How to Start an LLC in New Jersey | Mid 2023 Update

Starting a Limited Liability Company (LLC) in New Jersey comes with many advantages, including flexible management structure, limited personal liability, and potential tax benefits. This article outlines the key steps to form an LLC in the Garden State, from choosing a distinctive name to maintaining compliance with state requirements. When you are done with this article, you will know how to start an LLC in New Jersey.

Whether you are looking to start this LLC to develop a family office the Familoff way, or if you are just looking to start a business, let this guide lead the way.

How to Start an LLC in New Jersey: Step-by-Step Guide

Creating a New Jersey LLC involves several essential steps to ensure compliance with state regulations. In this guide, you’ll find a detailed overview of the process for forming a New Jersey LLC, including choosing a name, appointing a registered agent, filing the Articles of Organization, creating an operating agreement, obtaining an EIN, complying with tax and regulatory requirements, maintaining your LLC, and outsourcing LLC creation.

Choose a Name for Your New Jersey LLC

The first step in forming an LLC is to choose a name. In New Jersey, the name must be unique and not easily confused with the name of any other entity registered in the state. The name must include the phrase “Limited Liability Company” or its abbreviations “LLC” or “L.L.C.”

You can check for name availability on the New Jersey Division of Revenue and Enterprise Services website. If the name is available, you can reserve it for 120 days by filing a Name Reservation form and paying a $50 fee.

Also, consider if a corresponding domain name is available if you plan to create a website for your business.

Appoint a Registered Agent in New Jersey

New Jersey law requires every LLC to designate a registered agent for service of process. This is a person or business entity authorized to receive legal documents and official mail on your LLC’s behalf. The registered agent must be a resident of New Jersey or a corporation authorized to do business in New Jersey.

File New Jersey LLC Articles of Organization

To officially create your LLC, you must file a Public Records Filing for New Business Entity with the New Jersey Division of Revenue and Enterprise Services. The filing must include:

  • The name and primary office address of your LLC
  • The name and address of your registered agent
  • The purpose of your LLC
  • The LLC’s dissolution date, if any
  • The name and signature of the authorized representative

The filing fee is $125. You can submit the form online or by mail.

Create an Operating Agreement for Your New Jersey LLC

Although New Jersey does not require LLCs to have an operating agreement, it is highly advisable to have one. This internal document outlines the ownership and operating procedures of your LLC. It can help to protect the company’s limited liability status, prevent financial and managerial misunderstandings, and ensure your business is governed by your own rules—not default state law.

Obtain an EIN for Your New Jersey LLC

An Employer Identification Number (EIN), or Federal Tax Identification Number, is like a social security number for your business. Your LLC needs an EIN to open a bank account, file federal and state taxes, and hire employees. You can obtain an EIN from the IRS for free.

Comply with New Jersey LLC Tax and Regulatory Requirements

Depending on your business activities and whether your LLC has employees, you may need to register for one or more forms of state tax:

  • Sales Tax: If your LLC sells goods to customers in New Jersey, you may need to register for a New Jersey Sales Tax Permit.
  • Employer Taxes: If your LLC has employees, you will need to register for Unemployment Insurance Tax and Employee Withholding Tax with the New Jersey Department of Labor and Workforce Development.
  • Corporate Income Tax: Unlike many other states, New Jersey requires LLCs to pay a minimum annual tax based on the number of members in the LLC.

All New Jersey LLCs are required to file an annual report with the Secretary of State to keep your business in good standing. The report is due by the end of the anniversary month of your LLC’s formation. The filing fee is $50.

Maintain Your New Jersey LLC

Ensuring the longevity of your LLC requires ongoing maintenance:

  • Business Records: New Jersey law requires LLCs to keep certain business records, including copies of all filed documents, a list of current members and managers, a copy of your operating agreement, and financial records.
  • New Jersey Employer Requirements: If your LLC has employees, you need to comply with employer requirements, which include withholding state income tax and paying unemployment insurance tax.
  • Insurance: Depending on the nature of your business, you may need insurance. General liability insurance can protect your LLC from lawsuits and unexpected liabilities. If you hire employees, workers’ compensation insurance may be required.

Starting an LLC involves legal and financial complexities. Consulting an attorney or a certified public accountant can be invaluable in ensuring your business is compliant with state regulations and structured optimally for tax purposes.

Outsourcing New Jersey LLC Creation

While forming a New Jersey LLC on your own is doable, many entrepreneurs choose to outsource the process to professional services such as LegalZoom, Incfile, or ZenBusiness. These services can simplify the LLC formation process and save you time, allowing you to focus on growing your business.

Outsourcing LLC creation offers several benefits:

  • Expertise: Professional services are well-versed in state requirements and can help you avoid common pitfalls and errors.
  • Convenience: They will handle the paperwork, filings, and interactions with the state on your behalf, ensuring all necessary steps are completed.
  • Registered agent services: Many LLC formation services also offer registered agent services, providing you with a reliable and experienced registered agent for your LLC.
  • Ongoing support: Most services offer ongoing support and assistance with maintaining your LLC, including compliance reminders and annual report filing.

When choosing an LLC formation service, compare pricing, features, and customer reviews to find the best fit for your needs. Keep in mind that the cost of using a professional service will be in addition to the state filing fees.

Final Thoughts on How to Start an LLC in New Jersey

Starting an LLC in New Jersey is a multifaceted process that requires careful attention to state requirements. With the potential benefits that an LLC structure offers, it’s an appealing option for entrepreneurs. Whether you’re a local entrepreneur or looking to expand into the Garden State, properly setting up your LLC is the cornerstone of a successful business. It’s always recommended to seek legal and financial counsel to make well-informed decisions for your enterprise.

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