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Learn more about starting an LLC in New Jersey
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by Swara Ahluwalia
Swara has over six years of writing experience in the software, manufacturing, and small business segments. When she ...
Legally reviewed by Allison DeSantis, J.D.
Allison is the Director of Product Counsel at LegalZoom, advising and providing leadership to internal teams on the d...
Updated on: December 7, 2024 · 14 min read
With some of America’s most educated and skilled workforce, close proximity to major cities, ports, and airports, and a supportive business environment, it’s no surprise that many aspiring business owners want to take advantage of all that New Jersey has to offer.
Forming a new business in New Jersey requires a few key steps, such as finding a legal and available business name, getting the correct licenses and permits, and appointing a registered agent. The steps below will help you start a New Jersey LLC and get confidently rolling on your business journey.
The formation of a limited liability company (LLC) in New Jersey is governed by the Revised Uniform Limited Liability Company Act. The procedure for registration and formation is as follows.
The journey to formation starts with selecting an available and legal business name. The New Jersey Division of Revenue and Enterprise Services (DORES), which is part of the Department of Treasury, requires the business name to be easily distinguishable from those already registered or reserved. For instance, The Good Butter and A Good Butter are considered deceptively similar business names.
New Jersey LLCs also have to meet the following naming requirements:
If you’ve found a unique business name that passes all the checks, grab it before it goes to someone else. If you’re not ready to form your LLC right away, the New Jersey Department of Treasury's business portal allows you to reserve the name for six months for $50.
In case you are struggling with finding a creative and catchy LLC name, LegalZoom has some tips on naming your business.
New Jersey law requires you to appoint a registered agent for your LLC. A registered agent is the person or entity authorized to receive service of process and other official legal documents and notices on behalf of your LLC.
The state allows you to be your own registered agent if you meet the following criteria:
While the duties and responsibilities of a registered agent sound quite straightforward, read why it’s best not to be your own registered agent.
The Internal Revenue Service (IRS) assigns a nine-digit Federal Employer Identification Number (EIN) to identify your New Jersey LLC for taxes. You can obtain your EIN by mail or online through the IRS website.
A federal employer identification number allows you to do the following:
Forgetting to secure your federal tax identification number can cause issues with filing taxes, which can result in additional fines.
The certificate of formation (commonly called articles of organization in other states) is a document that officially establishes your LLC by laying out basic information about it. This may be referred to the Public Records Filing on the New Jersey website.
Prepare your certificate of formation and file it with the New Jersey Division of Revenue & Enterprise Services Commission to register your New Jersey LLC properly. Though it sounds like a big job, it simply means filling out a relatively straightforward online form and submitting it. You must file your form at least 15 days prior to officially opening for business.
To prepare your certificate, you'll need the following information:
Once you file your certificate of formation, the Secretary of State will review the filing. If approved, your LLC becomes a legal business entity.
The state will issue you a digital certificate that confirms the LLC formally exists and is legal. This document is essential for next steps like securing business licenses and opening a business bank account.
An operating agreement is a document that outlines the way your LLC will conduct business.
While the Garden State doesn't require an LLC to have an operating agreement, it’s an important component that can help streamline management duties and settle disputes that may arise over finances and management interests.
Without an agreement in place, the New Jersey courts make determinations based on state law, not necessarily what is in the best interest of the LLC and its members.
The operating agreement can include, but is not limited to, the following:
All business entities operating in New Jersey must register for taxes and understand their financial obligations to the state—which could be to collect sales tax, and pay income/payroll taxes. You can’t skip this step, even if you don’t foresee yourself collecting New Jersey sales tax or hiring employees.
You can register for taxes online using Form NJ-REG. To complete it quickly and smoothly, have the following details ready:
After registering, you'll receive a Business Registration Certificate (BRC) and your New Jersey Tax ID. This Tax ID—which will be your EIN plus three digits—will be necessary to pay state taxes and get tax credits.
It’s highly likely that your business will be subject to other legal compliance requirements, like securing the right licenses and permits. You can check the New Jersey Business Licensing and Certification Guide to determine if your industry requires a particular license or permit. Proper licenses and permits not only ensure compliance with the state, but also show customers and employees (if any) that you are serious about safety.
Registering your LLC in New Jersey gives you a legal foundation to conduct business, but a few more housekeeping items still need your attention.
Even if you don't think you'll need a webpage, you should reserve the option of having one in the future by buying a domain that matches your LLC’s name. You can find available domain names via GoDaddy or Google Domains.
While you are registering a matching domain name, go ahead and find a matching social media handle as well to create a cohesive brand identity.
A dedicated business bank account for your New Jersey LLC is key to clean books and accurate financial health. Using your personal account for business transactions can get messy and make tax time even more challenging.
Mingling funds can also backfire if someone challenges your LLC's status. For instance, it may raise questions like, "Are you and your LLC truly separate entities if you use the same bank account?" A dedicated business bank account is another way to demonstrate to the courts that you and your LLC are separate entities.
New Jersey, because of its multiple specialty taxes and exemptions, has a complex tax structure. Below are some important tax considerations for New Jersey LLCs to help you plan your financials:
A tax consultant can advise you on current tax rates. Or, you can reach out to the New Jersey Treasury's Division of Taxes.
If you plan to hire employees, you need to Register with the New Jersey Department of Labor and Workforce Development. Study the state's labor laws or speak to an employer attorney to ensure your LLC complies with minimum wage, employment taxes, overtime, and workplace safety. Compliance minimizes the risk of legal battles and helps you establish credibility as a business owner.
Business insurance not only protects your business from unexpected liabilities and lawsuits, but it also demonstrates your professionalism.
Here are some common types of business insurance you should consider:
While not required, a certificate of good standing is an excellent way to show customers and others that you’re a financially responsible and law-abiding business owner. It also helps build trustworthiness with vendors, investors, and financial lenders. You can get your business entity standing certificate online.
If you envision your business growing beyond New Jersey’s borders, you will need the legal authority to do so. Registering as a foreign LLC in other states where you intend to do business allows you to operate legally while protecting your assets across multiple jurisdictions.
A business attorney can explain the benefits and tax implications of growing your business outside New Jersey. They can also assist with the administrative load of forming a foreign LLC.
Get into the habit of keeping accurate and updated financial records, which consist of tracking income and expenses and storing all tax-related documents. Good bookkeeping simplifies tax filings, audits, and overall business management. It may even give your business some tax savings.
If you don't have the bandwidth for bookkeeping and would feel better if a professional handled it, you can check out LZ Books, LegalZoom’s bookkeeping service.
New Jersey LLCs need to stay in compliance with the state, and filing an annual report is an important step in doing this. The annual report is a yearly status check that confirms or updates the state on your business's latest information.
All registered LLCs must file an annual report online through the state’s Annual Reports and Change Services. The filing fee is $75, and the report is due on the last day of your anniversary month. Let’s say your business formation date is June 15, 2024. Your annual report due dates will be June 30, 2025, June 30, 2026, and so forth.
Expect to pay between $500–$2,000 to form a New Jersey LLC. Here’s an itemized list of factors you need to consider:
There may be additional costs if you decide to hire legal help for the formation process.
Starting a new business is exciting, and while the process appears simple, there are a lot of details to keep track of. If you are someone who wants to get everything right, it's worthwhile to check out LegalZoom's Business Formation Services.
We can handle much of the paperwork, including running a name check and filing the necessary forms for the New Jersey state fee. Our assistance to small business owners goes beyond just filing—for instance, we provide new business owners a free consultation with a small business specialist who will walk you through common tax concerns and explain which deductions can apply to your new business entity.
Our Pro package, priced at $249+ state filing fees, includes a customized operating agreement, one year of free bookkeeping tools, and access to our contract library of lawyer-approved, customizable legal documents.
An LLC separates you, personally, from the business, protecting your personal assets from business obligations while providing a strong foundation for operations.
A registered LLC also makes it possible for you to obtain permits or licenses necessary to operate your business, register your business with the state's tax agency, open a business bank account, and protect your name and logo with a trademark.
The state doesn’t require a separate business license, but your city or county might. Also, depending on your industry, you may need to acquire other licenses and permits, like professional or occupational licenses, if you provide services like accounting. Save time and use LegalZoom’s Business License Lookup to identify the required licenses and permits for your LLC.
You can expect the entire LLC formation process, from selecting a name to filing the certificate of formation, to take between seven business days to a few weeks. A lot depends on how well-prepared you are and how quickly the state processes your documents. Currently, the state has a one-day turnaround for the certificate of formation.
Oh no! Did you realize that you misspelled a member’s name after you received the approved Certificate of Authority and registered for taxes? Don’t panic. The NJ Division of Revenue & Enterprise Services makes it easy for you to correct errors through their Business Charter Amendment Service. There is a $100 amendment fee.
The procedure to dissolve your New Jersey LLC requires you to go to the Department of the Treasury’s Annual Reports and Services page and select “Close a business.” Keep your 10-digit business entity number and formation date handy. Next, cancel your tax registrations using the Registration Change Service option. The last step is to pay the state taxes for your final year in business.
Rudri Bhatt Patel contributed to this article.
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