Here are the steps you need to take to start a limited liability company (LLC) in New Jersey.
A specify liability company ( LLC for light ) is a way to legally social organization a occupation. It combines the limited indebtedness of a corporation with the flexibility and miss of formalities provided by a partnership or sole proprietorship. Any business owner who seeks to limit his or her personal indebtedness for business debts and lawsuits should consider forming an LLC .
here are the steps you need to take to form an LLC in New Jersey. For more information on how to form an LLC in any state, see Nolo ‘s article How to Form an LLC .
1. Choose a Name for Your LLC
Under New Jersey jurisprudence, an LLC name must contain the words “ limited Liability Company ” or the abbreviation “ L.L.C. ” Your LLC ‘s name must be distinct from the names of other business entities already on file with the New Jersey Division of Revenue & Enterprise Services. Names may be checked for handiness by at the New Jersey Business Record Service business name database.
You may reserve a name for 120 days by filing an application for Reservation of Name ( UNRR-1 ) with the New Jersey Division of Revenue & Enterprise Services. The application must be filed on-line at New Jersey ‘s Business Charter Amendment Service web site. The charge tip is $ 50 .
Using an Alternate Name
You do n’t have to use your LLC ‘s official legal name registered in your public Records Filing when you do commercial enterprise out in the real earth. rather, you can use an alternate name. In most states, this is called an assume name, assumed clientele name, “ DBA ” ( short for doing commercial enterprise as ), or trade list. To do indeed in New Jersey, you must register your appoint with the New Jersey Division of Revenue & Enterprise Services. You register by filing a registration of Alternate Name. You may register on-line or file the phase by mail. The registration of Alternate Name ( Form C-150G ) is available in the Complete Business Registration Packet. The filing tip is $ 50. The registration is good for five years. For more on read business names, see Nolo ‘s article How to Register a Business name .
2. Appoint a Registered Agent
Every New Jersey LLC must have an agent for servicing of process in the state. This is an person or business entity that agrees to accept legal papers on the LLC ‘s behalf if it is sued. The register agentive role may be a New Jersey resident or a foreign or domestic corporation authorized to do business in New Jersey. The record agentive role must have a forcible street address in New Jersey .
3. Complete the 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 & Enterprise Services. The filing must include :
- the LLC’s name
- the New Jersey three letter code for domestic LLCs–“LLC”
- the LLC’s business purpose
- the LLC’s dissolution date, if any
- the name and address of the LLC’s registered agent, and
- the signature of any authorized representative.
The Division of Revenue has a preprinted form on its web site that you can complete and file by postal mail or fax. alternatively, you may file on-line through the Division of Revenue Business Formation web portal. The filing tip is $ 125. You must pay an extra $ 3.50 if you file on-line and pay by credit calling card .
4. Prepare an Operating Agreement
An LLC operating agreement is not required in New Jersey, but is highly advisable. This is an inner document that establishes how your LLC will be run. It sets out the rights and responsibilities of the members and managers, including how the LLC will be managed. It can besides help preserve your limit liability by showing that your LLC is rightfully a branch business entity. In the absence of an engage agreement, state LLC law will govern how your LLC operates .
For aid creating an LLC operate agreement, see Form Your own limited Liability Company, by Anthony Mancuso ( Nolo ) or use Nolo ‘s Online LLC. If an engage agreement is created, it need not be filed with the public records filing document creating the LLC .
All of the paperwork and procedural steps to start a limited liability company can be done on-line using Nolo ‘s Online LLC Formation service.
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5. Comply With Tax and Regulatory Requirements
extra tax and regulative requirements may apply to your LLC. These may include :
EIN: If your LLC has more than one penis, it must obtain its own IRS Employer Identification Number ( EIN ), evening if it has no employees. If you form a uninominal LLC, you must obtain an EIN for it alone if it will have employees or you elect to have it taxed as a pot rather of a sole proprietorship ( dismiss entity ). You may obtain an EIN by completing an on-line EIN lotion on the IRS web site. There is no file fee .
Business Licenses: Depending on the nature of your business, the State of New Jersey may require that you either obtain a license, documentation, or registration. For details, check the New Jersey Online License & Certification web site. Your LLC may besides need to obtain a local business license from the city or county. For local licenses, check with the salesclerk for the city or town where the LLC ‘s basal rate of business is located ( or county if it is in an unincorporated area ). For more information, see How to Get a Small Business License in New Jersey .
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 on-line 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 minimal state tax of $ 125 per member. For more information, see New Jersey LLC Annual Filing Requirements .
6. File Annual Reports
All New Jersey LLCs and extraneous LLCs authorized to do business in the state must file an annual report. The report must be filed each class on the anniversary month of the LLC ‘s formation or authorization to do occupation in New Jersey. The report must be filed online through the New Jersey Division of Revenue Annuals and Change Services web page. The file fee is $ 50. For more information, see New Jersey LLC Annual Filing Requirements .
Should I form a New Jersey LLC? If you are merely starting your business or have already been operating as a exclusive owner, you should consider forming an LLC. LLCs limit an owner ‘s personal indebtedness for occupation debts and lawsuits and offer a lot of flexibility when it comes to ownership, management, and taxation of the business. To learn more about LLCs and decide if it is the right business structure for you, see What is a limited Liability Company ( LLC ) ?
How do I know if my LLC name is available? It is significant to make certain that your LLC ‘s name is distinguishable from the names of other existing businesses on charge with the New Jersey Division of Revenue & Enterprise Services. You can conduct a name search for dislodge on the New Jersey Business Record Service website to make sure your proposed name is available .
How much does it cost to form an LLC in New Jersey?
- The New Jersey Division of Revenue charges a $125 filing fee to complete the public records filing. You will also be charged $3.50 if you pay by credit card when filing online.
- It will cost $50 to file a name reservation application, if you wish to reserve your LLC name prior to filing.
Filing yourself is much the cheapest option, but completing all of the forms and filing them yourself can be complicated. Hiring a lawyer is another option, but will often cost you hundreds, if not thousands, of dollars in the process. Nolo ‘s Online LLC formation service can complete all of the paperwork and filings for you, with packages starting at precisely $ 79.00 .
Do I need an operating agreement for my New Jersey LLC? New Jersey does not require LLCs to have operate agreements, but it is highly advisable to have one. An function agreement will help protect your circumscribed liability condition, prevent fiscal and managerial misunderstandings, and ensure that you decide on the rules governing your clientele alternatively of state law by default. For more data, see The LLC Operating Agreement.
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Can foreign LLCs do business in New Jersey? To do commercial enterprise 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 agentive role 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 by mail or on-line through the Division of Revenue Business Formation web portal vein. The charge fee is $ 125. You must pay an extra $ 3.50 if you file on-line and pay by citation menu. The application must be accompanied by a certificate of good standing or similar document from the LLC ‘s home state .
Can I form a professional LLC in New Jersey? If you provide a accredited professional service in New Jersey and want to form an LLC, you will be required to form a professional LLC ( PLLC ). Examples of master services include architects, attorneys, dentists, certified public accountants, and more. broadly, if you provide a serve that requires you to obtain a New Jersey country license before practice, then you are a professional service. Each penis of the company must be licensed in order to form a PLLC. To learn more about forming a New Jersey PLLC, see our article, How to Form a Professional LLC in New Jersey .
How do I dissolve my LLC when I’m done? If you reach the point where it is time to close your occupation and end all operations, then you will want to properly dissolve your LLC to limit your indebtedness for lawsuits and government fees. Learn about the steps you will need to take in How to Dissolve an LLC in New Jersey .