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Need to form an LLC in New Jersey? Forming an LLC is a great way to go into business. The problem is that different states can have their own rules and regulations around forming a Limited Liability Company (LLC). Always check ahead of time to see what the process is for you. We’ve made things simpler for anyone looking to form an LLC in New Jersey in particular by putting together a complete step-by-step guide on how to get it done.
Step 1: Name the LLC
The first order of business, so to speak, is to name the LLC. You need to choose a unique name that is different from other companies registered in the Division of Revenue and Enterprise Services in New Jersey. It’s easy enough to check the name against the database. Just head to the New Jersey Business Record Service Database and search for the name you are considering. If you don’t get any hits, then you’re good to go.
Thought of the ideal name and want to reserve it? It takes time to set up a business, and someone could steal your name while you fill out the paperwork. For just $50, you can reserve the name for 120 days with the Division of Revenue and Enterprise Services. Other states also allow you to reserve the name for a business, but different states have their own rules on the fee and how long the reservation lasts. You can reserve your business name by submitting an Application for Reservation of Name (Form UNRR-1).
The name of your company must comply with the naming regulations of New Jersey. That means that it has to end with either “Limited Liability Company,” “LLC,” or “L.L.C.” Some words are also restricted and can’t be used as part of the name for the LLC. For New Jersey, those words are “District of Columbia/D.C”, “Trust”, “Underwriters”, “Realtor”, “Blind”, “Funeral Homes”, “Cemetery”, “Handicapped”, “Urban Renewal”, “Postal”, “Metropolitan”, “Little League”, “Olympic”, and “Olympia”.
Step 2: Choose a New Jersey Registered Agent
The State of New Jersey regulates that LLCs need a registered agent. The registered agent is used for the service of process. You need to have an entity that accepts legal papers on your behalf should your company be sued for any reason.
This registered agent can be any individual provided; they are over eighteen years of age and agrees to be the agent. It can also be a business in good standing within New Jersey that agrees to be the agent. There are businesses set up to be dedicated registered agents for companies. They have all the experience and knowledge needed to serve this purpose.
Step Three: Find the Articles of Formation for New Jersey
To officially form an LLC within the state of New Jersey, you have to file Public Records Filing for New Business Entity forms. The forms are submitted to the Office of the Treasury, Division of Revenue and Enterprise Services. You can submit these forms online through the Division of Revenue Business Formation webpage along with a fee for $125. The price is dropped to $75 for domesticated non-profit LLCs. Here’s what you’ll need to complete the form;
- The name and address of the LLC
- The type of business
- The name and address of the registered agent for the company – including their email address if registering online
- A Good Standing Certificate for your home state (only applies to foreign entities)
- A Credit Check or eCheck
- The names and addresses of managers and members as applicable
Step Four: Register the Business for Tax Filings
You will need to register with the New Jersey Division of Revenue and Enterprise Services for business entity and tax filings within 60 days of forming the LLC. This assigns your business a tax identification number for New Jersey, which you’ll need to file notices and returns. This can be done online, or you can register through the postal service. Please note that you need to register your business whether or not you plan on collecting sales tax or hiring employees. New Jersey LLCs have to pay an annual state tax minimum of $125 per member.
Step Five: Create the Operating Agreement
You should consider putting together an operating agreement for the LLC. While these operating agreements aren’t necessarily required by New Jersey state, having one in place does lay the groundwork for your company’s success. You don’t have to file your operating agreement with the state, but it still helps to ensure the future success of your business.
Step Six: Apply for an EIN and Review Tax Requirements
You need to register an Employer Identification Number (EIN) with the IRS unless your business is a single-member LLC, and there are no employees. You can get an EIN easily by filling out the online form on the IRS website.
Other Considerations for New Jersey LLC
If you are a foreign LLC – also known as an out-of-state LLC – that seeks to do business in New Jersey, then you have to follow all of the above steps and a few more.
The key difference with a foreign LLC is that you need to make the LLC legal to operate in the state. You do that by filling the Public Records Filing for New Business Entity form. The paperwork can be filed online through the Division of Revenue Business Formation website or through the mail. Either way, there’s a filing fee of $125 to pay.
You should also include a certificate of good standing from your home state as part of your paperwork.
Your business may require a federal, local, or state business license depending on the location and the type of business in question. For more information, check the New Jersey License and Certification webpage. From there, you can see which business licenses – if any – you will require and apply for them.
As business permits and licenses are issued at every level of government – local, state, and federal – and for all kinds of reasons (building, health, signage, etc.), you should always do your due diligence when finding out which permits and licenses you require. There are professional services you can hire that will help with this.