Cost to Start a New Jersey LLC

The Cost to Start a New Jersey LLC: Facts to Consider

The cost of starting an LLC in New Jersey depends on a few factors. These include the number of members in the LLC, whether the company will be hiring employees, and the industry. 

The good news is that the overall cost of starting an LLC in New Jersey is relatively low compared to other states.

Business owners can generally expect to pay somewhere between $100 and $1,000 when setting up a New Jersey LLC. 

Here is a breakdown of how much it will cost to set up a basic New Jersey LLC:

1) New Jersey LLC Public Records Filing/Certificate of Formation

All new business entities looking to form an LLC must file a Certificate Of Formation with the New Jersey Division of Revenue & Enterprise Services. 

This is also called the Public Records Filing and costs $125. 

Applicants can perform this process online or by mail. The document is recognized as a Certificate of Formation once the state authorizes the Public Records Filing.

2) New Jersey LLC Name

Choosing the right name for a New Jersey LLC is completely free. 

While individuals can pretty much use any name they want, there are some guidelines to follow when naming a company. 

First, they must avoid using words that are "offensive/suggestive," "deceptive/confusing," or "immoral" on a company name. 

Secondly, a new LLC must ensure its name doesn't resemble any other companies in the state. 

For example, naming a new company "New Jersey Liquor" may violate a trademark owned by the New Jersey Liquor Corporation. New LLCs can avoid this problem by conducting a trademark search. 

3) Registered Agent Fee

While business owners are allowed to use any name they want to associate with their New Jersey LLC, the state requires that they have someone serve as a registered agent.

This person/company is responsible for filling out various paperwork and other functions related to running an LLC in New Jersey. The cost for LLC services can range anywhere from $0-$500 depending on the size of the business and whether or not they'll be responsible for filing all the necessary paperwork. 

4) Federal Tax ID Number (EIN)

All LLCs planning to hire employees or have a business bank account will need to obtain a Federal Tax ID Number (EIN). This is an identification number used by the IRS to identify the business.

Entities can obtain an EIN for free if they apply for it online. However, some registered agents will charge a fee to obtain an EIN on their client's behalf. These fees can range from $0-to $500.

5) LLC Operating Agreement

This is a legal document that establishes the rules of a business and the LLC's bylaws. The cost of preparing a standard operating agreement varies depending on the lawyer and the size of the business. 

The cost of drafting a single-member operating agreement ranges from $350-$1000, while a multi-member operating agreement ranges from $750-$5000. 

6) Annual LLC Operating Report

It is important to keep track of an LLC annual fees in NJ every year. This way, owners can tell what transactions might have been omitted or skimmed. 

For example, if $10,000 in sales were made on a particular date but only recorded $2,000 worth of total sales in books and records. 

This is a violation of the law, so keep track! Annual LLC Operating Report Cost: $75 per year.

7) New Jersey LLC Taxes

All LLCs in New Jersey are responsible for a variety of taxes. As a result, the total tax that an LLC must pay can be quite high. 

Business owners should partner with qualified attorneys to ensure that they do not make any mistakes when filing their New Jersey LLC Taxes. 

The cost for this service varies depending on the complexity of the business and the size of the LLC.

8) Cost to Form a Foreign LLC in New Jersey

Existing LLCs in other states looking to do business in New Jersey must register their LLC as a foreign LLC. The foreign LLC must pay a $125 fee to incorporate. By submitting a Certificate of Authorization, applicants may form a foreign LLC in New Jersey.

9) Licensing Requirements

Depending on the nature of the business, owners may have to comply with specific licensing requirements. 

These can range from a simple one-time fee to mandatory annual subscriptions for professional services like accounting firms and website hosting companies. 

Some businesses carry licenses from multiple agencies over a period of time, while others only have to get licensed once.