NJ LLC Tax Filing Requirements: Everything You Need to Know
NJ LLC tax filing requirements include filing an annual report, paying state taxes, and obtaining a federal tax identification number (EIN).3 min read
New Jersey LLC Fees and Filings
- Annual Report: You mustfile an annual report every year in the month when the LLC was formed. The filing fee for the annual report is $50.
- Taxes: You must pay state taxes, the details of which can be found on the State of New Jersey website.
- Federal Employer Identification Number (EIN): If your LLC hires employees, you will need to have an EIN. Even if you don't have employees, banks may ask for it at the time of opening a bank account for your company.
- State Tax Identification Number: You don't need a state tax identification number for your New Jersey LLC.
NJ LLC With No Activity: Is a Tax Return Required?
Yes, even if your LLC has no activity, you must file an income tax return if you've obtained an EIN for your business. When you've got an EIN, the IRS looks for the tax return of your business. In the case of a single-member LLC, you can file Schedule C showing LLC information only.
If you have shut down the business, file an income tax return showing no activity, and tick the "final return" box, so the IRS knows your company will not be filing any tax returns in the future. Additionally, visit the New Jersey taxing authority to find out the state requirements for closing a business.
If you haven't shut down the business and plan to restart the operations, you must continue filing your business tax returns until you close the business and submit a final return. You can file a zero return, i.e., a return showing no activity.
If you stop filing tax returns without reporting the closure of your business, you are likely to receive notices and may also incur penalties.
Annual Filing Requirements for a New Jersey LLC
A New Jersey LLC must prepare and file the following documents at the state level:
- A New Jersey limited liability company must file an annual report online through the DOR's annual report website.
- To access the online annual return form, you must enter your LLC's entity number (issued by the state) and the date of organization.
- The annual report requires very little information, such as the address of the registered office and the name of the statutory agent.
- You must pay a filing fee of $50.
State Business Tax:
For the purpose of federal income tax, an LLC is treated as a pass-through entity. Therefore, the company does not pay any taxes; the individual members are responsible for reporting the business income in their personal tax returns. Although some states levy a separate tax on limited liability companies for allowing them to do business in the state, New Jersey does not have any such tax for LLCs.
However, sometimes, LLC owners choose to have a tax treatment such as a corporation by filing Form 2553 with the Internal Revenue Service. In such cases, the LLC must file a separate tax return. Many states, including New Jersey, levy a state-level income tax on corporations. In New Jersey, this tax is known as Corporation Business Tax (CBT). If you have chosen to pay income tax as a corporation, you must pay the corporation business tax.
State Employer Taxes:
If your LLC has employees, you must pay employer taxes. Some of the employer taxes are paid to the IRS, but in New Jersey, you must pay these taxes to the state as well.
- Register your LLC with NJ Department of Treasury (DOT).
- Withhold income tax from your employees, and submit it to the DOT on a regular basis (every month, every quarter, etc.).
- You may also have to register for state unemployment insurance taxes and file contribution report every quarter. You can file this report either online or electronically.
If you sell goods in New Jersey, you must collect and submit sales tax to the state.
- Register your LLC with the concerned division of DOT (either online or by mail).
- At the time of registration, request for a certificate of authority for collecting sales tax.
- File your sales tax return every month or quarter.
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