LLC Formation Nj: Everything You Need to Know
For LLC formation, NJ requires applicants to file Articles of Organization and pay a $125 fee. Starting an LLC in New Jersey may be different than in other states. Creating an LLC is one of the most effective ways to organize your business into a company. 3 min read
2. STEP 1: Name your LLC
3. STEP 2: Choose a Registered Agent
4. STEP 3: File the Articles of Organization
5. STEP 4: Create an Operating Agreement
6. STEP 5: Obtain an EIN
For LLC formation, NJ requires applicants to file Articles of Organization and pay a $125 fee. Starting an LLC in New Jersey may be different than in other states. Creating an LLC is one of the most effective ways to organize your business into a company.
Starting an LLC in New Jersey
To form an LLC in New Jersey, you must file Articles of Organization. This can be done online, by mail, or in-person. You will need to follow these steps to organize your LLC in the state of New Jersey:
- Register with the New Jersey Department of Treasury by filing the basic initiation forms.
- Pay the necessary fees.
- Research and review all naming and formation requirements.
After the formation process is completed, there are several essential goals to achieve:
- Obtain business licenses and permits.
- Register for state taxes.
- Get a business bank account.
STEP 1: Name your LLC
According to LLC naming requirements, it is important to consider the following while choosing the name for your business:
- The name of your entity must be different from other LLCs.
- The name of your entity must contain particular words mandatory for LLCs.
- If words such as "bank," "attorney," or "university" are added to an LLC's name, additional paperwork is required. A licensed individual such as a doctor or lawyer may have to be part of the company.
To be certain that an LLC name is not taken, a name search is available on the State of New Jersey website. The New Jersey Department of Treasury, Division of Revenue allows online name reservations for a $50 fee.
If a company is established outside of New Jersey, it is obligated to use the exact name used during formation documents in its place of the original establishment. For secondary purposes or for companies whose name is already taken, a "doing business as" (DBA) name is required. DBA names are available only to foreign or non-New Jersey businesses.
STEP 2: Choose a Registered Agent
A registered agent is essential to establish a New Jersey LLC. Your registered agent could be a person or business that is willing to address and accept legal documents on behalf of your limited liability company.
To serve as a Registered agent, a person or a company needs a street address operating in New Jersey and must be licensed to do business in New Jersey.
STEP 3: File the Articles of Organization
While filing the Articles of Organization for a domestic LLC, it is necessary to cover the following points:
- LLC name and principal business address
- Business type and purpose
- Name and address of registered agent
- Type of management (member-managed or manager-managed)
- Names, addresses, and signatures of members
- Completed business registration application
- Good Standing Certificate from your home state (only for foreign entities)
- Duplicate forms and payment for the filing fee
STEP 4: Create an Operating Agreement
As a legal document, an operating agreement summarizes the ownership and function of the LLC.
The registered agent keeps all the operating agreement on file if one is created. An operating agreement is not essential; however, it is a good idea to have an operating agreement in the state of New Jersey.
STEP 5: Obtain an EIN
If an LLC has more than one member, it must acquire an IRS Employer Identification Number (EIN), despite the fact that some LLCs have no employees at all. In cases when an LLC is a one-member entity, an EIN is necessary if the business plans to have future employees or if the LLC elects to be taxed as a corporation rather than a sole proprietorship.
The Employer Identification Number (EIN) or Federal Tax Identification Number serves to identify a business entity, and it is required to file state and federal taxes. Also, in order to open a business checking account, an EIN is required by all financial institutions in the United States.
After establishing the company, a business owner can get an EIN for free from the IRS, and it is possible to do so in two ways:
- Applying online (https://sa.www4.irs.gov/modiein/individual/index.jsp)
- Printing and mailing the appropriate form (http://www.irs.gov/pub/irs-pdf/fss4.pdf)
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