How to form an LLC in New Jersey
If you are interested in starting an LLC in the Garden State, you have good reason.
New Jersey has a highly educated population and ranks 3rd in fastest startup growth in the country.
Every state has slightly different requirements for forming an LLC.
Follow along closely to learn the required steps for creating your own
Limited Liability Company in the state of New Jersey.
There are two ways to form an LLC in New Jersey: You can form one yourself, or you can hire a service to do it for you.
Let’s start by looking at the six basic requirements to form an LLC in New Jersey on your own
1.Name your LLC.
You’ll need to choose a company name that complies with New Jersey naming requirements,
and do a name search on the State of New Jersey website to make sure the name isn’t already taken.
You should go ahead and register the URL for your business website and email as well.
2.Choose a registered agent.
New Jersey requires that you nominate a registered agent for your LLC, who is your business’s point of contact with the state.
The registered agent can be an individual within the company including yourself,
or you can hire a professional service authorized to do business in New Jersey.
3.File the Certificate of Formation.
To register your LLC, you will need to file the Certificate of Formation with the State of New Jersey.
This can be done online, by mail, or in-person.
When forming your LLC, it's a good time to consider whether your LLC will be member-managed or manager-managed.
Member-managed means all members of the LLC manage the company.
This is good for small organizations, where everyone is involved in day-to-day operations.
The second option is manager-managed, where individuals are appointed to manage the LLC.
This is appropriate for larger organizations, where not everyone is involved in the day-to-day affairs of the business.
4.Register your Business for Tax & Employer Purposes.
All LLCs in New Jersey are required to register with the New Jersey Division of Revenue and Enterprise Services
for business entity and tax filings within 60 days of formation.
This filing will make sure your business receives a New Jersey tax identification number,
allowing you to receive all proper returns and notices.
You can do this either online, or by mail.
5.Create an Operating Agreement.
You should also create an operating agreement to establish ownership terms and member roles.
This is an internal document for reference, and does not need to be filed with the state of New Jersey.
This foundational document is the core of your LLC, and will help you maintain your
organization, as well as further establish your LLC as a separate legal entity.
6.Obtain an EIN.
Lastly, then you’ll need to get an Employer Identification Number, or EIN, from the IRS.
Also known as a Federal Tax Identification Number, your EIN is like a social security
number for your LLC and is important for taxes and banking.
EIN’s are free of charge, and can be obtained from the IRS online or through the mail.
And with that, you will have formed a New Jersey LLC on your own.
Option 2. Hire a Professional Service
The second way to create a New Jersey LLC is to hire a professional service to create your LLC for you.
Hiring a professional service to file your forms and act as your registered agent for
the LLC will cost you an additional 50 to 150 dollars.
However, there are several benefits to working with a pro:
A hired registered agent helps with getting your reports filed on time, helps you stay
organized by keeping your business mail separate, and is available at all regular business hours
to accept official mail and legal papers on your LLC’s behalf.
A final and important additional benefit of using a service is privacy: a professional
service will provide a level of privacy by withholding your personal name and home address
from the LLC’s contact information.
There are many reasons you might not want your personal information easily accessible
and associated with your business - hiring a professional LLC formation service is an
easy way to accomplish this.
Now that you have seen the different requirements and ways you can form an LLC in New Jersey,
visit our site and take some time to research your options and establish a solid foundation
for your business activities.
Click on the links in the description below to research the top 5 professional formation services,
or get more information on how to form a New Jersey LLC on your own.
We offer a host of free templates and tools to help accelerate your small business,
from operating agreements to business plans - all free of charge.
Visit us at HowtostartanLLC.com