These days forming an LLC is pretty easy. NJ is one of many states that allow you to do simple LLC formation on-line. Here are the basic steps in NJ LLC formation.
1. Choose a Business Name for Your NJ LLC
Under New Jersey law, an LLC name must contain the words “Limited Liability Company” or the abbreviation “L.L.C.”
Your LLC’s name must be distinguishable from the names of other business entities already on file with the New Jersey Division of Revenue. Names may be checked for availability by at the New Jersey Business Record Service business name database.
You may reserve a name for 120 days by filing an application for assignment of a name with the New Jersey Division of Revenue. The application must be filed by mail. The filing fee is $50.
2. Do a Public Records Filing
A New Jersey LLC is created by filing a Public Records Filing for New Business Entity with the New Jersey Department of Treasury, Division of Revenue. The filing must include: the LLC’s name and address; the name and address of the LLC’s registered agent; the LLC’s purpose; its dissolution date, if any; and the name and address of members or managers. The document may be completed and filed online at the New Jersey Division of Revenue Online Business Filing webpage, or a paper document may be filed by postal mail. The filing fee is $125.
3. Appoint a Registered Agent
Every New Jersey LLC must have an agent for service of process in the state. This is an individual or business entity that agrees to accept legal papers on the LLC’s behalf if it is sued. The registered agent may be a New Jersey resident or a foreign or domestic corporation authorized to do business in New Jersey. The registered agent must have a physical street address in New Jersey.
4. Prepare an Operating Agreement (Optional)
In NJ an LLC operating agreement is not required but is highly advisable. For help creating an LLC operating agreement, it is a good idea to consult an attorney as this is key legal document for your business.
5. Tax and Regulatory Requirements
Additional tax and regulatory requirements may apply to your LLC. These may include:
EIN: If your LLC has more than one member, it must obtain its own IRS Employer Identification Number (EIN), even if it has no employees. If you form a one-member LLC, you must obtain an EIN for it only if you elect to have it taxed as a “corporation” instead of a sole proprietorship (disregarded entity). You may obtain an EIN by completing an online EIN application on the IRS website. There is no filing fee.
Business Licenses: Depending on the nature of your business, the State of New Jersey may require that you either obtain a license, certification, or registration. For details, check the New Jersey Online License & Certification website.
State Tax Registration: All New Jersey and foreign LLCs authorized to do business in New Jersey must register with the New Jersey Division of Revenue, regardless of whether they plan on collecting sales tax or having employees. To register, file a Business Registration Application, Form NJ-REG with the Division of Revenue. The form may be filed online or by mail. The initial Public Records Filing should be submitted before filing the Application, and the Application filed within 60 days thereafter. New Jersey LLCs must pay an annual minimum state tax of $125 per member.
6. Annual Report Filings
All New Jersey LLCs and foreign LLCs authorized to do business in the state must file an annual report. The report must be filed each year on the anniversary month of the LLC’s formation or authorization to do business in New Jersey. The report must be filed online through the New Jersey Division of Revenue On-line Corporate Annual Report webpage. The filing fee is $50.
7. Foreign LLCs
To do business in New Jersey, all LLCs organized outside of the state must register with the New Jersey Division of Revenue. Foreign LLCs must appoint a registered agent for service of process physically located in New Jersey. To register, file a Public Records Filing for New Business Entity. The application may be filed online or by mail. The filing fee is $125. The application must be accompanied by a certificate of good standing or similar document from the LLC’s home state.
