Starting an LLC in New Jersey FAQs
Why Start an LLC in New Jersey?
If you’re in New Jersey, or planning to move your business to New Jersey, there are many great reasons for starting an LLC in New Jersey. Boasting over 860,000 small businesses, New Jersey is a highly business-friendly destination. Whether you’re an LLC or a corporation, New Jersey is a hub for reaching out to national and global markets.
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An LLC, or Limited Liability Company, is a type of private limited company in the United States, which is any type of business entity in private ownership. This means the company is owned by its founders and management and is therefore not beholden to shareholders. So what are the benefits of forming an LLC in New Jersey?
Compared to other business structures, LLCs have a relatively simple, flexible, low-cost structure that offers tax benefits and personal liability protection. See our ultimate guide for How to Start an LLC for a full breakdown of the advantages of LLCs and how they compare to other business structures.
So if you’ve ever wondered “How do I set up an LLC in New Jersey?” wonder no more. This simple guide for how to start an LLC in New Jersey shares all the important steps, requirements, state fees and costs you’ll need during the LLC setup process so you won’t feel lost along the way.
What are the Steps to Starting an LLC in New Jersey?
Starting an LLC in New Jersey may feel daunting, but we promise it’s not. There are 8 simple steps to creating an LLC in New Jersey:
(image source: https://www.state.nj.us/treasury/revenue/)
Step 1: Name Your New Jersey LLC
The first step to forming an LLC in New Jersey is to come up with a name that is not only distinct and memorable, but also one that is available and adheres to New Jersey’s naming rules.
Your LLC’s name cannot have the same name as an existing business in New Jersey, so do a quick lookup with the New Jersey Division of Revenue and Enterprise Services (DORES) or the New Jersey Secretary of State’s Business Record Service to ensure your intended name is not already taken.
If your name is available but you’re not quite ready to form your LLC in New Jersey yet, you can file an Application for Reservation of Name (UNRR-1) with DORES for $50, which reserves your name for 120 days. If you’re not ready to formally start your LLC at the end of that 120 days, you can file a UNRR-3 with DORES to renew your reservation.
Once you’ve established that your name is available, there are a few naming requirements for an LLC in New Jersey:
- The name of your business must include the words: Limited Liability Company, LLC, L.L.C., Ltd. Liability Co., Limited Liability Co., Ltd. Liability Company, or Limited Liability Company
- It must be distinguishable from the names of other LLCs, foreign LLCs, and current name reservations.
- It must not contain any word, phrase, abbreviation, or derivative that indicates or implies the LLC is organized for any purpose other than those permitted by its Certificate of Formation.
- Consult the DORES website for a full list of words that cannot be used in your LLC name.
Step 2: Designate a Registered Agent
If you want to form an LLC in New Jersey, you’ll need a registered agent. A Registered Agent acts as an intermediary for receiving official legal documents and passing them on to the LLC owner. All LLCs in the U.S. are legally required to designate a Registered Agent.
In New Jersey, your LLC’s Registered Agent must be an individual who is a resident of the state or who has the authority to conduct business in New Jersey. They must also maintain a street address in New Jersey (not a P.O. Box) and be available during regular business hours to receive official correspondence. Your Registered Agent can be an officer in your LLC, or you can hire an outside Registered Agent service provider.
Step 3: Obtain a New Jersey Business License
In order to register an LLC in New Jersey, you may need a business license and a permit to operate. Consult New Jersey’s Licensing & Certification Guide to determine if your industry requires one.
Step 4: File Articles of Organization (or similar document)
Once you have a name, a Registered Agent, a New Jersey mailing address, and potentially a business license, the next step to setting up an LLC in New Jersey is to submit an official business formation application, also known as Articles of Organization (or similar documents). In order to complete the Articles of Organization (or similar documents), you’ll need your:
- Business name and type
- Registered Agent information (including an email address to receive Registered Agent notifications)
- A Good Standing Certificate from your home state if your LLC is a foreign entity
- A credit card or eCheck
Filing an LLC in New Jersey comes with a $125 fee for domestic LLCs and foreign nonprofits, and a $75 fee for domestic nonprofits. Once your application is accepted, you’ll receive a certificate of formation.
See our Articles of Organization LLC Template to make sure you don’t miss anything.
Step 5: Receive a Certificate From the State
The next step for how to start an LLC in New Jersey is receiving the certificate of formation, which formally confirms the existence of your LLC in New Jersey. The state will mail this certificate to the New Jersey mailing address you provided within 7-10 working days of receiving your Articles of Organization (or similar documents).
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Step 6: Get an Employer Identification Number
The next step to starting an LLC in New Jersey is getting your tax ID number. The Internal Revenue Service (IRS) will assign you an Employer Identification Number (EIN) in order to identify your LLC for taxes.
An EIN, sometimes referred to as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN), is nine digits and enables an LLC to file and manage taxes at the state and federal level, open a business bank account, and hire employees. You can obtain an EIN for free via the IRS online portal.
Once you have an EIN, you must file a tax/employer registration form with DORES.
Step 7: Create an Operating Agreement
Creating an Operating Agreement is an essential step to opening an LLC in New Jersey. While it is not required by the state, it is recommended that you create one. An Operating Agreement is a written document that outlines and ensures that all members understand and agree to their designated rights and responsibilities. Without one, state law will determine how your LLC operates.
The agreement should include all relevant information relating to your LLC’s operations, such as:
- LLC’s name and principal address
- Duration of the LLC
- Name and address of the registered agent
- Articles of Organization (or similar document)
- Purpose of the business
- Members and their contribution
- Manner in which profits and losses will be distributed
- Process for adding or dismissing members
- Indemnification and liability clauses
- How the LLC will be managed
See our LLC Operating Agreement Template to make sure you’re including all the essentials. An attorney should be consulted for more complex operations.
Step 8: File a Statement of Information Annually
Now that you know how to apply for an LLC in New Jersey, you need to know how to maintain it. Once your LLC has been established, you’ll need to file a Statement of Information every year by the end of the anniversary month that your business was formed. This statement ensures that the state stays up to date on the contact information for your LLC. You can submit a Statement of Information online and there is a $75 filing fee.
You will need to know your LLC’s state-issued entity identification number — which can be found on the certificate that the state provides you after Articles of Organization (or similar documents) are filed — and the original date of incorporation to access the form. To complete the report, you will need the name of your LLC’s Registered Agent, your LLC’s address, the names of your LLC’s officers, and some Workers Compensation details.
NOTE: Filing Errors
Even if you do your due diligence and thoroughly research how to set up an LLC in New Jersey, mistakes still happen. It’s in your best interest to get it right the first time, of course, but in the event that you register an LLC in New Jersey and then discover an error in your paperwork, correct it immediately by filing a Certificate of Correction.
You must complete this paperwork in duplicate and mail it to NJ Division of Revenue, PO Box 308, Trenton, NJ 08646. There is a statutory fee of $10 for for-profit business and $50 for nonprofits.
What are the Costs of Starting an LLC in New Jersey?
How much does an LLC cost in New Jersey? The cost to form an LLC in New Jersey is pretty straightforward. Here’s a roundup of the costs we’ve discussed so far for how to create an LLC in New Jersey:
- Business Name Reservation filing fee: $50
- Articles of Organization filing fee – $125 for domestic LLCs and foreign nonprofits; $75 for domestic nonprofits
- Annual Statement of Information filing fee – $75
Does Collective Help with Starting an LLC in New Jersey?
See? That wasn’t so hard! You now know the steps for how to start an LLC in New Jersey.
If all the steps, forms, fees, and costs sound like too much work, don’t worry. Collective offers a smarter, more affordable way to get your LLC set up and running. We take care of your LLC formation, monthly bookkeeping, accounting, taxes, and more.
Start your LLC with Collective and find out how much you could save.