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We rank vendors based on rigorous testing and research, but also take into account your feedback and our commercial agreements with providers. This page contains affiliate links. Advertising Disclosure
If you’re looking to make your entrepreneurial dreams come true in the state of New Jersey, forming a Limited Liability Company (LLC) might just be the best way to get your business off the ground. LLC formation is a great way to gain credibility, enjoy tax flexibility, and keep your personal and business assets separate.
Additionally, New Jersey has a favorable business climate, including the Sales and Use Tax Exemption program. Under the program, businesses can buy equipment, furniture and fixtures, and building materials used to renovate or construct a new business without paying sales taxes.
But let’s be clear: it’s not easy. Setting up an LLC involves multiple steps that require an understanding of New Jersey’s business laws, from filing the necessary paperwork to ongoing reporting requirements. And you don’t want to get these wrong. Non-compliance can lead to daunting legal and financial repercussions that could see your business dreams evaporating before your eyes.
The process, while feasible, is complex and requires meticulous attention to detail, and that’s why we’ve created this easy-to-follow guide. Let’s get started!
Short on Time? Here’s a Quick Guide to Forming an LLC in Any US State:
These are the bare minimum required steps to form an LLC in any state, district, or territory in the USA. Remember, these are generalized steps, and we’ve outlined more detailed requirements and the specific rules and regulations for New Jersey in our full guide below. Always consult with a legal advisor, New Jersey’s Department of the Treasury office, or one of our recommended LLC formation services for accurate, up-to-date information.
You need to choose a business name that’s both unique and compliant with your state’s regulations for your LLC.
You must appoint a Registered Agent, someone or an entity responsible for handling legal documents and official correspondence on behalf of your LLC. It could be yourself or a partner, or you can even consider using an LLC formation service like ZenBusiness.
Don’t forget to submit your Articles of Organization to the Secretary of State or equivalent office in your state. These documents typically include your LLC’s name, address, and your Registered Agent’s contact details.
While technically optional, it’s highly likely that you’ll need to apply for an Employer Identification Number (EIN) from the IRS and register for various state and local taxes.
How To Form an LLC in New Jersey: a Comprehensive Guide
Before you begin, be sure to take note of the following important points:
All LLCs in New Jersey mustregister for state taxes with form NJ-REG at least 15 days prior to opening.
In New Jersey, you can operate under a more marketable name by filing an Alternative Name form with the State.
If you’re an out-of-state entity starting a NJ-based LLC, you’ll need a certificate of good standing from your home state.
Depending on the type of business you are conducting, you may need to acquire other local or state business licenses.
1. Choose a name for your LLC
Select a name that reflects your business and complies with New Jersey’s naming rules. The name must be unique, not be too similar to existing businesses, and include an LLC designator like “Limited Liability Company,” “LLC,” or “L.L.C.” Perform a name search on New Jersey’s Department of the Treasury website to ensure your chosen name is available.
You should also consider searching for and registering a domain name for your business website, which is included with an LLC formation plan from Tailor Brands.
2. Appoint a Registered Agent
A Registered Agent is a person or entity responsible for receiving legal documents (e.g., lawsuits, summons) and official government correspondence on behalf of your LLC. The Registered Agent must have a physical address (not a P.O. box) in the state of New Jersey, and must be available during regular business hours.
You can choose a member of the LLC if it is a partnership, a friend, a professional Registered Agent service like ZenBusiness, or even yourself.
This foundational document needs to be filed with New Jersey’s Department of the Treasury office. This costs $125, and must include the following information, at minimum:
LLC name
Principal office address
Registered Agent’s name and address
Name and signature of the organizer(s)
4. Create an LLC Operating Agreement
An Operating Agreement is optional for LLCs in New Jersey. This is a legal document that outlines the ownership, management structure, and operating procedures of your LLC. It typically includes information on:
Members’ ownership percentages
Voting rights and responsibilities
Profit and loss allocation
Management structure (member-managed or manager-managed)
Procedures for adding or removing members
Creating an Operating Agreement helps avoid disputes among members and provides clarity on how the business should be run, and while not mandatory, is highly recommended.
5. Obtain an Employer Identification Number (EIN)
An EIN is a unique nine-digit number assigned by the IRS to your LLC for tax purposes. It’s required for filing business taxes, hiring employees, and opening a business bank account, which you should also do to keep your personal and business finances separate.
However, if your LLC is a single-member LLC with no employees and is classified as a disregarded entity for tax purposes, you may be able to use your Social Security number (SSN) instead of an EIN for federal tax filing. But even in this case, it is generally recommended to obtain an EIN to separate business activities from personal ones and maintain the limited liability protection.
6. Register for state and local taxes
Depending on your business activities and location in the state of New Jersey, you may need to register for various state and local taxes, such as:
Sales and use tax
Payroll tax
Income tax withholding
Unemployment insurance tax
Workers’ compensation insurance
Consult the New Jersey Department of the Treasury website or a professional LLC formation service for more information on registration requirements in your local region.
7. Obtain necessary licenses and permits
Your LLC may require specific licenses or permits to operate legally in New Jersey, depending on the industry and location. Examples include:
Professional or occupational licenses
Health and safety permits
Zoning and land use permits
Sales tax licenses
Environmental permits
Visit the New Jersey Department of the Treasury and your local government websites for more information on required licenses and permits, or seek advice from ZenBusiness, which can come up with a plan to cover your exact requirements.
LLCs in New Jersey are subject to ongoing state requirements to remain in good standing. These requirements include:
Filing an Annual Report. The State of New Jersey requires LLCs to submit a yearly Annual Report, which updates the state on key information about your business, such as ownership, Registered Agent, and contact information. This costs $75. This must be filed by the end of the LLC’s formation anniversary month.
Maintaining a Registered Agent. Ensure that your Registered Agent remains available and maintains a valid physical address in the state where your LLC is formed.
Complying with state and federal tax obligations. File your LLC’s tax returns and pay any taxes owed on time. This may include federal income tax, state income tax, sales and use tax, payroll tax, and any other taxes that may be relevant to your particular business.
Renewing licenses and permits. Keep all required licenses and permits up to date by renewing them as needed. Failure to maintain proper licenses and permits can lead to fines or legal trouble.
By staying informed and diligently meeting these ongoing requirements, you can keep your LLC in good standing and protect your limited liability status. The easiest way to do this is to employ one of the selected business service providers we’ve researched and reviewed below.
These Are the Top LLC Formation Services for New Jersey
There are a lot of LLC formation services out there. To come up with the best ones for New Jersey LLCs, we looked for the following features:
A free (minus state fees) plan that saves you the most money.
Feature-packed plans, regardless of cost, so you get the best value.
Unique features not offered by most of the competition, such as creative services, financial tools, or specialty consultations, to move you along.
Ease of use and user friendliness, because who needs a service they have trouble using?
Good customer support, if you need help or guidance getting started.
Customization of plans and services, because not all businesses are built alike.
Here are our top LLC formation services specifically to form an LLC in New Jersey.
ZenBusiness can offer you LLC formation services starting at $0 (plus state fees, of course)ZenBusiness, a reputable LLC formation service, caters to both side hustles and large enterprises. Their highly customizable plans and product bundles suit businesses with varying budget sizes.
ZenBusiness provides a free plan along with two paid options: Pro and Premium. The free plan typically takes 2–3 weeks for filing, but you have the option to purchase an add-on for expedited processing. The Pro and Premium plans, on the other hand, offer filing times as quick as 1–2 days. Importantly, all plans come with a 100% Accuracy Guarantee, ensuring your information remains error-free.Every ZenBusiness plan includes a valuable extra – ZenBusiness Money Essential, a free tool for automated expense tracking. For more comprehensive financial management, you can upgrade to ZenBusiness Money Pro, which covers expenses, income, invoicing, mileage, taxes, and more. If you’re uncertain about your needs, you can take advantage of a free 30-day trial of ZenBusiness Money Pro to compare your options.
Features
Tax consultations. Just for signing up, you’ll get a free 30-minute tax consultation through partner 1-800Accountant.
Mobile app. Access your account dashboard through an Android or iOS app in addition to desktop.
Website builder. ZenBusiness offers access to a proprietary website builder with the Premium plan. You also get a domain name and email address.
Full customization. You can modify your ZenBusiness plan so you get only the services you need – and you won’t be paying for anything you don’t.
Tailor Brands gets you started quickly and easilyTailor Brands stands out thanks to its wide array of visual design and marketing tools, as well as its additional services. With Tailor Brands, you don’t just receive the basics of LLC formation; you also gain access to graphic design resources, brand development materials, social media utilities, and website development services.
A notable feature offered by Tailor Brands is its free “plan generator.” By providing some information about yourself and your business,Tailor Brands constructs a checklistto guide you from your current stage to a fully established online presence. While you’ll encounter suggestions to purchase their plans and services along the way, this tool serves as a valuable foundational guideline for transitioning from the conceptual phase to taking actionable steps in your business-building journey.
Features
Free logo maker. Tailor Brands provides a free logo maker available with all plans, as well as advanced features available with the Elite plan.
Zazzle partnership. Get started with printed merchandise for your LLC with an exclusive deal with Zazzle.
In-house website design. For an added fee, Tailor Brands offers a custom website design to help your business get seen.
Trademark support. Tailor Brands can help you file your trademark application as an add-on service.
Swyft Filings helps the beginner and veteran alike, by doing the paperwork for youIf you’re a new business owner seeking a straightforward way to kickstart your venture, Swyft Filing offers an excellent solution.Swyft Filings’ LLC filing process involves minimal paperwork, making it an ideal choice for those just starting out.
The sign-up process takes only a few minutes, and once you gain access to Swyft Filings’ client account dashboard, you’ll find it remarkably user-friendly.
Swyft Filings goes the extra mile to ensure your business runs smoothly. With every plan, you’ll enjoy a complimentary 14-day trial of ComplianceGuard. This tool helps you stay on top of state business compliance requirements by providing annual reports, meeting minutes, and notifications for filing deadlines. Swyft Filings is there to support you every step of the way, whether you’re a complete beginner or an established veteran.
Features
EIN application. With the Standard and Full Service plans, your EIN application is included for free.
Business license applications. Swyft Filings offers licensing and permit research and application services available as a paid add-on.
Specialty documents. With the Standard and Elite plans, you’ll gain access to specialty documents like Operating Agreements and banking resolutions.
Free Basic plan. If you don’t need all the bells and whistles, Swyft Filings offers a basic service that provides everything you need.
Forming an LLC can be a dream come true – but only after you’ve completed all the paperwork. Our top three featured company formation services take all the hassle and headache out of getting your LLC up and running.
No matter how big or small your LLC venture might be, ZenBusiness has a plan that will work for you. Its plans pack a lot of value, including its free one. And its competitors don’t offer many of the features it includes for free, such as 100% Accuracy Guarantee and ZenBusiness Money Essential, with every plan.
If brand building is your main priority, consider Tailor Brands. This provider is known for its creative and marketing services and tools. From your logo to your website, it has you covered.
Or, if you’re a newbie just starting out and want a lot of guidance along the way, go with Swyft Filings. It offers a fast, intuitive signup process and an easy-to-use client dashboard.
Here are our top picks at a glance for New Jersey:
To form an LLC in New Jersey, you’ll need to follow all the requirements laid out by the Department of the Treasury. This includes choosing a unique name for your LLC, filing your Articles of Organization, registering for state taxes, and paying the required filing fee. You can do this on your own or use an LLC formation service to ensure you get everything filed properly.
What are the benefits of forming an LLC in New Jersey?
Forming an LLC in New Jersey allows you to separate your personal and business assets. It offers flexibility in management, allowing members to choose how the LLC is run and structured. Plus, New Jersey offers incentives and tax exemptions for starting new businesses.
How can I form an LLC in New Jersey for free?
No matter how you form your LLC, you’ll be required to pay the state fees charged by the Department of the Treasury. However, if you want to use an LLC formation service, we recommend ZenBusiness, as it offers a free basic plan to help you get started, as well as paid add-ons if you need them.
Which LLC formation service provides Registered Agent services?
Most LLC formation services offer Registered Agent services if you’d prefer not to do this yourself – basically, this involves being available for business communications during regular work hours. All three of our top vendors can act as your Registered Agent in any US state, but this will incur an additional fee. If you’re going to be available during regular business hours, you might find it more cost-effective to be your own Registered Agent, which is perfectly legal.
Suzanne has been a freelance writer and editor for 31 years, and has been writing online content since 2008. She holds professional certifications in editing and SEO strategy. She’s often been in the same desk chair as our Website Planet readers, needing to know what’s best and what’s best avoided. When she’s not testing and reviewing vendors, Suz is a professional artist as well as a volunteer therapy musician, playing the Celtic lap harp. She is a nature-lover who is often found walking the hiking trails near her home. She also enjoys time with her family, her grandchildren, and two cats.
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