How To Form an LLC In New Jersey (NJ)?

If you are wondering how to form an LLC in New Jersey, this is your guide.

Starting a new business can be overwhelming, but we’re going to help you get your company formed as quickly and easily as possible. From choosing a business name and hiring a registered agent to filing an article of organization and complying with federal and state laws, we will show you exactly what you need to do to get your New Jersey LLC off the ground.

Start By Picking a Name for Your New Jersey LLC

Let’s start with a fun and easy task: picking a name for your LLC. There are just a couple of things you need to bear in mind. First, choose a name related to your business activities in New Jersey — that way, it’s easy for potential customers to understand exactly what your business does as soon as they hear your name.

Next, choose a name that is easy to remember and pronounce — you want to make it easy for people to refer to your company.

Finally, make sure your chosen business name complies with the naming guidelines and requirements in New Jersey, which include the following:

• Your chosen name must be distinguishable and unique from other New Jersey LLCs.
• Your New Jersey LLC name must have the phrase; “LLC” or “L.L.C,” or “limited liability company” at the end.
• Restricted words, such as University, Bank, Attorney, etc., will need additional paperwork and a licensed person, such as a lawyer, to be part of your New Jersey LLC.
• The business name should not confuse your New Jersey LLC with government agencies.

You should also ensure that your ideal business name is available in New Jersey. You can confirm this by running a business name search on the State of New Jersey website.

Hire a Registered Agent

The state of New Jersey requires all LLCs to nominate a registered agent before officially forming their company. The good news is that New Jersey does not restrict who you can appoint as a registered agent as long as they meet a few basic requirements. These include being available during regular working hours and having a physical street address in New Jersey.

You can nominate yourself, a friend, or any member of your LLC as your registered agent. Alternatively, you can hire a professional registered agent service provider if you have the budget.

It’s a sensible choice and one that thousands of businesses in the state have already made. If you choose this route, we recommend one of the following registered agent service providers:

Northwest

Northwest is one of the best and most reputable registered agent services in New Jersey. Combining affordability, flexibility, and practicality, Northwest will enable you to meet all your compliance requirements.

Their annual fee is only $125, and in return, you can access scanned documents, annual report reminders, pre-filled state forms, and document storage.

Northwest is popular for its excellent customer support and in-depth corporate guides, which teach entrepreneurs about a huge range of business topics.

They are a great choice for multiple business owners, too. If you hire Northwest’s registered agent services in four or mre states, you will be eligible for a reduced annual fee of $100.

ZenBusiness

Ranked #1 on Investopedia, MarketWatch, and Forbes, ZenBusiness is a highly regarded name in the registered agent industry.

With ZenBusiness, you can access a personalized dashboard, document scanning, email notification, and mail forwarding. They also have a $5K Grant Program, which assists struggling entrepreneurs across the US in starting and growing their businesses.

ZenBusiness’ annual fee is $199, but you can upgrade this package to include additional perks, such as annual support reminders and document submissions.

IncFile

IncFile is another top New Jersey registered agent service provider. They provide a vast range of different tools and services and are a popular choice because they offer a year’s free registered agency service when you buy their company formation package.

IncFile’s registered agent service includes everything you’d expect, including access to a digital personalized dashboard, tailored email and text notifications, and automatic mail forwarding.

IncFile’s registered agent services only cost $119 per year.

File Your Article of Organization

After hiring a reputable registered agent for your New Jersey LLC, the next step is to file an article of organization and register your LLC with the New Jersey Division of Revenue and Enterprises.

The easiest and fastest way to register your New Jersey business is by filing an Article of Organization via the New Jersey Online Business Formation System. To do this, you must create an account using an active email address and your chosen LLC name. You will also need a credit card to pay the state filing fee of $125.

If you do not want to use the online filing method, you can register your New Jersey business by mail. If you choose this option, you must download and accurately fill out the New Jersey Business Registration Form. Then, mail the form together with a check or money order for $125 to the following address:

New Jersey Division of Revenue and Enterprises
P.O. Box 252
Trenton, NJ 08646

Draw Up an Operating Agreement

Unlike filing an Article of Organization, there is no legal requirement to create an operating agreement for your company. However, drafting one has many benefits.

An Operating Agreement is an internal agreement that outlines the responsibilities of the LLC’s managers and members, the company ownership percentage, profit and loss distribution clauses, voting rights, and members’ liability clauses. As you can imagine, clarity on these important issues can prevent disputes between LLC members in the future.

Creating an operating agreement in New Jersey is a straightforward process, as there are many operating agreement templates that you can download online and use. You can also purchase an LLC formation package that includes an operating agreement to draft one on your behalf or speak to an attorney.

Check if You Need a License or Permit

In addition to having all your LLC formation documents ready, you must obtain all the necessary permits and licenses before you can legally start operating in New Jersey.

In New Jersey, LLCs are not legally required to obtain a general business license. However, you will likely need other permits depending on your type of business industry and LLC location. You can check your specific licensing requirements with the New Jersey Business Licensing and Permits Guide.

After obtaining the required licenses, you should periodically renew them, usually biannually or annually. Failing to renew your business permits and licenses may jeopardize the status of your LLC.

Get a Federal Tax ID

Also known as an Employer Identification Number (EIN), a Federal and State Tax Tax ID is a unique number the IRS uses to identify businesses for tax purposes. You can think of it like your business’ Social Security Number (SSN).

You will need a Federal and State Tax ID for several reasons, including the following:

• Opening a business bank and credit account
• Filing federal and state-level tax returns
• Hiring employees

Acquiring a Federal and State Tax ID in New Jersey is straightforward. You can apply for your Federal and State Tax ID online via the IRS website. You can also obtain it via mail or fax by downloading and accurately filling out form SS-4. The application is free of charge.

Open a Business Bank Account

As soon as your New Jersey LLC is up and running, you must open a business bank account to separate your personal and business funds. A business bank account will also make it easier to manage cash flow and file your tax returns.

The requirements for opening a business bank and credit in New Jersey vary from one financial institution to the other. However, at the very minimum, you will need your LLC’s Federal and State Tax ID, certificate of formation (article of organization), and an operating agreement.

Most financial institutions also require a minimum deposit to open a business bank account. Some will also require LLC owners to maintain a minimum balance.

There are plenty of banks in New Jersey to choose from, including the following:

• North Jersey Federal Credit Union
• Blue Foundry Bank
• Peapack-Gladstone Bank

Acquire Business Insurance

We’ve turned third and are into the home straight now. Next up on your list is business insurance. Here is a list of business insurance policies you may wish to purchase:

• General liability insurance: It offers protection against bodily injuries, property damages, or personal injuries resulting from your New Jersey LLC.
• Workers’ compensation insurance: Offers protection to employees against on-the-job injuries, illnesses, or even death. Every New Jersey LLC with 3+ employees must obtain this insurance coverage.
• Professional liability insurance: This policy is common with LLCs that offer professional services. It protects your business entity against claims of negligent or inaccurate work.

Speed Up the Process With an LLC Formation Package

If the process of forming your LLC in New Jersey seems daunting and time-consuming, and you would like extra help from experienced experts, consider purchasing an LLC formation package.

Many LLC formation companies offer packages guaranteed to streamline and accelerate the process of starting your LLC in New Jersey.

Some companies, such as ZenBusiness, even do it for free. For instance, buy their Starter package, and you only have to pay state filing fees. What’s more, they promise to have your LLC formed in 2-3 weeks.

MyCompanyWorks is another reputable company with a comprehensive LLC formation package. At only $59 plus state filing fees, MyCompanyWorks promises to handle all the essentials of forming your New Jersey LLC.

FAQs About Forming an LLC in New Jersey

How Long Will It Take to Form My New Jersey LLC?

If you file your Article of Organization online, your New Jersey LLC will be ready within one day. However, if you file by fax or mail, you will wait for up to nine weeks. Since online filing is processed on the same day, New Jersey does not have expedited processing times.

How Much Does It Cost to Set Up an LLC in New Jersey?

The primary cost of forming a New Jersey LLC is $125. This is the fee for filing your Article of Organization with the state. There may also be additional costs related to reserving your business name, hiring a registered agent, and purchasing relevant business insurance policies.

Can I Act as my Own Registered Agent in New Jersey?

New Jersey does not impose any restrictions regarding who can be your registered agent. You can even nominate yourself as your registered agent if you meet the primary requirements. For instance, you must have a permanent street address in New Jersey and be available to receive and forward correspondence documents during regular business hours in the state.

Can I Form a Single-Member LLC in New Jersey?

Yes. New Jersey state laws allow you to form a single-member LLC by following the steps, rules, and guidelines discussed in this article. Alternatively, you can hire an LLC formation company to form one for you.

Form Your New Jersey LLC Today

We hope you found this guide on forming an LLC in New Jersey insightful and that you now feel equipped to start the process.

The LLC formation in New Jersey is fairly straightforward, and you can complete it in only a few steps if you follow the guidelines and steps discussed in this article. However, if you find the process time-consuming and daunting, you can purchase an LLC formation process to streamline and speed up the formation process. The best of luck whichever route you choose!

Also see:

• New Jersey (NJ) Secretary of State (SOS) LLC & Business Search
• New Jersey (NJ) Registered Agent Services
• How To Find New Jersey Bookkeepers