Introduction
Choosing your company entity type is one of the first choices you’ll need to make when opening a business in New Jersey. The limited liability corporation (LLC) is one of the most often used business forms out of the many available.
A mixture of a corporation and a partnership is an LLC. Members of an LLC are not individually responsible for the obligations of the company, unlike corporations. However, LLCs may be created and maintained quite easily, much like partnerships.
You must register your LLC with the New Jersey Division of Revenue in order to form an LLC in the state of New Jersey. The guidelines and filing costs for establishing an LLC in New Jersey are determined by this organization. Additionally, if you formed an LLC in another state but wish to operate your business in New Jersey, you must register with this organization.
1. Choose a name for your LLC
Selecting a company name is the first step in creating an LLC in New Jersey. According to NJ law, the name you select must be distinct from existing business entity names that are listed with the Division of Revenue. This criterion helps to ensure that clients and the general public won’t mistake your company for another.
Do a preliminary name search on NJ’s Business Name Database to make sure the name of your LLC is accessible. If the name is available, you can use an Application for Reservation of Name to reserve it for up to 120 days. The name is held by this reserve until your certificate of formation may be filed. Remember that the Division of Revenue does not assess the trademark compliance of names. In the end, it’s up to you and your business lawyer to make sure that the name of your LLC doesn’t violate the rights of any other companies.
2. Choosing a registered agent
Every LLC that conducts business in New Jersey is required to appoint a registered agent to receive business correspondence on the LLC’s behalf. A person or a business may serve as a registered agent for a New Jersey LLC. If your company is sued or receives a legal notice from the government, the registered agent will be among the first to let you know.
As long as they are a resident of the state, an individual may act as a registered agent while incorporating an LLC in New Jersey. A management or member of the LLC is included in this. As an alternative, a firm may designate a New Jersey-licensed company to act as its registered agent. Your NJ LLC’s registered agent must have a physical address in New Jersey, also known as the registered office.
3. Get a business license
To conduct business in New Jersey, some businesses must have a business license. The majority of these businesses operate in highly skilled or regulated industries including construction, food service, and childcare. You may see if your small business must obtain a license by consulting the list of industries maintained by New Jersey’s Business Action Center.
You must register your company’s trade name with the Division of Revenue if it differs from the legal name of the firm. Such trade names are known as “alternative names” in New Jersey. The terms “fictitious business name” and “DBA” (or “doing business as” name”) are used in other states. The Division of Revenue’s Trenton, New Jersey office accepts applications for alternate name registration online, via mail, or in person for a $50 cost.
4. File your formation certificate
When establishing an LLC in New Jersey, the next and most crucial step is to submit your certificate of incorporation to the NJ Division of Revenue. The articles of organization, also known as the certificate of incorporation, are what provide you the legal right to conduct business as a New Jersey LLC. Although a physical copy of the form may be requested, submitting your certificate of formation online is the quickest method. The certificate of formation must be filed for a price of $125.
5. Create an LLC operating agreement
In contrast to its neighbor New York, New Jersey does not mandate the existence of an LLC operating agreement. However, even if it isn’t legally necessary, we advise that each LLC establish an operating agreement in writing. The operating agreement, which is created when creating an LLC in New Jersey, establishes the guidelines for your LLC’s daily activities and shields co-owners from disagreements.
6. Acquire an EIN
Your LLC may require an employment identification number to submit federal taxes (EIN). LLCs with workers or numerous owners, as well as those taxed as corporations for federal tax reasons, are required to get an EIN. An EIN is also required if you want to apply for financing, create a company bank account or credit card, or both.