With nineteen Fortune 500 companies hailing from New Jersey, it’s no surprise why many people like you aspire to conduct business within the state. However, to form NJ business entities, there are expenses you must be wary about. From the registration process up to yearly report filings, let our trade experts help you determine all NJ LLC annual fees in this post.
Formation Costs for an NJ LLC
Business Name Reservation
Before you file your LLC formation documents, you must select a unique business name to represent your company’s brand. This requirement must not be similar to any business actively operating within New Jersey.
To ensure that your New Jersey LLC won’t face trademark lawsuits, our team suggests checking with the state’s business name database before submitting any formation documents.
Once you confirm that it’s available, you can proceed in filing your Certificate of Formation. However, if you’re not yet keen on forming your business entity right away, you can reserve the LLC name within 120 days, which costs a filing fee of $50.
Operating Agreement
As a newly formed LLC in New Jersey, you’ll need internal legal documents like an operating agreement to outline the structure of your limited liability company and highlight provisions about management decisions and rights [1]. Written operating agreements can be internally curated upon New Jersey LLC formation without any charges.
However, considering the important content of an LLC operating agreement, seeking help from a law firm or other websites that offer legal advice and proper guidance to create this document is a wise business move. But of course, this service will incur an additional fee depending on the scope of your request.
Public Records Filing
To officially register its business structure, a New Jersey LLC must go through public records filing. By submitting Form NJ-REG along with a $125 state filing fee to be paid to the Division of Revenue & Enterprise Services, your company will obtain a certificate of formation. Always remember, as a new entity, you must submit this form within 15 business days.
Besides mail submissions, this document can be filed online through Business Registration Application. Regardless of all business types, the filing process of formational requirements cannot be skipped.
EIN Registration
As you may already know, commencing business often involves opening a company bank account and hiring employees, which requires acquiring an Employer Identification Number (EIN) or Federal Tax ID Number from the IRS.
On top of that, this nine-digit identification is used for tax purposes and allows a New Jersey LLC to be served proper notices and demands through your registered agent. Requesting EIN for New Jersey LLCs has no charges if you do the legwork, but there are bound to be additional fees if applied through LLC formation service providers.
Registered Agent Service
When you form an LLC in New Jersey, one of the key roles dedicated solely to receive demands and notices on your behalf is your elected registered agent service provider. Your LLC’s registered agent could be an individual or another company as long as they qualify from the standards set by the state.
If you’re at a loss in handling these time-sensitive documents, our experts highly recommend hiring commercial registered agent services when you form an LLC in New Jersey. Not only does it secure the privacy of your business address, but it also ensures that you’ll get all notices in a timely manner. Prices vary depending on the scope of your chosen service package.
Foreign LLC Registration
Like domestic companies, filing Form NJ-REG is one of the first steps to register a foreign LLC in New Jersey. Upon this submission and payment of the $125 one-time processing fee, you’ll obtain a business certificate granting you perks of operating within the state.
Other Taxes
One of the most crucial NJ LLC annual fees you must settle to maintain good standing with the state is the consistent payment of your New Jersey LLC taxes. Although the state doesn’t impose franchise tax, specific taxes are granted depending on your LLC’s purpose and current business environment.
New Jersey LLCs are filed as pass-through entities, so the company isn’t obliged to file for corporate tax returns. Instead, the owners and members are taxed through personal income tax returns. In addition to that, keep in mind that a single-member New Jersey LLC is taxed as a sole proprietorship.
(To help you through the formation process, you can also consider hiring outstanding online incorporation companies here)
New Jersey LLC Annual Fees
Annual Report
By the end of your LLC’s anniversary month, you need to file an annual report to the state of New Jersey with a processing fee of $75 every time you submit it. You can accomplish this procedure online through the Division of Revenue website.
New Jersey LLC’s annual report serves as the document where the government can check your company’s information, including all business information, filings, tax, insurance, and members involved with operations.
Failure to submit a New Jersey LLC annual report twice in a row will revoke your right to operate and incur penalties.
Minimum Partner Tax
On top of specific taxes you need to pay, LLCs with two or more owners must settle a Minimum Partner Tax of $150 per member every year.
(For a complete view of LLC expenses, you can also check our page about – How much does it cost to form and run an LLC?)
FAQ
Do I need to renew my LLC every year in NJ?
No, you don’t need to renew your LLC every year in NJ. However, New Jersey LLCs are obliged to submit annual reports and pay taxes every year to maintain good standing. Failure to fulfill this obligation could result in the administrative dissolution of your limited liability company (LLC) and being penalized.
Conclusion
While building a business requires more than financial capability, learning how to handle NJ LLC annual fees meant that you already ticked off one box on the long list of things you need to do as a new business owner. Should you find yourself struggling, our team suggests seeking help from professional services with extensive industry experience to guide you accordingly.
