LLC in NJ – How to Form an LLC in New Jersey [5 Easy Steps]

Forming an LLC (Limited Liability Company) in New Jersey is easy and affordable. The following are few procedural steps on how to start an LLC in New Jersey. LLCs can be formed in two ways, domestic and/or foreign. If you are planning to set up an LLC in states other than New Jersey, visit How to Start an LLC.

New Jersey LLC

How to Start a New Jersey LLC

Suppose you’re planning to invest in some profitable business or maybe about to set up your business in New Jersey. In that case, forming an LLC in New Jersey is the simplest option for you. For a business owner having an LLC is better as it reduces the personal liability for company or business debt.

An LLC or a Limited Liability Company a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. This section gives you a step-by-step guide on How to Start an LLC in New Jersey. 

Step 1: Decide a Name for Your LLC

name llc

If you are to start an LLC in New Jersey, the first thing you do is decide on a business or company name, and how to name your LLC may be tricky. Thus, you have the option to choose a name that complies with the New Jersey business naming requirements. It must also be easily searchable for potential clients. Here is a step-by-step guide to follow when naming your New Jersey LLC. 

Why do you need a proper business name?

If you want your LLC to have special identification, your company name is essential. However, many people face lots of issues by avoiding focus on choosing a business name for their LLC business formation filings.

Because of this, here are some of the major benefits of choosing the best LLC corporate names.

  • To help establish a company’s presence in the market, a proper business entity type will help you. This also creates a new identity that will resemble your LLC.
  • After you’ve properly chosen the name for your LLC, you will have no problems finishing the registration process.
  • You can only get the EIN number when you have your name registration certificate with you.
What are the requirements when deciding a name for your LLC?

 name search is vital to make sure your business’ name is unique. Check the availability of your name with Business Entity Search, the business name database, on the New Jersey Secretary of State’s website. Reserve the name by completing the Name Reservation Request Form for Domestic Entities.  

  • Don’t include words that could confuse people about your company. Words like ‘treasury, state department.’
  • You should also avoid restricted words like ‘bank, attorney, university,’ because they may require a lawyer and more paperwork.
  • As for a business website and your URL name, check if your name is still available for domain use with NameCheap.
Reserve a business domain

Even if you don’t have plans to set up a website today, it will help if you buy a domain to avoid others from using your name for their website, so do visit NameCheap for your domain name and Kinsta for web hosting.

If you have decided on your URL name and have reserved it, set up a professional email account with Google GSuite.  

Step 2: Assign a Registered Agent in New Jersey

get registered agent

A registered agent, or business entity, is a person that will act or work on your behalf. This person or business will receive significant tax forms, legal forms, formation documents, any internal document, a notice of lawsuits, and other official government correspondence in New Jersey. Choosing a New Jersey-registered agent for service of process for your LLC is required. 

Make sure your registered agents are residents of New Jersey having a physical street address. It could also be a business with a principal business address in the state. Here are the recommended agents and employees for you:

LLC Service

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These five LLC formation services are recommended agents’ registered services as they are authorized to conduct business in New Jersey. Compare them to check the best yet cheapest option for you. Besides, these professional service providers can guarantee you professional service to their potential customers because they have been in the business for years. 

Step 3: File Certificate of Formation in New Jersey

file formation certificate

A Certificate of Name Reservation is needed to file a Certificate of Formation, as other states call it. You need to make reports of this certificate with the New Jersey Secretary of State, which costs $125. You may file them online or by mail. 

This Certificate of Formation is a legal document needed to form your business officially. It will indicate details about your LLC in New Jersey, like if it is a member-managed or managers-managed. LLCs with employees can check the New Jersey government portal for the guidelines available to hire employees. 

Before you start filings, you must already have your LLC name and registered agents or employees. You will attach a copy of your Name Reservation Certificate along with a list of the services that your New Jersey LLC will offer.

How to File Online

Go to the Secretary of State Online Service. Select “non-subscriber.” Fill out the online form. The website will alert you if your county does not support online filings after selecting your principal county.

How to File by Mail

If you prefer filing real-life forms for your Indiana LLC registration, then you can download the New Jersey Limited Company Certificate of Formation. Read the form thoroughly and fill it out. It will have to fill, among others,  your name, city, state, zip code, and signature. 

Step 4: Register Business for Tax & Employer Purposes

Eery LLC in New Jersey must register with the New Jersey Division of Revenue and Enterprise Services within 60 days of LLC formation. With this, your business can receive a New Jersey tax identification number, allowing you to receive returns and notices. You can do this either online or by mail

Register for Tax and Employer Purposes

Mail to:
New Jersey Division of Revenue
P.O. Box 252 Trenton,
NJ 08646

Submit In-Person:
New Jersey Division of Revenue
33 West State Street Trenton,
NJ 08608

Fee: $125

Step 5: Create Your New Jersey LLC Operating Agreement

create operating agreement

A liability company operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts. 

Starting an LLC in New Jersey does not require you to have a limited liability operating agreement, but it is ideal to have one that contains all your details of business operation.

Step 6: Filing a New Jersey LLC EIN

The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify types of business for tax purposes. It is like a Social Security number dedicated to a business. 

It is also called a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN). You will need this number for tax filing and to determine tax classification options.

Mail to:

Internal Revenue Service

Attn: EIN Operation

Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

After Starting your New Jersey LLC 

After forming your LLC, there are still some things that you will need. Take note of the following:

  • Get a company business account
  • File New Jersey business permits & licenses
  • Get liability for business insurance with coverage for employees
  • File a New Jersey LLC annual report or biennial report
  • Already existing LLCs that wish to operate in New Jersey must register as a foreign New Jersey LLC.

This page has provided you with steps to LLC formation and filing processes. You now have to remember the upcoming filing deadline and filing fee or filing costs, including fees for late filings to make sure your LLC is up-to-date.

Why an LLC in New Jersey

If you look at the top options for establishing a new business, New Jersey’s name will be in the top few options. The reason behind this is the lucrative offerings that the government of the state provides. Business funding options, reductions in tax liabilities, minimum state tax, and line of credit are some of the benefits NJ offers. New Jersey has some leveraging benefits from others that are discussed below. So, let’s have a look.

Well Educated Labor Market 

It is an absolute fact that when business people start an LLC in New Jersey, then the opportunity for employment increases in that state. According to New Jersey universities’ research and data, the number of degrees awarded in the state is the highest, and no other state has reached that number. The workforce that an LLC will get in New Jersey is well educated, which is better for LLC growth.

Such a workforce will have a higher knowledge of modern resources and a comprehensive understanding of business and are prepared to face the industry from the time of universities.

Sales and Use Tax Exemption Program

The STX program is one of the significant advantages that every New Jersey LLC enjoys. It is a sales tax exemption program in which you can enroll the business, those who are making a renovation or construction on their property to expand the company. LLCs buying property for their organization is also eligible for STX Program. It will be valid until the LLC is buying building material, furniture, furnishings, fixture, etc., material for their company. Once it is all done, then the exemption will be removed.

Premier Lender Program 

Starting a business is a huge task, and if there is a limitation of funding, then it seems impossible for a person to proceed. But in the Premier Lender Program started for LLC in New Jersey, a person can hold the helping hand of the new Jersey government. It is a financing option provided to the businesses for which the cost is meager. One only has to show an asset, and against that, they can receive a loan of amount $2 million or, in some cases, up to $1.5 million depending on the asset and business plan.

Best Businesses in New Jersey

Before you form an LLC in New Jersey, you should gain complete knowledge regarding the state. You should know the top businesses operating in the state and how much they contribute to the state economy? If you already have the information, it is good; otherwise, you must read the information below.

Pharmaceuticals

The life sciences industry is growing ever since in the 4th smallest state of the USA. The sector consists of 3 sub-sectors: Pharma itself, the research sector of biotechnology, and the development of medicine. The development of the industry is perfectly depicted by the 118.000 employees that are working in the industry.

Some of the big bulls of the sector in New Jersey state are Johnson and Johnson, Bayer Healthcare, and 21 other Fortune 500 companies. The contribution of this sector is around $45 billion to state GDP.

Financial Services Business

With an Annual contribution of $31 billion, the sector has shown significant growth in the sector. Currently, 11,400 firms operate in the country that offers finance to new businesses, helping people in their financial chores like tax-paying and business returns and insurance companies.

The reason behind so many financial companies operating in New Jersey despite small size are cheap yet prime real estate, affordable cost of living, and a considerable low taxation amount business has to bear.

Transport and Logistics

The supporting sector of manufacturing has eventually become the most significant contributor to the state’s economy. The state’s road network is very dense, and the seaport is also the second-largest, making it a prime location for logistics. More and more e-commerce companies are opening their fulfillment centers in the state now, in which Amazon is also one. With the increasing demand for e-commerce, the contribution of this sector is now $20.42 billion.

Some small businesses that have worked well in the state are:-

  • Fulfillment business
  • Shipping company
  • Online resume writing

New Jersey LLC Formation Review

Time needed: 30 minutes.

 To recap, here are the easy steps again when forming an LLC in New Jersey. Click on the steps in this list to read the full detail.

  1. Name your New Jersey LLC

    The first thing you must do is to choose a company name, which should include the phrase “limited liability company,” or one of its abbreviations (LLC or L.L.C.).
    name llc

  2. Choose a registered agent

    In New Jersey, it is mandatory to select a registered agent for your LLC. You can check out our list of our 5 Best LLC Services in the United States.
    get registered agent

  3. File a formation certificate

    Filing a formation certificate is necessary when forming an LLC. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
    file formation certificate

  4. Register your business for tax and employer purposes

    You will need to register for business taxes, and the types of taxes you pay will vary according to the type of business you operate.
    Register for Tax and Employer Purposes

  5. Create operating agreement

    An operating agreement is not a strict requirement but something encouraged when you start an LLC.
    create operating agreement

  6. Get an EIN

    The Employer Identification Number (EIN), also called  Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
    get an ein

F.A.Qs

What is the difference between ‘domestic LLC’ and ‘foreign LLC’?

A “domestic LLC” is one that conducts business in a state where it was formed. Meanwhile, a “foreign LLC” is an existing LLC that extended business to another state.

What do I need for Domestic and Foreign LLCs?

For Domestic LLCs, it is vital to have a Certificate of Name Reservation and Certificate of Formation. For the foreign LLCs, you must have a Certificate of Good Standing.

Is the cost to form an LLC the same across states?

The cost to form an LLC varies per state.

Does an LLC need to use a DBA?

Seldom do L.L.C.s use D.B.A. or a ‘Doing Business As’ name nor a fictitious business name. However, if you want to have one, you make read more about DBAs here

Why are operating agreements important?

This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.

Is there anything else I should keep in mind when naming my LLC?

>Your name should have “L.L.C. or LLC” or the phrase “limited liability the business.” 
>Do not include words that could create confusion between your LLC and any government business. 
>Words like ‘bank, attorney, university’ are restricted as well. 
>Lastly, your name should distinguish from other limited liability corporations, limited partnerships, or registered limited liability partnerships.

Where can I file my LLC name?

Typically, you can file your LLC name online or by mail. Check with the state where you will set up your LLC name. Take note that the fees for business names may also vary per state.  

How can I know if my URL name is available?

As for a website and your URL name, check if your name is still available for URL use with NameCheap to see if your name is available as a web domain. Even if you don’t have plans to set up a website today, it will help if you buy a URL. Buying it can help to prevent others from getting your name; check out WPEngine, Kinsta, and GoDaddy for hosting and building your website. 

Can I mail the LLC Certificate of Formation to the Secretary of State?

No. Never mail these documents or payments to the Secretary of State directly. 

Why do I need an EIN?

The reason you might need an E.I.N. is that it would help for three reasons:
>Opening a business bank account
>Filing and managing federal and state taxes
>Hiring employees or agents

How do I get an EIN when I do not have a Social Security number?

You are not required a Social Security number when getting an EIN You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.

I already have an EIN for a sole proprietorship; what now? 

Note that an LLC is different from a sole proprietorship. If you already have an EIN for your sole proprietorship, the IRS will require you to get a new one when your convert to an LLC. 

Do foreign applicants need an SSN to get an EIN?

International EIN applicants do not need an SSN to get an EIN.

What is an IRS?

The IRS is the one that will issue your EIN. You can request an EIN from the IRS ONLINE or download the FORM, fill it out, and send it by mail or fax.

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