Forming a Limited Liability Company (an LLC) in NJ is an excellent idea for small businesses, including sole practitioners—also known as solopreneurs. You get many of the advantages of owning a larger corporation but skip most of the rules, regulations and compliance issues that larger corporations face.
An LLC is a company entity that melds the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. The limited liability typically provides protections such as creditors not being able to reach the personal assets of the LLC owners. This way assets like your house and car are protected. Plus, an LLC looks a lot more professional than operating as sole practitioner.
Let’s look at how to form an LLC in NJ:
To form an LLC you’ll need a business name. You need to make sure that the name isn’t too similar to any other businesses on file with the New Jersey Division of Revenue & Enterprise Services. There are also some restricted words to keep in mind.
You can check the availability of the name you have chosen via the New Jersey Business Record Service business name database. Don’t forget that under New Jersey State law, an LLC name has to contain either the words 'Limited Liability Company' or the abbreviation 'L.L.C.'
Once you have decided on your LLC name and have verified that it’s available, you can reserve the name with a filing fee of $50. This allows you to make sure that the name cannot be registered by any other business for 120 days – allowing you plenty of time to file for your LLC.
To do this, you’ll need to complete and send form UNRR1 to the NJ Division of Revenue & Enterprise Services. You can do this online or send it in the mail.
New Jersey LLCs are required to register with the New Jersey Division of Revenue and Enterprise Services within 60 days. To form your New Jersey LLC, you need to submit a Public Records Filing for a New Business Entity with the State of New Jersey. Your filing must include the following information:
You can complete the preprinted form on The Division of Revenue’s website and send by mail or fax. You can also file online via New Jersey's online Business Formation Service. The filing fee is $125. There is an additional $3.50 if you file online and pay with a credit card.
If you are running your LLC from home, you may want to consider having a virtual office business address to protect your privacy and present a professional business image. Office Evolution, Hackensack can provide you with a prestigious NJ address in the heart of Bergen County in Northern New Jersey, close to New York City. And, you can have your mail forwarded, if you don’t want to pick it up.
Your New Jersey LLC requires a registered agent for service of process in the state.
Your registered agent is an individual or a business entity that accepts legal notifications on the LLC’s behalf if it is sued. This can be yourself, an employee, or a person hired outside of your business to act as your company’s a registered agent. The registered agent must have a physical street address in New Jersey.
New Jersey State law doesn’t require an LLC operating agreement, but you may wish to draw one up anyway to clearly lay out in writing the rights, duties, and responsibilities of the LLC’s members. It also lays out the companies’ activities and how company decisions will be made.
If you choose not to draw up an operating agreement, your business will be subject to the default rules in the New Jersey LLC statute.
Employer Identification Number (EIN): If your LLC has more than one member, it must have its own EIN, even if it has no employees. If your LLC has only one member, you do not need an EIN unless it will have employees or if you wish to have it treated as a corporation instead of a sole proprietorship for tax purposes. You can get an EIN online, free of charge, via the IRS website.
State Tax Registration: Irrespective of if you plan on your LLC collecting sales tax or having employees, you will need to register with the New Jersey Division of Revenue.
Once the Public Records Filing has been submitted, you may file a Business Registration Application, Form NJ-REG with the Division of Revenue – within 60 days.
Business Licenses: You may need a business license for certain types of businesses. You can check what, if any, licenses and registrations are required via the NJ License & Certification guide.
All LLCs operating in New Jersey must file a report with the Division of Revenue each year. The report must include details of your LLC’s name and address, all members or managers, and your LLC’s registered agent.
You must file the annual report online with the Division of Revenue each year on the month of the LLC’s formation. If you fail to file the annual report for two years in a row, the state can revoke or dissolve your LLC. There is a $50 filing fee to submit the report.
If your LLC was formed in a different state, in order to do business in New Jersey as an LLC, you will need to register with the State of New Jersey. To do this, you will need to file a Public Records Filing for New Business Entity, which carries a $125 filing fee.
A certificate of good standing from your LLC's home state will need to be included with your application.
At Office Evolution, Hackensack, we provide valuable services to many New Jersey LLCs and small businesses, including virtual business address services. Contact us to discuss your options and let us help you to come up with a plan for running your business using our virtual office solutions, including using a professional business address for your LLC formation.
At Office Evolution Hackensack, we provide virtual office, coworking, and private office solutions at our shared office center. We offer meeting rooms, offices, a shared workspace coworking lounge, a shared reception, a business address, and virtual receptionist services. We have many options and price points, and all terms are flexible. Plus, you become part of a community of like-minded professionals.
Whether you live in Teaneck, Bergenfield, Maywood, Teterboro, Hasbrouck Heights, Moonachie, Little Ferry, Rochelle Park, Dumont, Bogota, River Edge, New Milford, Hackensack, Englewood, Paramus, Tenafly, Fort Lee, and other communities nearby in Bergen and Essex counties, choosing Office Evolution Hackensack in New Jersey will help you be more professional, productive, and profitable.
Written by: Mark Dresdner
Office Evolution has more than 70 locations open, 140 units sold in markets across the country and is poised for further growth as the demand for affordable and safe, workspace close-to-home continues to rise.