New Jersey LLC
New Jersey LLC
Form a New Jersey LLC
At LawInc we are New Jersey LLC formation experts who can help you form a New Jersey LLC, the right way. We file the New Jersey LLC Articles of Organization with the New Jersey Secretary of State Corporations Division and prepare a customized operating agreement. We can also obtain the New Jersey LLC’s EIN, in an quickly as 24 hours. Let LawInc guide you through the process of forming your New Jersey LLC.
Get started with the New Jersey Limited Liability Company online formation process. Our clear, concise and easy to use website, helps keep things simple.
New Jersey LLC Name
The first step in forming a New Jersey Limited Liability Company (LLC) is selecting the business name. New Jersey LLC names:
- Must contain the words must contain the words “Limited Liability Company” or the abbreviation “L.L.C.”
- May contain the name of a member or manager; it must be such as to distinguish it upon the records in the office of the Department of the Treasury from the name of any domestic or foreign corporation, limited partnership, business trust, or limited liability company, unless the written consent of the entity holding the conflicting name is furnished to the Department of the Treasury.
- May not contain any word or phrase, or any abbreviation or derivative thereof, the use of which is prohibited by any other statute of New Jersey, unless the restrictions have been complied with.
- An available New Jersey LLC name may be reserved for 120 days.
LawInc.com permits you to choose up to three names and will conduct a name search for your New Jersey LLC, prior to filing.
New Jersey LLC Formation
New Jersey LLC Filing Procedure: When forming a New Jersey LLC, the New Jersey Public Records Filing Form must be filed with the Corporations Division of the New Jersey Department of Treasury. The New Jersey Public Records Filing Form must state:
- The New Jersey LLC name.
- Name and address of each New Jersey LLC organizer.
- Street address of New Jersey registered office.
- Street address of principle place of business.
New Jersey LLC Organizers: An New Jersey limited liability company can be formed by one (1) or more organizers. An organizer may be an individual, business entity, business trust, estate, trust, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.
New Jersey LLC Members: New Jersey LLCs require 1 or more members. There is no residence or age requirement. New Jersey LLC members are not required to be listed in the New Jersey Public Records Filing Form.
New Jersey LLC Duration: The period of duration of a limited liability company shall be perpetual unless the New Jersey New Jersey Public Records Filing Form place a limitation on the company’s existence or until dissolution or termination.
New Jersey LLC Purpose: It is acceptable to state either alone or with a specific purpose clause, “The purposes for which the Limited Liability Company is organized shall be to transact any and all lawful business for which Limited Liability Company may be organized pursuant to the provisions of the New Jersey Limited Liability Company Act.”
New Jersey Registered Agent: An New Jersey LLC must maintain a registered agent and office to receive service of process in New Jersey. The New Jersey registered agent should be available, at an New Jersey physical address, during normal business hours to accept important legal and tax documents on behalf of the New Jersey LLC. The registered agent can either be (1) a domestic entity or a foreign entity that is registered to do business in New Jersey or (2) an individual resident of the state. A New Jersey LLC may not act as its own agent.
New Jersey LLC Operating Agreement: After filing, it is highly advised that an operating agreement is drafted which dictates the LLC internal affairs and management. There is no set criteria, but an New Jersey LLC operating agreement should reference how the New Jersey LLC is managed, allocation of profits and losses and member capital contributions. The New Jersey LLC operating agreement does not need to be filed.
New Jersey LLC Post-Filing Requirements
New Jersey Annual Registration: New Jersey LLCs must submit annual reports and associated processing fees each year following their dates of registration. Online filing is now mandatory for all annual report filings. Visit here for more information: https://www1.state.nj.us/TYTR_COARS/JSP/page1.jsp
New Jersey LLC Taxes
New Jersey State Income Tax: The LLC tax rate for New Jersey is variable, depending on New Jersey taxable net income. New Jersey LLCs must be registered for tax purposes and employer purposes, if applicable. Visit here for more information: https://www.state.nj.us/cgi-bin/treasury/revenue/dcr/reg/sos_dcrnew01_page1.cgi
Federal Income Tax: An advantage of the LLC is its tax flexibility. LLC members are allowed to select how the entity will be taxed. An LLC may be classified for federal income tax purposes as either a:
- Sole proprietorship
- Partnership, or
Single member LLCs are treated the same as sole proprietorships. Profits are reported on Schedule C as part of your individual 1040 tax return. Self-employment taxes on New Jersey LLC net income must be paid just as you would with any self-employment business.
Most New Jersey multi-member LLCs elect to be treated as partnerships by the IRS and file IRS Form 1065. On this form, New Jersey LLC profits are reported and allocated to each of the owners according to the New Jersey LLC’s operating agreement. Each owner is given a Schedule K-1, which shows each owner’s share of LLC income or loss. The owner then reports and pays taxes on this income on the owner’s annual 1040 income tax return. It is important to note that as with sole proprietorships, all New Jersey LLC profits are taxed to the owners, even if they are not actually distributed by the LLC. This situation can arise when the LLC needs to use its profits to pay ongoing expenses.
If pass-through taxation is not desired, an LLC may elect to be taxed as a corporation by completing IRS Form 8832. If this election is made, the LLC is taxed as a C corporation by the federal government. Because the corporate income tax rates for the first $75,000 of corporate taxable income are lower than the individual income tax rates that apply to the taxable income of non-corporate taxpayers, it is possible a net income tax savings can result from this tax election. Additionally, an LLC can be taxed like an S corporation by filing IRS Form 2553.
Federal Tax Identification Number/Employer Identification Number (EIN): The Federal Tax Identification Number, also known as the Employer Identification Number (EIN) is a number that is assigned to a business by the Internal Revenue Service. An EIN is like a Social Security Number for a business. It is a requisite for certain business functions such as opening bank accounts or hiring employees. An EIN is typically required if the New Jersey LLC has more than one owner, or any employees.