HOW TO START AN LLC IN NEW JERSEY
Creating an LLC in the state of New Jersey is a fast and easy process. You’ll begin by coming up with an original name that complies with state guidelines and then registering your business. Next, you’ll file for an EIN, set up to hire and pay employees legally in the state and to collect sales tax. Once these tasks are complete, you’ll be ready to open your doors for business in the state.
Naming the LLC
- When you create an LLC in New Jersey, you need to follow some specific guidelines for your name; you’ll need to adhere to each of these rules for your LLC to be a legal entity. In addition to following legal guidelines, you’ll also need to create a name that suits your business and industry well and that you feel comfortable using. No matter what you decide to call your new NJ LLC, the name needs to adhere to these guidelines, which are current as of 2017:
- The name chosen has to include either one of two abbreviations, “LLC” or “L.L.C” or have “Limited Liability Company spelled out in full
- Some words are restricted and may require you to file additional paperwork to use
- New Jersey does not allow you to use words that are already claimed or in use by state or Federal entities in your LLC name.
- The name needs to be original and not already being used by another LLC in New Jersey.
Is the LLC Name Available in New Jersey?
- The name chosen for an LLC in New Jersey needs to be original; you can’t use a name that is already in use or claimed by another entity. You can easily search online to determine if the name you want is available by visiting the state’s official business site and then searching for the name you are considering.
Is the Domain Name Available?
- If you want to create a website using your new LLC name, you need to research availability before you finalize your business entity name. If the domain you want is available, purchase it to secure it, even if you are not ready to use it yet; this will prevent others from buying your name and using it. The “.com” version is a must, and you should consider securing other versions, depending on your industry and marketing preferences; “.net” and “.co” may also be of interest.
Select a Registered/ Statutory Agent
- You can have a registered agent to represent your new LLC; they can receive process notices, government correspondence and act as a contact person for your new LLC business. Incfile offers FREE Registered Agent service for the first year with every package or as a $0 standalone service.
Who can be a Registered Agent in New Jersey?
- The registered agent you choose for your business needs to either be a residence of the state of New Jersey or be authorized to work in the state.
Filing Articles of Organization
- You’ll need to file the Articles of Organization for your new LLC business; in New Jersey, there is a non-refundable fee of $125 to do this; if you need expedited service, you can pay an additional $50 to have your paperwork processed the same day you file it. For an online form to file your Articles of Organization, visit the New Jersey business formation portal.
Create Operating Agreement
- An operating agreement is not required to form an LLC in the state of New Jersey, as of 2017.
RUNNING YOUR BUSINESS
Getting Your EIN
- An EIN is an employee identification number, issued by the Internal Revenue service. Sometimes it is also called a Federal Tax Identification Number. It’s a unique number issued to each business. You’ll need an EIN to open a business bank account; file Federal and State Taxes; and hire employees.
- Before you get your EIN make sure your new business has been properly formed before applying and be wary of paid sites. EINs are free direct from the IRS.
- The easiest way is to apply online for an EIN. Note, the IRS website has office hours, and is only available Monday through Friday, 7am to 10pm. Yes, we also agree this is one of the most ridiculous things we’ve ever seen. You can call 1-800-829-4933, between 7am to 7pm of your time zone, Monday to Friday. Snail mail: You can download the form and mail it in.
Keeping Business and Personal Accounts Separate
- Get a business bank account for your business. This will help you protect your personal assets from potential creditors and lawsuits, and will also make life a lot easier come tax time.
- Get a business credit or debit card. This will help you keep your expenses separate and easier to track.
- No matter what business you run, accounting software and processes is a must for any small business. If you have an accountant, ask them which software they work with and recommend. A good accounting system is necessary to track income and expenses, so you can easily see if you’re making money and make filing income taxes so much easier.
- Always try and find something that will: sync with all of your bank and credit card accounts automatically – not just downloads, but auto sync; auto-match vendors, customers and other accounts; and let you accept credit cards and ACH drafts with ease. This can be applied for online, as can unemployment.
Will the LLC Have Employees?
If you want to hire employees for your new LLC in New Jersey, you’ll need to take some specific steps first, including
- Obtain Unemployment Insurance/Workers Compensation Insurance for employees
- Register for state sales tax if you are selling goods or services that are taxable in New Jersey
- Complete all employee paperwork for each employee, including proof that the employee is eligible to work in the United States
- Register to withhold income taxes from paychecks
- Report new hires to the state
- File for permits for your local government or city, state and the federal government as needed
- Acquire or update licenses for the business and any staff members that require it
- Secure general liability insurance to protect the LLC from lawsuits and injuries
- Post all required OSHA and employee posters and documents
KEEPING YOUR LLC COMPLIANT
- An annual report is not required for your New Jersey business, but you can to request a Certificate of Good Standing, this can be done online. You may also need to renew permits, licenses and other paperwork on a regular or annual basis, depending on what your industry or business requires.
ABOUT HOW TO START AN LLC
I'm an entrepreneur myself. When talking to others who want to start their own business, they often get wrapped up in the nitty gritty of paperwork and forming the company. They forget that what really matters is customers, sales, and profit. That's why I created How to Start an LLC.org: a simple resource and guide so you can spend less time on forming your company, and more time on building it.
My lawyers want me to remind you that I'm not a lawyer and that I'm completely unqualified to offer legal advice. This site is meant to serve as a reference for you on your journey. If you have questions or concerns, please contact a qualified lawyer (or accountant) to help you. Also, as a general rule, never take random legal advice on the internet.