New Jersey is an excellent place for business, with a skilled workforce and sound resources. Knowing the state’s rules is brilliant if you’re considering starting your LLC here. Here’s what you need to do.
Step 1: Name your New Jersey LLC
Step 2: Choose a Registered Agent
Step 3: File an Articles of Organization
Step 4: Received a Certificate From the State
Step 5: Obtain an Operating Agreement
Step 6: Get an Employer Identification Number
Step 1: Name your New Jersey LLC
When you start your LLC, you must pick a name that follows New Jersey’s naming rules. Here are the main things to remember:
- Your name must include Limited Liability Company, LLC, or L.L.C.
- It must be unique compared to other businesses in the state. You can check on the Secretary of State’s website.
- Avoid using words reserved for government agencies (like the State Department or CIA). Some words (like bank or lawyer) may need extra paperwork.
For a complete list of rules, check New Jersey’s naming guidelines.
Additional Consideration:
Reserve your Name: To reserve your chosen LLC name in New Jersey, complete the Application for Reservation of Name (UNRR-1) and mail it with a $50 fee to the NJ Division of Revenue. Alternatively, you can submit the form online after registering with the Division of Revenue & Enterprise Services.
Website domain: Even if you plan on having a website later, reserving your domain name now is brilliant. Before finalizing your LLC name, check if the website address (URL) is available. This way, you keep the option open for creating a website later.
Step 2: Choose a Registered Agent
Every LLC in New Jersey needs a registered agent, either yourself or another responsible person, who is the official point of contact. Your registered agent must:
- Be a resident of New Jersey
- Be at least 18 years old
- Be someone trustworthy if it’s not you
If you’re only sometimes around during business hours, think about hiring a professional registered agent service. They can handle essential documents and ensure you get them on time.
Step 3: File a Certificate of Formation
To properly register your New Jersey LLC, you must complete and submit an Articles of Organization(Certificate of Formation) to the New Jersey Department of Treasury, which can be done online or by mail.
You’ll need the following information:
- Your LLC name
- Name and address of your registered agent
- Reason for forming the LLC
- Duration of the LLC’s existence
- Management structure
- Signature of the LLC’s organizer
After filing your Certificate of Formation, the secretary of state will review it. If approved, your LLC becomes a legal business entity.
Step 4: Received a Certificate From the State
Once your LLC’s formation documents are filed and approved, the state will give you a certificate confirming that your LLC officially exists.
This certificate enables you to get an Employer Identification Number (EIN), business licenses, and a business bank account for your LLC.
Step 5: Obtain an Operating Agreement
An LLC operating agreement outlines your business’s operations. While not required in New Jersey, it’s useful, even for single-member LLCs. It helps with tasks like opening a bank account, financing, or changing membership.
Your operating agreement should cover the following:
- Management structure
- Ownership percentages
- Profit and loss distribution
- Voting rights
- Member and manager responsibilities
- Meeting procedures
- Buyout rules and transfer procedures
Step 6: Get an Employer Identification Number
If you plan to have employees or your LLC has multiple members, apply for an Employer Identification Number. This number, similar to a Social Security number for your business, is essential for filing taxes and opening a business bank account. It also establishes your business as a separate entity.
You can apply through IRS website or by filing IRS Form SS-4 by mail or fax. Applying online gives you an immediate reply, while fax applications take 3-4 business days. If you mail the application, expect a response from the IRS within 4-5 weeks.
Follow these steps to start your LLC in New Jersey and get your business going.
LLC State Guides
FAQs
What is the cost of starting an LLC in New Jersey?
Starting an LLC in New Jersey requires payment of a $125 fee.
Do New Jersey LLCs need to submit annual reports?
Yes. Every business in New Jersey needs to file an annual report. You should check that your registered agent and address are correct and pay a $75 fee. The report is due by the end of the month when you first set up your business (LLC, Corporation, etc).
What is the typical processing time for creating an LLC in New Jersey?
Processing typically takes 3-4 weeks, but expedited service is offered for an extra fee, reducing it to 1-2 business days.
