How to Start Your LLC in New Jersey

This is a step-by-step with the formation procedure of the LLC in New Jersey, including the selection of a compliant business name, required documents, and understanding the tax liabilities, and maintaining a good relationship with the state.

1. Name Your New Jersey LLC

One of the first things you will do is to name your LLC. Your business name is your brand, it creates the first impressions and has to comply with the legal requirements that have been established by New Jersey state.

It is necessary to spell out the purpose of your business first before settling on a name. Having an idea of what you will sell or the services you will provide, as well as who will be your customers, will assist you in coming up with a name that will reflect your brand. Most business owners also ask the advice of their colleagues or friends when they want to know how the name sounds, as well as how easy it is to remember.

After eliminating several options, study them out. Search the internet to understand whether such businesses have already been set up, also verify availability of identical domain names and also monitor social media sites to ensure that no confusion arises with other brands. Although online business name generators are able to trigger ideas, they are not supposed to substitute intelligent decision-making.

New Jersey LLC Naming Rules

According to the law of New Jersey, your LLC name:

• Add Limited Liability Company or an acceptable abbreviation e.g. LLC or L.L.C.
• Be unique among all other registered business names in the state.
• Do not use words that indicate that you are affiliated with a government agency.
• Avoid the use of restricted names such as bank, insurance, university and others unless approved by the state.

Once the availability has been established by the New Jersey Division of Revenue.

Also, you need to check the US patent and trademark office (USPTO) database to make sure that your name is not already trademarked on a federal level.

As opposed to most of the states, name reservations in New Jersey are now done by mail. You will have to save the name reservation document and send it by mail to:

NJ Division of Revenue
P.O. Box 308
Trenton, NJ 08646

Doing Business As (DBA) / Other Name in New Jersey

Once you have formed your LLC, you might desire to have a different name to brand with or to expand. In New Jersey, an alternative name is referred to as a DBA.

Your LLC has the option of using an alternative name to use during the operation of more than one brand without establishing the legal entities. As an example, a company called JJ Waffles LLC can sell products under the name Muffins of JJ using a different name. This also enables you to open bank accounts and receive payment in the alternative name.

Online registration of the alternative names is done via the New Jersey Department of Revenue and Enterprise Services. The registration lasts five years at a filing fee of $50.

2. Appoint a Registered Agent

Any New Jersey LLC will have to appoint a registered agent who will receive legal notices, tax correspondence, and other important government documents.

An agent to New Jersey should:

• Be at least 18 years old
• Have a physical address on the street in New Jersey
• Be present at regular working hours
• Get the power to conduct business in New Jersey in case a company is the agent

Although you can become your own registered agent, most business owners opt to use a professional service as it is more privatized, and it brings about compliance.

3. Select Management Structure of Decide on Your LLC

Member-managed and manager-managed New Jersey LLCs are both available. In case the Certificate of Formation does not indicate any management structure, the LLC is deemed to be member-managed.

With a member-managed LLC, all owners are involved with day-to-day activities and decisions. This arrangement is satisfactory with small businesses in which owners are actively engaged.

In manager managed LLC, managers are the individuals who are tasked to manage the LLC, and they can be members of the LLC or not. This is the alternative that is taken when there are owners who want to be passive investors.

The structure you will use must be according to your long term plans on how you are going to carry out the business.

4. Register a Certificate of Formation in New Jersey

Your LLC is to be officially established by submitting a Certificate of Formation to the New Jersey Division of Revenue and Enterprise Services.

New Jersey has a single business registration system which include all types of entities. Having performed a name availability search, choose NJ Domestic Limited Liability Company (LLC) and fill in the information required as follows:

• LLC name
• Principal business address
• Registered agent details
• Business purpose

Contact Information Division of Revenue, New Jersey

Online Portal: New Jersey: Business Formation Services.

Mailing Address:
P.O. Box 252, Trenton, NJ 08646

Office Address:
33 W. State St., Trenton, NJ 08608

Phone: 609-292-6748

5. Writing an Operating Agreement

New Jersey does not have a legal requirement of the presence of an Operating Agreement but its presence is strongly encouraged, even in a single-member LLC.

An Operating Agreement establishes a percentage of ownership, management power, voting, distribution of profits and the process of incorporating or dissolving a member. It also enhances protection of liability and is usually demanded by banks and investors.

The templates can be found online; however, to avoid misunderstandings and expensive litigations, one can seek the advice of an attorney regarding his/her Operating Agreement.

6. Register a Employer Identification Number (EIN)

The IRS issues an EIN and this is your LLC federal tax identification number. It is mandatory whenever your LLC has more than one member, employees are hired or when the entity chooses to be taxed in a corporate fashion.

The IRS provides a free application program of EIN online. The application should include a responsible party and this is a person who has control over the finances of the business.

7. Get Necessary Licenses and Permits

New Jersey does not have a general statewide license on business. Nevertheless, a lot of businesses have to acquire industry-specific or state-level or local municipality licenses.

Any business that deals with the taxable commodities or services should take a certificate of sales tax. Business.NJ.gov Licensing & Certification Guide is the most helpful source of finding needed permits and licenses.

Failure to operate with relevant licensure may attract fines, penalties or even closure, and it is therefore important to ensure that they check the requirements early enough.

8. Learn Your New Jersey LLC Tax Status

New Jersey LLCs are by default considered to be pass-through taxwise. It implies that the LLC does not pay federal income tax, and the profit and losses are allocated to the personal tax returns of the owners.

Single-member LLCs are subject to taxation as sole proprietorships, and multi-member LLCs are subject to taxation as partnerships unless they make an alternate choice.

LLCs can choose to be taxed as a C-Corporation or S-Corporation in case it has tax-benefits. The state New Jersey also has its own taxes, such as the Gross Income Tax and Corporation Business Tax based on the individuals and the LLCs that are taxed as corporations respectively.

Other Continuing Requirements

Once you have established your LLC, you ought to open a business bank account, apply and get a business credit card, and get the relevant insurance cover. It is very important to maintain the separation between personal and business finances in order to protect liability.

The NJ LLCs are obliged to submit Annual Report annually by the last month of the anniversary month of the formation. The filing fee is $75 dollars and in case of failure to file, it may lead to penalties or dissolution.

New Jersey LLC FAQs