A limited liability company (LLC) is any type of business owned by a private entity. This means the management of the company is under its founders and not beholden to shareholders. New Jersey is a highly business-friendly environment and a hub for local and global markets. If you’re a business owner or an entrepreneur planning to move your business to a new place, New Jersey is the place to be. This article details a step-by-step guide to starting an LLC in NJ and helps you get started!
Step-by-Step Guide to Starting an LLC in New Jersey
1. Choose Your LLC Name
Pick a unique name that isn’t similar to any existing business in New Jersey, or one that is not used by other businesses. New Jersey has a set of naming requirements that you’re required to comply with. Some of these requirements include:
- Your company name must contain the phrase ‘’limited liability company’’.
- The name you select should not mislead the public into thinking the business is associated with government agencies such as ‘’FBI’’ or ‘’State Department’’.
- Other names may need special approval or licensing from a state department such as insurance, medical, bank, engineer, etc.
After choosing a suitable name, reserve your business name. This ensures nobody can come and claim it when you’re preparing your documents for filing.
2. Choose a New Jersey Registered Agent
After picking a name, the next step is to select a registered agent. As the official point of contact for all LLCs, an individual or a business entity must be designated as the registered agent. An LLC registered agent in New Jersey is a company or a person who accepts state notices and legal mail on behalf of your business.
For an LLC in New Jersey to accept legal documents such as court summonses, tax documents, and service of process (delivery of legal documents), a registered agent must be willing and able to do so. Here are the requirements that a registered agent must have in New Jersey:
- Be above the age of eighteen years old.
- Be a New Jersey resident.
- Be a trusted and reliable person.
If you want to create an LLC yourself, follow the New Jersey LLC requirements for a step-by-step guide.
3. Complete Your Public Records Filing
In New Jersey, starting an LLC requires you to submit a public record document with the state for a new business entity. Once you file your public records, it gets filed with the New Jersey Division of Revenue and Enterprise Services. After your public records filling is approved, it becomes a certificate of authorization/formation. In addition, you’ll also need to include some specific information in these documents such as:
- Your LLC’s original name
- The purpose of your business
- Authorized representative
- The address and location of your registered agent
- LLC’s dissolution date
4. Prepare an LLC New Jersey Operating Agreement
LLC operating agreement in New Jersey serves as a ‘’partner’’ document to the public record filing. The relationship between public records filing and the operating agreement is that the public records creates your LLC while the latter indicates who owns the LLC.
The formation of an LLC in New Jersey doesn’t need an operating agreement, but it is highly recommended. The purpose of having an operating agreement is to establish how your LLC will be managed internally. It outlines the rights and responsibilities of the LLC’s members and managers, as well as how the LLC will be run.
Designing an operating agreement helps to establish regulations for you and your business partners. This helps in avoiding misunderstanding and making clear decisions. By demonstrating that your LLC is a separate business organization, you can preserve your limited liability. State LLC law in New Jersey governs the operation of your business in the absence of an operating agreement.
5. Get an EIN (Employer Identification Number) for Your LLC
In New Jersey, an employer identification number (EIN) is required for all profit and nonprofit organizations, limited partnerships, and multi-member LLCs before submitting your organizational documents.
The Internal Revenue Service requires you to apply online for an EIN. Filing for an EIN is free. After you’ve filled an EIN, you receive it immediately. The IRS relies on federal tax ID numbers to identify businesses. To carry out important tasks like filing taxes, employing workers, and opening a business bank account, you’ll need an EIN.
6. Obtain a New Jersey Business License
New Jersey demands businesses across industries to obtain licenses before conducting business in the state. So, you will need to confirm if you require one while you’re learning how to obtain an LLC.
In New Jersey and other states, entrepreneurs and business owners may be required to have local permits. To register an LLC in New Jersey, you’ll require a business permit and a license to operate.
To offer licensed professional services in NJ, you must create a professional LLC. This requirement applies to attorneys, architects, and other professionals that require you to obtain a state license or permit before practicing.
7. File Reports Annually for Your LLC in New Jersey
After you apply for an LLC, you need to know how to maintain it. Once you form an LLC, you’re required to file reports annually by certifying that your data on record is up-to-date or might require any changes. You can either file your annual report through mail or online.
The annual report must be due before the last day of the month it was initially formed. Filing annual reports ensures the state stays updated on the information for your LLC. If you fail to file your annual report within the stipulated time, the state can go ahead and dissolve your LLC.
EndNote
Even if you thoroughly conduct your research or do your due diligence on how to establish a limited liability company, errors will still occur. It’s in your best interest to get it right on the first attempt, but in the event you discover any error when registering your LLC in New Jersey, correct it right away by filling a Certificate of Correction.
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