Cost to Form an LLC in New Jersey – How to Start an LLC 2022

Cost to Form an LLC in New Jersey – How to Start an LLC

Starting a business can be an exciting yet daunting task. Our guide below will simplify the process and walk you through the associated costs with forming an LLC in New Jersey.

There are several business structures you have to choose from when starting your New Jersey business. A limited liability company (LLC) is a popular choice. An LLC provides legal protection of the owner’s personal assets should the business find itself in financial trouble.  

Each state has unique costs and steps for LLC registration and forming your new business entity. Before taking steps to register your business, it is helpful to understand the associated costs of forming an LLC in NJ. 

New Jersey LLC Costs

We’ve outlined the associated NJ LLC fees below to help you get started with your new business venture. 

New Jersey LLC Filing Fees

Registering your LLC in the state of New Jersey can be done through the NJ Department of the Treasury’s Division of Revenue and Enterprise Services via their online portal. After filling out the required forms, you will be required to pay a $125 filing fee

Reporting Requirements For New Jersey LLC Owners

New Jersey LLC owners are required to file an annual report. Each year you will be required to pay a $75 fee to the Division of Revenue and Enterprise Services with your accompanied report. 

You can file your annual report online by filling out the form on the portal[1]. Along with the $75 fee, you will provide information such as your yearly earnings. 

Registered Agent Fee

All states, including New Jersey, require LLCs to have a registered agent. A person or entity with a physical mailing address who is authorized to do business on behalf of the company. 

In New Jersey, when you register your business, you will be required to provide a name and address for the registered agent. You can act as your own registered agent or hire a company that offers this service and acts on your behalf. The fees vary depending on the company and can be anywhere from $50-$100 annually. 

Registering A Foreign LLC In New Jersey 

A foreign LLC is a company that will be doing business in states other than the ones it is registering in. New Jersey foreign LLCs are registered using the same portal as standard LLCs; however, the fee is $125. After completing your registration and making the payment, you will get a Certificate of Authorization[2]

Business Licenses & Certifications

Some business types require professional or occupational licenses to operate. For example, if you want to run a therapy or counseling business in NJ, you must be a licensed therapist. To find out if your business requires additional information or proof of license/certification, you can use the state’s official website[3] and search for your business type. 

Taxes

All businesses and individuals in the United States are required to pay taxes. If you operate an LLC in New Jersey, the taxes you must pay depend on the type of business you operate. The schedule varies as well (monthly, quarterly, annually). Required taxes include sales tax, use tax, payroll tax, federal income tax, and more. 

The amount of tax you pay depends on many factors, including revenue and write-offs. We recommend you seek advice and guidance from a qualified accountant. 

Additional LLC Filing Costs

There may be additional costs other than the ones listed above as part of your LLC formation. Here are some of them:

Application For Reservation OF NAME 

In New Jersey, you must file an application to reserve your business name. You can find the form online here: UNRR-1[4] and pay the filing fee of $50  

“Doing Business As” (DBA) Name

If you wish to operate your NJ LLC under a different name than the legally registered name, you must register a DBA (Doing Business As). There is a $50 fee for every DBA you register. Business Domain Name & Website

Attorney Fees

Some business owners choose to hire an attorney to assist them with forming their company and providing ongoing legal counsel. The fees associated with attorneys vary greatly depending on the firm and the services required. 

Tax ID Number (EIN)

There are no fees associated with obtaining an EIN (Employee Identification Number); however, there are companies who will do this for you. If you choose to hire a company versus doing it yourself, you will pay a service fee.

The Top 2 New Jersey LLC Services 

ZenBusiness

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ZenBusiness provides a variety of services to those seeking to form a business, including an LLC, in New Jersey. A single source for all your filing needs and more, for a nominal fee, they will register your business and fill out the necessary forms on your behalf, simplifying the entire process. Additionally, their services will assist you with the ongoing management of your business, filing your annual reports on your behalf, for example.

Because every business is different and therefore has different needs, ZenBusiness has conveniently broken out its services into packages. Their starter plan costs $49 and includes the basics owners need to form their LLC and register it with the state of New Jersey. Additionally, it includes annual report filing services. Their most premium package is $299 and includes many additional services. 

Customer service is a core benefit to what ZenBusiness offers its customers. They have a team of experts who will take the hassle out of registering and managing the state-required documentation, so you can focus on growing your business.

LegalZoom 

LegalZoom is another option for you to consider to assist you with forming your New Jersey LLC. LegalZoom’s formation services are a bit higher than ZoomBusiness, starting at $79.

LegalZoom is an established brand with over 20 years in business. While ZoomBusiness has a more competitive price, LegalZoom offers legal services as part of their overall mix.

Just like ZenBusiness, LegalZoom’s services are broken up into packages. So you can select the number of services you require. Each package offers services that you may need to start or run your business. 

When selecting the package, be sure to select the one best suited to your needs. No need to pay for services you won’t utilize.

Start An LLC In New Jersey With These Six Easy Steps

  1. Name of the New Jersey LLC
  2. Pick a Registered Agent
  3. Apply for the Certificate of Formation 
  4. Registering the Business 
  5. Come up with the Operating Agreement
  6. File for an EIN

Step 1: Select A Name For Your New Jersey LLC

The first step to forming an LLC in New Jersey is to select a name. If you are going to be doing business under your legally registered name, picking the right one is important. As a business owner, you also have the option to operate under a different name than your legally registered name. In this case, you would need a DBA (Doing Business As). 

Whether or not you will be using your LLC name, you will need to ensure that it is available in New Jersey, is not a registered trademark for the same products or services you will be offering, and meets the state’s naming requirements.

If you are going to be operating under your legally registered name, you’ll want to select a name that is memorable, aligns with your company’s brand, and is unique. Another important item for consideration is a domain. To make it easier for people to find you online, you want a URL that matches your business name. Check to make sure your name is available for sale as a domain before registering your LLC.

Step 2: Pick A Registered Agent 

 Every business entity in New Jersey needs an assigned registered agent. You can be the registered agent for your company, or you can hire an outside business to serve as your registered agent. 

The registered agent needs to be 18 years or older and must have a physical address in New Jersey. They should also be available during normal business hours in case there is the need to accept service of process. 

Step 3: Apply For The Certificate Of Formation 

Once you have selected a name and registered agent, you are ready to file your certificate of formation. This document is filed with the New Jersey Division of Revenue and Enterprise Services.  There is a $125 filing fee. The necessary form is available on their portal[5] and can be filed online or by mail. 

Step 4: Registering The Business 

Next, you will register your limited liability company with the New Jersey Division of Revenue and Enterprise Services. This includes business entity registration and tax filings setup. 

You have 60 days to register your LLC once you start your company. Once complete, your business will receive a tax identification number. 

The filing can be done by mail or online[6]. The choice is yours. 

Now onto the operating agreements. 

Step 5: Come Up With The Operating Agreement 

The LLC operating agreement is quite important for your business structure. While not mandatory in New Jersey, it is considered good practice to have one.

The operating agreement is a legal document that outlines your business structure, business name, ownership, and overall operating procedures. 

Having an operating agreement will help alleviate potential issues down the line when the business is up and running.

Step 6: File For An EIN

If you will be hiring employees, the final step is to get an employer identification number or EIN. This is a vital number, issued by the IRS. This number aims to aid with the reporting of your tax. 

You can think of it as your business’s social security number.

Conclusion

Starting a new company is an exciting time.  The process to form an LLC in New Jersey is affordable and easy, however, there are many companies available to help you with the process if you prefer not to do it on your own. Best of luck with your new adventure!

Frequently Asked Questions (FAQs)

Do I need to pay for my NJ LLC every year?

There is an annual report fee of $75. Check out the New Jersey portal[7] to find out how to file your annual report, and what information you will need to include.

Is it cheap to get an LLC by yourself or through a company?

The least expensive way to register and set your LLC up is doing it yourself. However, people who enjoy the convenience of someone else taking care of the work for them will find using an outside company to be their best option.

Should I hire an attorney for LLC formation?

It depends on your needs. If you have legal questions pertaining to forming an LLC, it is recommended that you seek counsel from a qualified attorney.

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  1. Njportal.com. (2021). State of New Jersey Online Annual Report. [online] Available at: https://www.njportal.com/DOR/AnnualReports/Business?sessionType=AnnualReport [Accessed 30 Nov. 2021].
  2. ‌Njportal.com. (2021). State of NJ – Online Business Entity Filing. [online] Available at: https://www.njportal.com/DOR/BusinessFormation/Home/Welcome [Accessed 30 Nov. 2021].
  3. ‌Nj.gov. (2021). Business.NJ.gov | Licensing and Certification Guide. [online] Available at: https://business.nj.gov/licensing-and-certification-guide [Accessed 30 Nov. 2021].
  4. ‌Njportal.com. (2021). State of New Jersey Business Charter Amendments. [online] Available at: https://www.njportal.com/DOR/BusinessAmendments/ [Accessed 30 Nov. 2021].
  5. ‌Njportal.com. (2021). State of NJ – Online Business Entity Filing. [online] Available at: https://www.njportal.com/DOR/BusinessFormation/Home/Welcome [Accessed 30 Nov. 2021].
  6. ‌Njportal.com. (2021). State of New Jersey Online Tax/Employer Registration. [online] Available at: https://www.njportal.com/DOR/BusinessRegistration/ [Accessed 30 Nov. 2021].
  7. ‌Njportal.com. (2021). State of New Jersey Online Annual Report. [online] Available at: https://www.njportal.com/DOR/AnnualReports/Business?sessionType=AnnualReport [Accessed 30 Nov. 2021].