How to Start an LLC in New Jersey

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. 

 

How to get a New Jersey LLC in 6 steps

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.

Step 1: Name your New Jersey LLC

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: 

• Have an entity designator, such as “LLC,” “Ltd.,”, “Limited”, or “limited liability company.”
• Do not impersonate or insinuate association with a government agency, using words like State Department, CIA, FBI, or New Jersey Department of Treasury. 
• Avoid certain restricted words such as bank, lawyer, attorney, or credit union—these require approval and appropriate permits.
• Do not use derogatory, racial, or offensive terms.

Reserve a business name

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. 

Step 2: Choose your registered agent

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:

• Are above 18 and a state resident
• Have a physical New Jersey address (P.O. boxes don't qualify)
• Are available to accept documents during normal business hours

While the duties and responsibilities of a registered agent sound quite straightforward, read why it’s best not to be your own registered agent. 

Step 3: Get your EIN 

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:

• File and manage taxes at the state and federal level
• Open a business bank account
• Hire employees and pay employment taxes
• Establish business credit and secure funding

Forgetting to secure your federal tax identification number can cause issues with filing taxes, which can result in additional fines.

Step 4: Prepare and file your certificate of formation

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:

• LLC’s legal name and address
• Member or manager names and addresses
• Registered agent information (including name, mailing address, and email address)
• Optional: Employer identification number (EIN)
• Optional: Your NAICS business code and a general statement explaining your business
• Duration, which may be perpetual
• LLC formation date (New Jersey allows you to set a date in the future)

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. 

Step 5: Create an operating agreement

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:

• LLC name and principal address
• Purpose of the business
• LLC business structure
• Membership ownership interests (if there is more than one member)
• Member duties, responsibilities, and voting rights (if applicable)
• How decisions will be made
• The way profits and losses will be divided
• Procedure for admitting new members, as well as outgoing members
• Management of the LLC
• Indemnification and liability clauses
• Succession and dissolution plans

Step 6: Register for taxes and New Jersey business licenses 

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:

• Your unique 10-digit business entity ID (It will be on your approved certificate of formation, or you can find it by running a business entity search)
• An EIN from IRS
• New Jersey state business code
• North America Industry Classification System (NAICS) code 
• Business mailing address 
• Estimated business start date

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.

Obtain NJ licenses and permits

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. 

Next steps after forming your LLC in New Jersey

Registering your LLC in New Jersey gives you a legal foundation to conduct business, but a few more housekeeping items still need your attention.

Register a domain name

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.

Open a business bank account

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.

Understand federal and state tax obligations

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: 

• Corporate business tax. LLC owners that elect to file taxes as a C corp are subject to this business tax. The tax rate varies based on income earned.
• Sales tax. If your LLC sells taxable goods or services, you must collect and report New Jersey Sales Tax. The current sales tax rate is 6.625%, but certain counties (for instance, Salem) have a reduced tax rate, while others (like Atlantic City) have a higher sales tax rate.
• Income tax. LLCs are considered pass-through entities by the IRS, and the owners report the profit and losses on their personal income tax filings. In New Jersey, personal income tax brackets vary between 1.4%-10.75%, depending on one's adjusted gross income and filing status.
• Self-employment taxes. Each LLC member must pay federal self-employment taxes of 15.3%, which includes Social Security and Medicare.
• Local taxes. Depending on your LLC's location, you may also be subject to local municipal taxes. These tax rates vary widely. So, it's important to check with a tax attorney or local authorities to identify applicable taxes.

A tax consultant can advise you on current tax rates. Or, you can reach out to the New Jersey Treasury's Division of Taxes.

Comply with New Jersey labor laws

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.

Purchase business insurance

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:

• General liability insurance
• Professional liability insurance (if you are a professional limited liability company)
• Commercial property insurance
• Product liability insurance
• Workers' compensation (required for all NJ businesses who hire employees, with exceptions for some businesses covered by federal programs)

Obtain a certificate of good standing

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. 

Consider a foreign LLC

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.   

Practice good bookkeeping

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.

Annual filing requirements for New Jersey LLCs

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. 

The cost of forming an LLC in New Jersey

Expect to pay between $500–$2,000 to form a New Jersey LLC. Here’s an itemized list of factors you need to consider: 

• Reserve a name. If you aren’t ready to file but have selected an LLC business name, you can pay $50 to reserve it. 
• Filing fees. The cost of filing the certificate of formation is $125. 
• Doing Business As (DBA). If you decide to run your limited liability company under a different name, you will have to pay $50 for an alternate business name with the New Jersey Division of Revenue & Enterprise Services. For instance, say your LLC's legal name is John Smith LLC. If you wish to run it as John’s Reads, you will need to apply for an alternate name.
• New Jersey partnership filing fee. If your LLC has more than one member, you may have to pay a partnership filing fee of $150 for each partner.
• Annual reports. Annual report filing fees are $75. 
• Registered agent costs. A professional registered agent service can cost between $50–$300, based on the services they provide.
• Business licenses and permits. The cost of each license and permit depends on what kind of license you need and jurisdiction. The cost of each license or permit ranges from $75–$1,000. 
• Business insurance costs. The exact cost of business insurance depends on industry and size. According to MoneyGeek, general business liability insurance for an LLC in New Jersey is around $89 per month.

There may be additional costs if you decide to hire legal help for the formation process. 

How to start your LLC in New Jersey with LegalZoom

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.

FAQs

What are the benefits of registering an LLC in NJ?

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. 

Do I need a business license for my NJ LLC?

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.

How long does it take to register an LLC in New Jersey

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.

How do I correct filing errors in New Jersey?

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. 

How do I dissolve a NJ LLC?

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.