietorships do, but shield owners’ personal assets if the company has legal or financial problems. This gives an LLC many of the benefits of a corporation, but without the complications and extensive record-keeping requirements of formal incorporation.[1]

EditSteps

EditChoosing a Name

  1. Come up with a business name that reflects the products or services you offer. New Jersey law requires your name to include the words “Limited Liability Company” or the initials “LLC.”[2]
  2. Search the NJ business name database to ensure your name is distinct.
    • Your name must be distinguishable from any other name currently in use or reserved in the state. [3]
    • The online search system is available for free. If you need additional help, you can call the NJ Division of Revenue and Enterprise Services at (609) 292-9292. However, you will be charged a fee for this assistance.[4]
    • Name availability checks also are done automatically when you file your LLC formation documents online.[5]
  3. Reserve your name. If the name you want to use is available in New Jersey, but you are not yet ready to file formation documents for your LLC, you can reserve your name by filling out a paper form and mailing it to the NJ Division of Revenue, Corporate Filing, PO Box 308, Trenton, NJ 08646. You can also fax it to (609) 984-6851.
    • Your reservation form must be accompanied by a $50 filing fee.
    • If you plan on forming your LLC in New Jersey, your name will be reserved for 120 days.[6]

EditCompleting the Public Records Filing

  1. Appoint a registered agent. New Jersey law requires all LLCs registered in the state to have an agent for service of process in the state.
    • The agent may be an individual resident or another company authorized to do business in the state.
    • The registered agent must have a physical street address in New Jersey.[7]
  2. File Certificates of Formation and pay filing fee. New Jersey allows you to form an LLC online by answering a few questions about your business and paying the $125 filing fee.
    • If you’re forming a nonprofit company, the fee is only $75.
    • The form must include your LLC’s name and address, and the name and address of your LLC’s registered agent. It also must include the purpose of your LLC and the names and addresses of all members or managers of the company.
    • If you don’t want to file online, you can download the state Business Registration Packet, print the required forms and mail them to the Division of Revenue.[8]
  3. Prepare an operating agreement. Although state law doesn’t require LLCs to have an operating agreement, having one in writing ensures all the members of your company understand their rights and responsibilities.
    • Your operating agreement governs the relations of the members of your company, to each other and to the company itself, and describes their rights and duties. It also details the activities of the company, how they are conducted, and how decisions are made.
    • Without an operating agreement, the default rules set out in the New Jersey LLC statute will apply to your business’s operations. Before you decide to forego an operating agreement, read the state law and make sure you understand how those rules will govern your business. [9]
  4. File annual reports. State law requires all LLCs operating in New Jersey to file a report with the Division of Revenue each year.
    • The report must include the name and address of your LLC, your LLC’s registered agent, and all members or managers of your LLC.
    • Each report must be accompanied by a $50 filing fee.[10]

EditComplying With Tax and Regulatory Requirements

  1. Obtain an Employer Identification Number from the IRS. If you plan on opening financial accounts in the name of your business, have more than one member, or have employees, you’ll need a federal EIN.
    • The EIN is used for your business the same way you use your Social Security number. It is a unique identification number for your LLC that can be used to open bank accounts, apply for loans, or file taxes.
  2. Use your EIN to register with the state. All business must register for employer and tax purposes. Most businesses also have a federal EIN, and New Jersey uses that number for state tax identification as well.
    • If you don’t have a federal EIN, you can apply for one as you fill out the form online to register with the state.
    • You can file the tax form at the same time you form your LLC. However, if you choose to file separately, the tax registration must be completed within 60 days of registering your LLC.[11]
  3. Acquire all necessary state or local business licenses. Some types of businesses require additional licenses, registrations, certifications or permits to operate. You may be charged a fee for these licenses.
    • For example, if you’re opening a beauty shop, you must get a license and registration, and pay the $130 fee.[12]



EditVideo

EditWarnings

  • If you already formed an LLC in another state but want to do business in New Jersey, you must first register with the New Jersey Division of Revenue and appoint a registered agent for service of process.
  • To register as a foreign LLC, you file the same form as a new business entity and pay the $125 filing fee. You must also include a certificate of good standing or similar document from the state where you formed your LLC.[13]

EditSources and Citations

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