How to Form an LLC in New Jersey
Introduction
Congratulations, you’ve decided to form an LLC in New Jersey! It’s a wise decision. LLCs are one of the most flexible business structures available, offering protection from personal liability while also providing pass-through income taxes. And as with any other state, forming an LLC in New Jersey is easy to do online. All you need to do is follow these steps:
Determine your business structure
The first step in forming an LLC is to determine which type of business entity you want to be. The most common choice is the limited liability company (LLC). This structure offers the best of both worlds: it’s a pass-through tax entity, meaning that your profits and losses are not taxed at the business level but rather on your personal income tax return; it also has less formalities than a corporation and more flexibility than a partnership.
Choose a business name
Choose a business name that is not already in use in the state of New Jersey. This can be difficult because there are over 4,000 businesses with names that begin with “the” and even more than this number using “the.” You may want to choose a name that is not so common but still easy for people to remember.
It’s also important to choose a business name that does not offend or confuse potential customers or clients. If you plan on selling products or services on the Internet, make sure your domain name doesn’t infringe upon any other company’s trademarked names by using an internet search engine like Google (www.google.com). Remember: if someone else has already claimed your desired domain, there’s nothing stopping them from suing you if they feel their rights have been violated! In addition, do not select a confusingly similar name as another existing business; doing so could result in costly legal battles over infringement issues down the road when someone finds out about your choice of moniker!
Check availability of your proposed name
Before you commit to a name for your LLC, it’s a good idea to check whether or not the name is available in the state where your business will be registered. The process for doing this varies from state to state. Here are links to some of the most popular states:
File articles of organization with the New Jersey Division of Revenue and Enterprise Services
The next step is to file your articles of organization with the New Jersey Division of Revenue and Enterprise Services. Before you can do this, though, you’ll need to fill out the appropriate forms and pay a filing fee. Afterward, you receive an acknowledgement receipt from the state agency confirming that they’ve received your form and are expecting payment. Finally, once you’ve paid up, filed all forms correctly, and received confirmation of their receipt—you’re ready for your EIN!
Once your LLC has been formed in New Jersey (and received an EIN), it’s time to get down to business: filing taxes for yourself as an individual entrepreneur or for your company as a whole entity. You’ll use Form 5500-EZ if you’re filing as an individual; otherwise use 5500-C/R/S depending on whether or not you have more than one member in addition to yourself (which would make things complicated).
File a business name certificate
- File a business name certificate. This is a simple, one-page document that you must file with the New Jersey Division of Revenue and Enterprise Services within 30 days of forming your LLC. It costs $125 to file, so make sure to do it as soon as possible!
- File articles of organization. Once you have filed your certificate, you can then file articles of organization (the official paperwork) with the Secretary of State’s office online or by mail at:
New Jersey Department of Law & Public Safety
Division of Revenue and Enterprise Services
Commercial Registry Unit 1 – Business Entities Section
Obtain an Employer Identification Number (EIN)
You will need an Employer Identification Number (EIN). You can apply for an EIN online, but be sure to have the following information available:
- Business name and address. The IRS requires your business to have a name, so make sure that everything on your LLC documents is consistent with your chosen moniker. Once you’ve picked a name, it’s best practice to keep it consistent throughout all of your paperwork.
- Articles of organization or state filing number. If you’ve already obtained a business license through the state, then this should be easy; simply enter in the appropriate number (find yours here). If not, then go ahead and file one now—it’s free! Just remember that they take some time before they become active, so don’t wait until after you’ve formed your LLC to get started on this step!
Create a NJ LLC operating agreement
Forming an LLC is a fairly easy process, but it’s important to remember that you can’t just skip over the paperwork and move on to making money. You’ll need to create an operating agreement for your LLC, which is essentially a contract between the members of your company. This document outlines everyone’s roles and responsibilities within the company, as well as how decisions will be made.
The operating agreement should be in writing and signed by all members of the LLC—even if they’re not present when it’s being read aloud at formation. It should also be kept in a safe place with other important records like tax returns and financial statements. The names of those who sign are noted on page one of your Certificate of Formation (or Articles).
You can form an LLC in New Jersey online.
If you are a business owner who is ready to take the plunge into starting an LLC, there are four steps that need to be taken:
The first step is filing your Articles of Organization (the document that establishes your LLC). You can do this yourself by completing the New Jersey Department of State’s online application for corporations and limited liability companies. However, we recommend that you consult with a lawyer or other professional before doing so. The second step is preparing your operating agreement (the document outlining how the LLC will operate). This document must be prepared by someone who has been admitted as an attorney in New Jersey or one who has been admitted as an agent under Rule 6:5-1(e) which governs partnerships and limited liability partnerships. You may choose to prepare your own operating agreement or use ours by clicking here! The third step is obtaining tax identification numbers (TINs) for yourself and any employees who will receive paychecks from the company. Finally, if you decide that you want formal recognition within the state’s legal system—and if not all of these requirements seem daunting—you should seek proper advice from someone licensed in New Jersey before proceeding further!
Conclusion
After you form your LLC, you can start operating it. The first step is to apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). Your EIN will serve as your business’s identification number with the IRS, so don’t forget! You should also create a New Jersey LLC operating agreement that outlines how you plan on running your business. These documents are critical when it comes time to file taxes or protect yourself against lawsuits brought by disgruntled former employees.
