How To Start An LLC In New Jersey 2024?
Reviewed by Jazmin Castello - MBA
The article is checked by our editorial team, Which includes entrepreneurs who are painfully aware of how overwhelming and challenging it is to start a business for the first time.
Just like any other business structure, starting and running an LLC costs money in every US state. For that reason, knowing what it costs to start an LLC in every state is a very crucial step in gearing your business in the right direction. Our LLC NJ cost review has been crafted to walk you through wonders: how to start an LLC in New Jersey with the general cost to form and run an LLC based on the state requirements.
How To Get An LLC In New Jersey?
- Step 1: Name Your New Jersey LLC
- Step 2: Choose Your Registered Agenttep
- Step 3: File Articles of Organization
- Step 4: Prepare an Operating Agreement
- Step 5: Obtain an EIN
- Step 6: File Annual Reports
How To Start An LLC In New Jersey?
Name Your New Jersey LLC
The name of the LLC must be available for use in the state of New Jersey and meet other state requirements. For that reason, you need to conduct a thorough online name search on various business databases.
Choose Your Registered Agent
New Jersey’s LLCs are required to appoint registered agents who will receive important documents and service of process on behalf of the company. A registered agent can be a business entity, a third-party individual, a member of your company, or yourself.
File Articles Of Organization
To form an LLC in New Jersey, you will have to file a certificate of formation with the Division of Revenue and Enterprise Services. You can register with New Jersey by filling out the form online and paying the required state filing fee.
Prepare An Operating Agreement
You will need to create an operating agreement that outlines the ownership and operating procedures of your business. LLC operating agreements ensure that LLC members are on the same page and reduce the chances of feature conflict. In essence, LLC operating agreements serve the same way as the board of governors in a corporation.
Obtain An EIN
Employer Identification Number (EIN), is like your company’s social security and it is very important. You will need an EIN to open a business bank account, file and manage federal tax as well and hire employees in New Jersey. You can download an EIN form from the IRS (Federal Internal Revenue Service) website for free.
File Annual Reports
New Jersey has to keep up-to-date business records. They do this by ensuring a New Jersey LLC files an annual report with the Division of Revenue & Enterprise Services.
Filing Requirements & Overall New Jersey LLC Costs
New Jersey is not the cheapest state to form an LLC considering its high taxation and filing fees. However, forming and running an LLC comes with more expenses in every state in addition to the filing fees. To better understand the overall New Jersey LLC fees, we have broken down the charges under the following requirements.
New Jersey LLC Filing Fees
The main New LLC cost is the filing of the certificate of formation/public records with the New Jersey Division of Revenue and Enterprise Service. You can file a certificate of formation online and pay $125 state fees. However, if you need a certificate of good standing you can obtain the document by ordering through the Division of Revenue and Enterprise service and paying an additional fee of $50.
New Jersey LLC Annual Report
To keep your company in good standing with the state, a New Jersey LLC must file an annual report with the Division of Revenue & Enterprise Services. The form is due by the end of the month of your LLC formation. You can submit it through the New Jersey Division of Revenue & Enterprise Services[1] website along with a $75 state filing fee.
Registered Agent Fee
An LLC in New Jersey must have a registered agent that will collect important documents on behalf of your company. A registered agent in New Jersey can be a third-party individual, a business entity, a member of your company, or yourself. The charges for hiring a professional service will depend on the service you settle on. In general, a New Jersey registered agent will cost you somewhere between $50 to $300 per year.
Application For Withdrawal (Foreign LLC)
To withdraw an LLC in New Jersey, you will have to file a Certificate of Cancelation of Limited Liability Company with the Division of Revenue. The statutory fee for domestic New Jersey LLC cancelation is $100 while the fee for foreign LLC cancelation is $125.
Business Licenses
Some businesses require licenses and permits in order to operate in New Jersey. The state doesn’t have a statewide business license requirement, so check with your city if you will need a license or permit and the charges.
Taxes
An LLC is categorized as a “pass-through entity” by the federal government for tax purposes just like a sole proprietorship or a partnership. Meaning, LLC members or LLC owners report income and losses to their individual tax returns. LLC members will also pay self-employment tax toward Social Security and Medicare. If your company sells merchandise, you will also pay sales tax. However, you can have your LLC taxed as a corporation to avoid self-employment taxes.
Generally, New Jersey is among the worst states to establish an LLC due to its high taxation. The state corporate tax rate is 9%, and individual income tax ranges from 3.5% on income of $35,000 or more-8.97% on income of $500,000.
The sales tax rate is 6.65% while the self-employment tax rate is 4.3%.
Other LLC Filing Costs
In addition to the mandatory charges that have been discussed above, there are other optional filing fees associated with forming an LLC in New Jersey.
LLC Name Reservation Fee
Name reservation is not a mandatory requirement in New Jersey but is a good idea if you have a name in mind and you are not ready to form an LLC just yet. Reserving a name will prevent someone else from using that particular name for as long as it is reserved.
You can have your LLC name reserved for 120 days in New Jersey by filing name reservation Form UNRR-1 during which you will have to pay a one-time $50 filing fee.
“Doing Business As” (DBA) Name
If you are planning to run your New Jersey LLC with a different name from your official business name, you’ll need to register a DBA. For a New Jersey LLC, you must file a Registration of Alternate Name. The form is submitted to the New Jersey secretary of the state alongside a $50 filing fee.
Business Domain Name & Website
A business domain name is the web address for your business website. You need to acquire the domain name for your New Jersey LLC so that nobody else can use it.
Acquiring a domain name in New Jersey costs between $10 to $20 depending on the discounts offered. However, newer domain name extensions such as apps. may go beyond this range.
Articles Of Organization Fee
New Jersey LLCs must file articles of organization/certificate of formation with the New Jersey Division of Revenue and Enterprise Service in order to set up and run a business in the state. The cost of Filing a New Jersey certificate of formation is a one-time fee of $125.
Attorney Fees
You can form a New Jersey LLC yourself and there is no mandatory requirement to hire an attorney. However, an attorney will undertake the whole formation process and handle all the legal issues on behalf of the company, and this offers peace of mind. Hiring an attorney costs anywhere from $500 – $2,000 flat fee or $150 – $350 hourly fees depending on who you hire.
Tax ID Number (EIN)
A Federal Tax ID number is essentially a social security number for an organization. You will have to get a Tax Identification Number to help you open an account, file and manage federal and state taxes, and hire employees. You can get an EIN for your New Jersey LLC for free from the IRS by applying online.
Top 2 New Jersey LLC Services
| Zenbusiness | IncFile | |
| Award | Best LLC formation packages | Best LLC basic package pricing |
| Detail | Read Review | Read Review |
| Link |
ZenBusiness
One of the New Jersey registered agent services is ZenBusiness. ZenBusiness is not only cheap but is well-perked for LLC formation and maintenance. Zenbusiness will help you prepare and file your articles of organization with the New Jersey Division of Revenue at an affordable basic fee. However, their package charges don’t include the public records filing fee.
Despite their cheaper three-formation packages, they will offer you a free registered agent service for 1 year. In addition, the company offers a worry-free guarantee feature that includes preparation and filing of your annual report, and two amendments per year with their top package.
ZenBusiness’s other biggest win is its reliable customer support service. As a result, the company boasts the best customer feedback.
IncFile
IncFile is the cheapest New Jersey LLC formation service if you opt for their basic formation package. With the free basic package, the company will prepare and file your LLC with the NJ Division of Revenue and Enterprise Services on your behalf.
The best part, they include the 1-year free registered agent service in their free package as well. Other services offered in addition to filing an article of the organization include name search, preparation of an operating agreement, obtaining an EIN, company alerts on annual report deadlines, licenses, and statement of formation among others. The company also boasts a 1-day processing speed and great customer support.
Conclusion
The cost to form an Ohio LLC is average. This is made even better by the fact that Ohio doesn’t require annual report filing. This makes ongoing LLC maintenance cheap as well. For that reason, Ohio is a great option for both foreign and domestic LLCs.
Frequently Asked Questions (FAQs)
The main cost of an LLC in New Jersey is the $125 filing fee needed to file a certificate of formation with the Division of Revenue. However, you will have to pay a yearly fee of $75 to keep your business in good standing with the state of New Jersey. Depending on your business requirements, you may also incur some charges along the way.
The cost to start and run a New Jersey LLC business is not a one-time fee. An NJ LLC’s annual fees include annual report fees, and taxation charges among other services, depending on your business requirements.
ZenBuisness is the best NJ formation service for a small business owner who wants to form and run in the state. Their services are overall the cheapest and the best.
According to the most current federal data available, New Jersey has 766,323 small businesses. Of those 766,323 small businesses in New Jersey, 252,831 have employees.
You can register for a New Jersey Sales Tax Certificate of Authority online through the New Jersey Division of Revenue and Enterprise Services. To apply, you’ll need to provide certain information about your business, including but not limited to Business name, address, and contact information. Federal EIN number.
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- Njportal.com. (2023). State of New Jersey Online Annual Report. [online] Available at: https://www.njportal.com/DOR/AnnualReports/Business?sessionType=AnnualReport.