LLC in NJ: Everything You Need to Know
An LLC in NJ is the least complex business structure in the state, making it incredibly popular among entrepreneurs.3 min read
LLC in NJ
An LLC in NJ is the least complex business structure in the state, making it incredibly popular among entrepreneurs. LLCs possess a structure that is more flexible than that of C corporations and S corporations. Some of the perks that entrepreneurs who start LLCs enjoy are limited liability, pass-through taxes, and legal protection when it comes to personal assets.
Steps to Starting an LLC in New Jersey: Background
It is both easy and affordable to start an LLC in New Jersey. To properly register your business in New Jersey, you will need to take a few steps. These steps depend on the type of business you want to form.
If your business is a limited partnership, a limited liability company, a corporation, or another type of legal entity, you will need to file authorization or formation documents. On the other hand, you do not need to file authorization or formation documents for sole proprietors or general partnerships.
Businesses that will contract with a New Jersey public agency will need to provide a Business Registration Certificate to prove that they are registered with the state. Some examples of public agencies are local governments, state agencies, colleges and universities, casino licensees, and local school boards.
Just like most states, New Jersey has unique requirements for the formation of LLCs.
Before you start the registration process for the formation of an LLC in the state of New Jersey, you should know the basics of LLCs and their advantages. You should be certain that a limited liability company is a good business structure for your business.
Under the law in New Jersey, LLCs are treated just like sole proprietorships by the IRS when it comes to taxes. LLCs also enjoy ease of operation just like sole proprietorships. Another advantage of LLCs is that they protect the personal assets of the owner if the company runs into financial or legal issues.
LLCs in New Jersey enjoy many of the advantages of the corporations. However, LLC owners don't have to deal with the complexity of corporations or the record-keeping requirements.
Turnaround Time to Starting an LLC in New Jersey
One to three business days is the most common processing time for filing and documents. You can expedite the processing time for a fee. The expedited service will process your filing and documents within 24 hours.
Steps in Starting an LLC in New Jersey: Name Your LLC
The most important step in the formation of an LLC is naming the LLC. It is in your best interest to conduct plenty of research to make sure the name you select for your business is suitable and easy to search.
The name of your LLC needs to follow the naming guidelines in New Jersey. One of the guidelines is that the name should include the words "Limited Liability Company" or an abbreviation, such as LLC or L.L.C.
The name of your LLC must be distinguishable from all the other names for business entities in the database of the New Jersey Division of Revenue & Enterprise Services.
Some of the restricted words for the names of LLCs in New Jersey are as follows:
If you want to include these restricted words in the name of your LLC, you will need to file additional paperwork. In some cases, you may be asked to have an individual with a relevant license join your LLC before you are allowed to include the restricted word in the name.
You can reserve a name for your LLC in the state of New Jersey if you're not ready to form your LLC. All you need to do is fill out a paper form and mail it to the NJ Division of Revenue, Corporate Filing, PO Box 308, Trenton, NJ 08646. The name can be reserved for 120 days or six months by filing a UNRR-1, which is the Application for Reservation of Name.
Another option that you have is filing the application for name reservation at the Division of Revenue and Enterprise Services Central Forms Repository online or by mail.
No matter which method you choose to file the application, the application needs to include the name you want to reserve, the date, and the type of business. The application also needs to include the applicant's name, signature, title, and address. The fee for filing a name reservation application is $50.
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