LLC NJ Cost: LLC Filing Fees in New Jersey 2021 (Optional & Required)

Updated on - Written by

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 a step-by-step LLC formation in New Jersey and the general cost to form and run an LLC based on the state requirements. 

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 NJ LLC fees, we have broken down the charges under the following requirements.

New Jersey LLC Filing Fees

The main NJ LLC cost is the filing of the certificate of formation/public records filing 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 report income and losses to their individual tax return.  LLC members will also pay self-employment tax towards 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%, individual income tax ranges from 3.5% on income $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 Registration of Alternate Name (Form C-150G[2]). 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 state taxes, and hire employees. You can get an EIN for your New Jersey LLC for free from the IRS by applying online.

The Top 2 New Jersey LLC Services

ZenBusiness

One of the New Jersey LLC formation 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 deadline, licenses, statement of formation among others. The company also boasts a 1-day processing speed and great customer support.

How to Start an LLC in New Jersey 

  1. Name Your New Jersey LLC
  2. Choose Your Registered Agenttep
  3. File Articles of Organization
  4. Prepare an Operating Agreement
  5. Obtain an EIN
  6. File Annual Reports

Step 1: Name Your New Jersey LLC

The name of the LLC must be available for use in the state of New Jersey and meets other state requirements. For that reason, you need to conduct a thorough online name search on various business databases. 

Step 2: Choose Your Registered Agent

New Jersey’s LLCs are required to appoint registered agents that 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.

Step 3: 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 the form online and pay the required state filing fee. 

Step 4: 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. 

Step 5: 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 as hire employees in New Jersey. You can download an EIN form from the IRS website for free. 

Step 6: 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.  

Conclusion

New Jersey is not among the cheapest states to form an LLC but it is worth trying for a New Jersey-based business. Even though the state filing and annual report fees are average, their taxes are not friendly. 

However, if you operate your business in New Jersey, you may consider forming an LLC in the state rather than filing a foreign LLC in a cheaper state. 

Frequently Asked Questions

How much does an LLC cost in NJ?

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.

Is there a yearly fee for LLC NJ?

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, taxation charges among other services, depending on your business requirements.

What is the best NJ LLC formation service?

ZenBuisness is the best NJ formation service to a small business owner who wants to form and run in the state. Their services are overall the cheapest and the best.

How many small businesses are there in New Jersey today?

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.


+ 2 sources

  1. Njportal.com. (2021). State of New Jersey Online Annual Report. [online] Available at: https://www.njportal.com/DOR/AnnualReports/Business?sessionType=AnnualReport [Accessed 26 Jul. 2021].
  2. ‌STATE OF NEW JERSEY DIVISION OF REVENUE REGISTRATION OF ALTERNATE NAME FEE REQUIRED C-150G ____ Title 14A:2-2.1 (2) New Jersey Business Corporation Act ____ Title 42:2C-4 Limited Liability Company ____ Title 15A:2-2-3 (b) New Jersey Nonprofit Corporation Act ____ Title 42:2A-6 Limited Partnership. (n.d.). [online] . Available at: https://www.state.nj.us/treasury/revenue/dcr/pdforms/c150g.pdf [Accessed 26 Jul. 2021].

Written by:

Billy Graham

Fact check by:

Billy Graham is a Highly skilled copywriter/editor with over 8+ years of experience working for content mills, direct clients, and SEO marketing agencies alike. Possesses extensive expertise in crafting unique copy, exceeding editorial goals, and delivering first rate client focused service in results driven content production.Specialties include: iGaming, branded content, short-form to long-form copywriting, call-to-action, buying guides, how to – articles, product reviews and comparisons, copy editing, proofreading, complete QA and in-depth research.

Fact check by: