How To Form an LLC in New Jersey

If you are starting a business in New Jersey, you may want to organize it as a limited liability company.If a company has legal or financial problems, it can be formed into a limited liability company under New Jersey law, which has similar tax treatment and ease of operation.Many of the benefits of a corporation can be found in an limited liability company.

Step 1: You can come up with a name that reflects the products or services you offer.

You have to include the words "Limited Liability Company" or the initials "LLC" in your name.

Step 2: Ensure your name is distinct by searching the NJ business name database.

Any other name currently used in the state must be distinguishable from yours.The system is free.You can call the NJ Division of Revenue and Enterprise Services if you need help.You will be charged a fee for this assistance.When you file your formation documents online, name availability checks are done as well.

Step 3: You should reserve your name.

You can reserve your name by filling out a paper form and mailing it to the NJ Division of Revenue, Corporate Filing, PO Box 308, Trenton, NJ 08You can fax it to the same number.There is a $50 filing fee with your reservation form.Your name will be reserved for 120 days if you plan on forming a limited liability company in New Jersey.

Step 4: A registered agent should be appointed.

All limited liability companies in New Jersey must have an agent for service of process in the state.The agent is a person who is authorized to do business in the state.The agent needs to have a street address in New Jersey.

Step 5: Paying the filing fee is necessary to file certificates of formation.

You can form an limited liability company in New Jersey by answering a few questions and paying the $125 filing fee.The fee for forming a nonprofit company is $75.The form must include the name and address of your registered agent.The names and addresses of all members of the company must be included.Print the required forms and mail them to the Division of Revenue if you don't want to file online.

Step 6: An operating agreement should be prepared.

Although state law doesn't require an operating agreement, having one in writing ensures all the members of your company understand their rights and responsibilitiesYour operating agreement governs the relations of your company to each other and to the company itself.The company's activities, how they are conducted, and how decisions are made are all described.Without an operating agreement, the default rules set out in the New Jersey statute will apply to your business.Make sure you understand how the rules of the state will affect your business by reading the law.

Step 7: You can file annual reports.

Each year, the Division of Revenue in New Jersey requires the filing of a report by all limited liability companies.The report must include your name, address, and registered agent.A $50 filing fee is needed for each report.

Step 8: Obtain an employer identification number from the IRS.

If you want to open financial accounts in the name of your business, you need a federal EIN.The same way you use your Social Security number, the EIN is used for your business.It is a unique identification number for your company that can be used to open bank accounts, apply for loans, or file taxes.

Step 9: You can register with the state using your EIN.

All businesses need to register for tax purposes.Most businesses have a federal EIN, and New Jersey uses that number for state tax identification as well.You can register with the state if you don't have a federal EIN.The tax form can be filed at the same time.If you choose to file separately, the tax registration must be completed within 60 days.

Step 10: State or local business licenses are necessary to operate a business.

Some businesses need additional licenses, certifications or permits.You could be charged a fee for these licenses.If you want to open a beauty shop, you have to pay a fee.