How to Start an LLC in New Jersey (Step-by-Step Guide)

If you’re considering forming a New Jersey LLC, you’re making a smart choice for protecting your assets while enjoying flexibility in business operations.

To establish your LLC successfully, you must choose a unique business name, designate a registered agent, file public records filings, obtain an EIN, and register your business.

But there’s more.

Forming your LLC in New Jersey costs about $125, and it takes five to ten business days for approval.

This guide compiles all the information you need to start an LLC in New Jersey today.

What Are the Steps to Start an LLC in New Jersey?

To start an LLC in New Jersey, you need to:

• Step 1. Choose a Unique Name for your New Jersey LLC
• Step 2. Designate a registered agent in New Jersey
• Step 3. File New Jersey LLC Public Record Filing and Certificate of Formation
• Step 4. Create an Operating Agreement
• Step 5. Get an EIN from the IRS
• Step 6. File a Business Registration Application
• Step 7. File a BOI Report
• Step 8. File annual reports

Let us dive more in-depth into these steps so I can show you how to get them:

Step 1: Choose a Unique Name for your New Jersey LLC

Choosing a name for your LLC is a crucial step in starting your business. This name should be unique and distinguishable from others. You can’t pick a name already in use or one too similar to an existing business name.

To start, check the New Jersey business name database. This will help you ensure your desired name is available.

The name must include “limited liability company,” “LLC,” or “L.L.C.” Avoid names that may mislead people into thinking your business is related to a government agency.

If you find a name you love, consider reserving it. This can prevent others from claiming it while you prepare your LLC documents. You can reserve your name for up to 120 days with a small fee.

If your LLC might operate in other states, check their name databases, too. This prevents issues later when registering as a foreign LLC.

Lastly, think about purchasing a domain name that matches your business name. Even if you don’t plan a website now, it’s a good idea to secure it early on.

Step 2: Select a Registered Agent in New Jersey

Selecting a registered agent is crucial when starting your LLC in New Jersey. A registered agent is your official contact for legal documents and government notices.

Who Can Be a Registered Agent?

You have a few options for who can be your Registered Agent in New Jersey:

• You: You can act as your registered agent, but remember you must be available during business hours to receive documents.
• A Family Member: A trusted family member can be your registered agent.
• An LLC Formation Service: Professional services offer expertise in handling official correspondence and ensuring compliance with state regulations.
• A Lawyer: A legal service firm can also serve as your registered agent, providing additional legal support if needed.

Requirements for New Jersey Registered Agents

New Jersey law requires registered agents to have a physical street address, not just a P.O. Box. The address must be where the agent can consistently receive legal documents and official mail during regular business hours.

Additionally, the registered agent must be at least 18 years old and available to accept service of process. This means they must be present to handle any legal notices or court documents delivered to the LLC.

What registered agents do I recommend for New Jersey?

I highly recommend Northwest registered agent services for obvious reasons.

They offer a range of benefits that set them apart, including a free year of registered agent service, which helps you save (about $300) on initial costs.

You’ll receive a complimentary operating agreement essential for outlining your LLC’s internal structure. My favorite part? Northwest also allows you to use their office address for your LLC filing, keeping your address off public records and enhancing your privacy.

Their free email forwarding service ensures you stay on top of important correspondence, and their exceptional customer support is always available to assist you whenever needed.

Step 3: File New Jersey LLC Public Record Filing and Certificate of Formation

To officially set up your LLC in New Jersey, you must file a Public Records Filing for New Business Entity. It is the most crucial document that officially registers your LLC with the state of New Jersey.

This form includes essential details such as your LLC’s name, address, registered agent, and members’ or managers’ names.

To file your Public Record Filing in New Jersey, follow these steps:

Step #1. Complete the Form: Obtain and complete the Public Records Filing from the New Jersey Department of Treasury.

Include the following:

• LLC Name: The chosen name for your LLC.
• Registered Agent: Provide the name and address of your agent.
• Purpose Statement: A brief description of why you are forming the LLC.
• Duration: State whether your LLC will exist for a specific time or indefinitely.
• Management Structure: Specify how your LLC will be managed (by members or managers).
• Signer: The organizer must sign the articles.

Step #2: File Online: You can file your Public Records Filing online through the New Jersey Division of Revenue & Enterprise Services website.

Step #3: Pay the Filing Fee: The filing fee is $125. This fee is paid only once when you create your LLC.

Once the state approves it, you will obtain a Certificate of Formation or Certificate of Authority displaying your Entity ID. An Entity ID is a 10-digit number that identifies your corporate business records. Your corporate records are public and kept separate from your confidential tax records.

This document is essential as it allows you to open a business bank account, obtain a business license, and get an Employer Identification Number (EIN).

Step 4: Prepare Operating Agreement for Your New Jersey LLC

An operating agreement is a document that outlines how your LLC will operate. It includes details about ownership, management, and duties.

While New Jersey does not require an operating agreement, having one is wise. It helps prevent misunderstandings among members and protects your limited liability status.

Here are some key components to include in your operating agreement if you choose to prepare one:

• Ownership Structure: Listing all members and their ownership percentages.
• Management Roles: Specify who will manage the LLC. This can be member-managed or manager-managed.
• Voting Rights: Define how decisions will be made. Will all members have equal votes?
• Profit Distribution: Explain how profits and losses will be shared among members.
• Meeting Procedures: Outline how often meetings will occur and how members will be notified.
• Amendment Process: Describe how changes can be made to the agreement in the future.

Creating an operating agreement may feel complex, but it’s essential for clarity.

It serves as your LLC’s rulebook, guiding operations and avoiding conflicts down the line. Keeping everyone on the same page is even more vital if you have partners.

You can create your operating agreement using templates or by consulting an expert. This will ensure it meets both your needs and New Jersey requirements.

Step 5: Obtain EIN for Your NJ LLC

An Employer Identification Number (EIN) is a unique nine-digit number the IRS assigns. It identifies your business for tax purposes.

You will need an EIN to open a bank account, hire employees, file taxes, and apply for business licenses and permits.

How to Apply for an EIN:

• Online: Visit the IRS website. This is the fastest way to get your EIN.
• By Mail: Fill out Form SS-4 and send it to the IRS. This option takes longer.
• By Fax: You can also fax the completed Form SS-4.
• Phone: U.S. residents can call the IRS at 1-800-829-4933 to apply.

How Much Does It Cost To Get EIN?

Obtaining an EIN is free. However, some services charge $100 or more to help you with the entire process.

How Does it Take to Obtain my EIN?

• Online: Get it immediately.
• By Mail: Expect 4 to 6 weeks.
• By Fax: Usually within 1-2 weeks.

Step 6: File a Business Registration Application

All businesses must register for state taxes with the New Jersey Department of Taxation’s Division of Revenue & Enterprise Services (DORES) to provide information that will let the state determine the taxes and employer contributions for which you may be responsible.

Failure to register your business will result in penalties and fees on taxes owed to the State of New Jersey.

Once your LLC formation is approved, you must register with the State of New Jersey at least 15 business days before starting any business activities.

You must complete the Business Registration Application (Form NJ-REG) to register. This application is essential for complying with New Jersey tax laws.

Before you complete this form, make sure you have:

• Your entity ID (the 10-digit number you obtain when you form your business)
• Your NAICS code (this is an 8-digit number used to classify your business industry in the United States)
• Sales tax collection information (this is done through your chosen accounting system, for example, QuickBooks)
• Anticipated first payroll withholding date for employees (if applicable)
• Mailing address and business location(s)

Completing this step properly ensures you are on the right side of New Jersey’s business regulations.

Once the Division of Taxation approves your LLC’s registration, you will receive a “Business Registration Certificate. “

If you sell retail goods and register for sales tax, you will also receive a “Sales Tax Certificate of Authority. “ This certificate allows you to collect sales tax and must be displayed at your business location.

Step 7: File a BOI Report

After setting up your LLC in New Jersey, you must file a Beneficial Ownership Information (BOI) report. This is a federal requirement for new LLCs.

You must submit this report to FinCEN within 90 days of forming your LLC. Filing is free and can be done online at the FinCEN website.

Here’s what you need to prepare:

• Company Information: Name, address, and formation date.
• Beneficial Owners: Full names, addresses, dates of birth, and identification numbers.

Gather this information along with your LLC formation documents. This will help streamline the filing process.

Completing the BOI report is essential for maintaining compliance with federal regulations. It ensures transparency about who owns and controls your LLC. Take the time to do this correctly to avoid any potential penalties.

Step 8: File an Annual Report

As a New Jersey LLC owner, you must file an annual report. This keeps your business in good standing with the state and ensures all legal obligations are met.

The cost to file your Annual Report is $75. This fee is required every year. Your Annual Report is due by your LLC’s anniversary date when the state approves your LLC.

If your LLC was formed on August 28, 2024, your report is due on August 28 every year.

Your first Annual Report must be filed the year after your LLC’s approval.

Filing can only be done online. New Jersey does not accept mail submissions for Annual Reports. When you file, have your LLC’s details and payment method ready.

This step will ensure your LLC remains compliant and protected in New Jersey.

What are the Different Methods To Start a New Jersey LLC?

You have several options for starting your LLC in New Jersey. Each method offers distinct advantages and challenges depending on your needs and comfort level.

DIY LLC Formation in New Jersey

Starting your LLC by yourself can be cost-effective and straightforward. You must complete the New Jersey Certificate of Formation and file it with the state.

Pros:

• Cost savings: You only pay filing fees.
• Complete control: You manage every step of the process.
• Learning experience: You gain knowledge about operating an LLC.

Cons:

• Time-consuming: It requires significant time to research and complete paperwork.
• Complexity: It might be confusing if you are unfamiliar with business laws.
• Risk of errors: Mistakes in the application can delay your approval.
• Privacy issue: If you serve as your registered agent, you risk having your address out there.

Using a Professional/Online LLC Formation Services

Many online services can help with the formation process, making it easier for you. These services guide you through each step and handle most of the paperwork.

Pros:

• Convenient: Saves time since they manage the paperwork for you.
• User-friendly: Step-by-step processes simplify the formation.
• Support: Access to expert help if you have questions.
• Privacy benefits: Most services allow you to use their address for free, so your address doesn’t get compromised

Cons:

• Cost: Fees for services vary and can add up.
• Variable Quality: Some services may not be as reliable as others.

Hiring an Attorney

Engaging an attorney can ensure that your LLC is set up correctly. This is particularly helpful if you have complex needs or specific questions.

Pros:

• Expert knowledge: An attorney offers tailored advice and assistance.
• Customized service: Your specific circumstances can be addressed.
• Legal protection: Ensures compliance with all regulations and laws.

Cons:

• Higher costs: Legal fees can be significant, especially for ongoing services.
• Less hands-on: You might not learn as much about the process.
• Time investment: Scheduling consultations may take additional time.

What is The Cheapest Alternative Way to Form an LLC in New Jersey?

If you want to start an LLC in New Jersey on a budget, the most affordable option is to do it online. By filing the Public Records Filing directly with the New Jersey Division of Revenue & Enterprise Services, you can keep costs between $125 and $200, depending on your needs.

This DIY approach helps you avoid the extra fees of hiring a service or lawyer, saving you money for other business expenses.

However, while DIY is cost-effective, it requires some effort. You’ll need to understand all the forms and regulations, and missing a detail could delay your application or create problems later.

Consider using a registered agent if you prefer not to handle everything yourself.

They can make the process smoother by ensuring you receive important documents and helping you stay compliant with state requirements. Although this adds a bit to the cost, it can provide valuable support and peace of mind.

Who Provides the Best LLC Services in New Jersey?

There are a myriad of New Jersey LLC services from which to choose. Choosing the wrong one can affect your New Jersey LLC formation timeline—I know this from my experience using a few and researching a dozen over the years.

Here are some top-rated options you should consider:

Best New Jersey LLC Service	Google Rating	LLC Formation Cost	Registered Agent Fee
Northwest Registered Agent	4.7/5	$39	Free for one year
Doola	4.6/5	$0 (plus state fees)	$297/year
Tailor Brands	4.4/5	$0 (plus state fees)	$199/year
ZenBusiness	N/A	$0 (plus state fees)	$199/year

Besides, the fact that other services bill you for their registered agent in the first year, and Northwest offers it for free, is a HUGE plus for me.

Northwest Registered Agent stands in New Jersey LLC formation due to its commitment to transparency, customer service, and privacy. Using their address helps protect your personal information, making them a reliable choice.

How Much Does It Cost To Form an LLC in New Jersey?

Forming an LLC in New Jersey costs around $125, which covers the New Jersey LLC formation fees. However, there are other fees you need to be aware of.

Requirement	Cost
Certificate of Formation	$125
LLC formation service	$39 (via Northwest)
Registered Agent Fee	$0 (via Northwest)
Business Registration	$0
EIN (Employer Identification Number)	$0
Annual report	$75
Total Estimated Cost	$125 – $200

When forming a new company in NJ, budgeting about $125-$200 for the first year is ideal. Then, if you want to go further, you can get other bells and whistles like a virtual mailbox, custom website, trademark services, premium EIN services, etc.

That said, the most significant (and essential) expense for every New Jersey business owner is filing the Public Records Filing, which costs $125.

Pros and Cons of Forming an LLC in New Jersey

6 Important Things To Do After Forming Your New Jersey LLC

Once you’ve formed your LLC in New Jersey, several vital steps must be taken. These steps will help ensure your business runs smoothly and complies with local laws. Here are essential actions to consider right after formation.

1. Research the Best Licenses and Permits for Your Business

New Jersey requires businesses in many industries to obtain licenses before doing business in the state, so you’ll need to check if you need one when you’re learning how to get an LLC. 

After forming your LLC, research any required licenses and permits based on your business type. Different industries may need specific approvals or registrations.

Start by checking with the New Jersey Division of Revenue and Enterprise Services. They provide details on business permits. You may also need local licenses depending on your city or county.

Make a list of necessary permits and the application process for each. This could include health permits, building permits, or professional licenses.

Starting a PLLC requires obtaining a New Jersey state license or permit before practicing. Each member of your PLLC must maintain an active license in good standing in the same profession.

Keep deadlines in mind. Some permits require renewals every year or every few years. Stay on top of these to avoid fines.

2. Create Business Accounts for Your LLC

Opening a separate bank account for your LLC is essential for keeping your business finances organized and distinct from your funds. This separation simplifies your accounting and helps safeguard your assets by clearly distinguishing between personal and business transactions.

When choosing a bank, look for one that offers business-friendly services, such as waived fees, free online banking, and other features that can benefit your business. To open the account, be prepared to provide your EIN and a copy of your Articles of Organization.

A dedicated business account streamlines your financial management and simplifies tax preparation.

Having all your business transactions in one place lets you easily track your income and expenses, ensuring everything is well-organized and accessible when tax season rolls around.

3. Understanding New Jersey Tax Requirements and Managing Your Taxes

New Jersey has specific tax obligations. Familiarize yourself with these requirements to avoid penalties.

Your LLC may be subject to several types of taxes, including the New Jersey Corporation Business Tax. You may also need to file a partnership return if your LLC has multiple members.

Sole proprietors and single-member LLCs do not file a business Income Tax return. They are treated as individuals for Income Tax purposes and must file an NJ-1040 or NJ-1040NR return to report and remit any net profit earned from the business.

It would be best if you also considered the Federal Income Tax. Your business structure affects how you report taxes. Single-member LLCs are usually taxed as sole proprietors. Multi-member LLCs often file as partnerships.

Every New Jersey business selling taxable items or services must collect and remit New Jersey Sales and Use Tax when sales are completed by delivery to a New Jersey location or service performance in this State.

4. File your Annual Report

In New Jersey, every LLC must file an Annual Report. This report keeps your business information current with the state.

You must submit your annual report for your anniversary by the end of the month of formation. The filing fee is $75.

This report will include basic details like your business address, registered agent, and any management changes. Failing to file may result in penalties, including losing your good standing status.

Set a calendar reminder to complete this annual task on time. Keeping your information updated helps avoid issues down the line.

5. Get Business Insurance for your LLC

Just as you wouldn’t leave your home without coverage, your LLC also needs the right business insurance to guard against potential risks and liabilities. Insurance protects your company’s assets and ensures financial stability in case of unforeseen issues or legal claims.

Your insurance needs will vary based on your business operations.

For example, general liability insurance covers risks such as slip-and-fall accidents or property damage if your LLC operates from a physical storefront.

Conversely, if you run your business as a consultant and work remotely, you might only need professional liability insurance to cover potential service errors or omissions. Assessing your business needs helps you choose the appropriate coverage to protect your LLC.

6. Setup Your Business Online Presence (optional)

Having an online presence can significantly benefit your LLC. Start by creating a professional website that reflects your brand.

Your website should include essential information such as your services, contact details, and customer testimonials. It should also be user-friendly and mobile-responsive.

Consider setting up relevant social media accounts for your business. This will help you engage with customers and market your products or services. Platforms like Facebook, Instagram, and LinkedIn can enhance your visibility.

Lastly, consider listing your LLC on online business directories. This boosts your chances of being found by potential customers.

New Jersey LLC vs. S Corp vs. Partnerships vs. Sole Proprietorship vs. Corporations

Choosing the proper structure is essential when starting a business in New Jersey. Here’s a quick look at different types:

Sole Proprietorship

A New Jersey sole proprietorship is the most straightforward way to start a business. Imagine you’re running a lemonade stand on your own. You make all the decisions and keep all the profits.

However, there’s no legal separation between you and your business. If your lemonade stand faces financial trouble or legal issues, your assets, like your car or home, could be at risk. It’s easy to set up and manage, but it does leave you personally responsible for any business debts.

Partnership

A New Jersey partnership involves teaming up with one or more people to run a business together.

Think of it as joining forces with a friend to open a café. You share the profits and responsibilities, and you both make business decisions.

However, like a sole proprietorship, each partner is personally liable for any business debts or legal issues. If the business encounters financial trouble, your assets could be at risk, too. Partnerships are relatively easy to set up but require clear agreements between partners to avoid conflicts.

LLC (Limited Liability Company)

An LLC offers a blend of flexibility and protection.

Picture it as a protective umbrella over your lemonade stand. This structure separates your assets from your business, so if your LLC faces legal issues or debts, your personal belongings are generally safe.

LLCs are more formal than sole proprietorships or partnerships but offer management and tax treatment flexibility. They are ideal for small—to medium-sized businesses that want liability protection without the complexity of a corporation.

S-Corporation

An S Corporation is a more structured business form.

Think of it as a business where owners are shareholders, much like a small-scale company with multiple investors. It protects liability and allows profits to pass through to your tax return, avoiding double taxation.

This means you report the income and losses on your tax return, which can be beneficial for tax purposes. However, S Corps have stricter operational requirements and formalities compared to LLCs.

Corporation

A New Jersey corporation is the most complex structure, suitable for larger businesses aiming for significant growth. Imagine a big company with many shareholders. A corporation offers robust liability protection and is a separate legal entity from its owners, meaning your assets are protected.

Corporations can raise capital more efficiently by issuing stock and can offer employee benefits.

However, they come with extensive regulatory requirements, formalities, and paperwork, making them more suitable for businesses with significant resources and expansion plans.

My Final Thoughts: Forming an LLC in New Jersey

Starting an LLC in New Jersey is an exciting step toward bringing your business idea to life. Although it might seem like many steps initially, breaking them down makes the process more manageable and ensures you cover all the essential bases.

Starting an LLC in New Jersey involves several key steps:

• Choose a Name: Your LLC name must meet state requirements.
• Appoint a Registered Agent: Designate someone to receive legal documents.
• File the Certificate of Formation: Submit this to the state to officially create your LLC.
• Create an Operating Agreement: Outline the management and ownership of your LLC.
• Obtain EIN from the IRS
• Register for Taxes: Complete the necessary tax registrations within 60 days of formation.
• File a BOI Report
• File annual reports

The filing fee for the Certificate of Formation is $125.

After the formation, your LLC must pay an annual report fee of $75. This fee ensures your business remains in good standing with the state.

Following these steps and cost planning, you can successfully establish your LLC in New Jersey. Taking the time to meet all requirements will help you build a solid foundation for your business.

Learn More About Starting an LLC in New Jersey

If you need additional help to start an LLC in New Jersey, check out these valuable resources:

Frequently Asked Questions

Can I change my registered agent in New Jersey?

Yes, you can change your registered agent in New Jersey. You must file an official form with the state to update this information.

What’s the difference between LLC formation vs LLC registration in New Jersey?

In New Jersey, “formation” and “registration” mean separate things. The “formation” step is the Public Records Filing, and the “registration” step is the Business Registration Application.

How do I change my New Jersey LLC’s name?

To change your LLC’s name, you must file an amendment with the New Jersey Division of Revenue. This is a simple process that may require a fee.

How do I renew my New Jersey LLC?

To maintain your LLC status, you must file an annual report, typically done online, with a renewal fee.

How do I dissolve an LLC in New Jersey?

To dissolve your LLC, you must file a Certificate of Cancellation with the New Jersey Division of Revenue. Make sure to settle any debts and obligations before proceeding.

How do I add a member to a New Jersey LLC?

To add a member, you must follow your operating agreement guidelines. You’ll likely need to amend the operating agreement and notify the state if required.

How do I add a DBA to an LLC in New Jersey?

To add a Doing Business As (DBA) name, file a Trade Name Registration with the state. This can usually be done online.

Can a minor own an LLC in New Jersey?

Yes, a minor can own an LLC in New Jersey. However, due to legal restrictions, an adult must generally act on behalf of the minor.

What is the Cost of the New Jersey Annual Report?

The cost to file the New Jersey Annual Report is typically $75. This fee is required to keep your LLC in good standing.

Does LLC expire in New Jersey?

LLCs in New Jersey do not expire as long as you file your annual reports and pay the required fees. Failing to do so can lead to dissolution.

Can a non-resident open an LLC in New Jersey?

Yes, non-residents can open an LLC in New Jersey. There are no residency requirements to form an LLC in the state.

Can I buy a house or car with my LLC in New Jersey?

Yes, you can buy a house or car in New Jersey under the name of your LLC. This helps separate personal and business assets.

Can you have multiple businesses under one LLC in New Jersey?

Yes, you can run multiple businesses under one LLC. This is known as having various DBAs for your LLC.

Is New Jersey a good state to form an LLC? Is it worth it?

New Jersey has specific advantages, like a large market, but it also has higher fees and taxes. Consider these factors based on your business goals.

Can one person form an LLC in New Jersey?

Yes, one person can form an LLC in New Jersey. This single-member LLC is a standard structure for many new businesses.