Creating an LLC in NJ: Everything You Need to Know
Creating an LLC in NJ involves filing an application with the New Jersey Department of Treasury.3 min read
Creating an LLC in NJ involves filing an application with the New Jersey Department of Treasury. All LLCs in New Jersey must subsequently file annual reports in the month the LLC was formed or authorized to do business.
What You'll Need to Create an LLC in New Jersey
- A name reservation fee of $50
- A filing fee of $125
- An IRS Employer Identification Number (EIN) for businesses with more than one employee
- The Articles of Organization
- The name and contact information of the company's registered agent
- The corporation's physical service address in New Jersey
- Necessary certification or license depending on the line of business
The process of creating an LLC in New Jersey roughly follows the following steps.
Step 1: Reserve a Name
To reserve a name, apply online or by postal mail using the UNRR-1 form and submit to the New Jersey Division of Revenue & Enterprise Services. It is mandatory for an LLC's name to have the words “Limited Liability Company.” The name should be easily distinguishable from other company names on the New Jersey Division of Revenue and Enterprise Services.
You can check the availability of a company name online. In order to use words like University and Bank in the company name, the state will require you to file extra paperwork, and you might need to consult a licensed professional. Words or abbreviations that would confuse the name of your LLC with a federal agency, like FBI, are prohibited. LLCs are free to do business under “alternative” or “fictitious” names as long as the company also registers such names.
Step 2: Public Records Filing
Make a Public Records Filing with the New Jersey Department of Treasury, Division of Revenue & Enterprise Services.
Step 3: File Your NJ-REG Application
File your NJ-REG Application and the Articles of Organization within 60 days of filing the initial Public Records Filing. You can file your application online or by mail. You will be charged a filing fee of $125, plus an additional $3.50 if you file online and pay by credit card. Include the following details about your company:
- The corporation's name
- The corporation's address
- The corporation's registered agent, a representative with a New Jersey street address tasked with receiving legal papers
- The corporation's purpose
- The corporation's dissolution date (optional)
- The names and addresses of the corporation's members and managers
An LLC operating agreement, though not a requirement in New Jersey, is highly recommended. The agreement sets forth the relationships, rights, duties, and, decision-making processes of the company's members. Companies without operating agreements are assumed to be operating under the New Jersey LLC statute.
Step 4 Get an EIN Number
If your LLC has employees or more than one member, it is required to have an Employer Identification Number or EIN. Filing for the EIN is free. Foreign companies in New Jersey are also required to register with the New Jersey Division of Revenue, except those that do not have a tax nexus. These companies file a paper on NJ-REG to obtain a Business Registration Certificate.
By default, Limited Liability Companies are classified as pass-through entities, but you can choose to be classified as a C-Corp or S-Corp. New Jersey law requires companies to register for Employee Withholding Tax and Unemployment Insurance on behalf of the employees.
The corporation might also be required to get a license or certification depending on your line of work. In addition, businesses dealing in taxable goods or services must register for New Jersey Sales Tax.
The same procedures outlined above apply for temporary registration for flea markets and seasonal businesses. Find details about creating a New Jersey LLC here.
How New Jersey LLCs Function
To conduct the first members' meeting, known as the organizational meeting, the company should have the filed articles of organization and operating agreement. New Jersey LLCs get the same benefits of ease of operations and tax treatment as a sole proprietorship as well as the protections afforded to corporations.
Your business may need a Certificate of Good Standing if you want to renew certain permits or if you want to form a foreign LLC elsewhere. A Certificate of Good Standing shows that the company was created legally and is well maintained.
Separate personal and business expenses by opening a business bank account and getting a business credit card. This is important for the protection of personal assets and maintaining proper accounting practices.
If you need help with creating an LLC in New Jersey, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.