New Jersey is more than the Garden State; it’s also a great place to start a business! As you develop your small business budget for your new endeavor, make sure to include the cost of forming a New Jersey LLC in the list.
Here, we’ll walk through what you need to know about forming an LLC in New Jersey, as well as cover the fees you will need to pay.
LLC 101: What is it?
A Limited Liability Company (LLC) is a legal entity formed in the state of New Jersey that is a cross between a corporation and a partnership. You get the limited liability and asset protection features of a corporation with the flexibility and tax benefits of a partnership within the state of New Jersey.
Benefits to a New Jersey LLC
The LLC is a great business structure to consider for several reasons:
- It limits your personal liability for business debt
- You can transfer ownership of the company at some point
- Your business can continue beyond your lifetime
- It requires fewer corporate formalities like annual meetings and record keeping
- Owners do not need to be US citizens or have permanent residences in New Jersey
- It saves money on taxes via pass through taxation
Requirements & Fees for Your LLC in New Jersey
To form an LLC in New Jersey, you must first file your Articles of Organization with the New Jersey Secretary of State, Corporations Division. You can download this form off of the Secretary of State website, or have CorpNet handle it on your behalf.
The fee for forming a New Jersey LLC is currently $125. If you want to get an LLC name reservation (maybe you’re not quite ready to form that LLC but want to ensure no one else takes your business name in NJ), that fee is $50.
Your responsibility doesn’t end once your LLC is approved. Each year, you will need to file an Annual Report and pay the $50 fee. These are both due on the last day of the anniversary month of forming your LLC. So if you formed your LLC in January, next year (and every year thereafter), you would need to file your Annual Report and fee by January 31.
Turning your business into an LLC will protect your personal assets and make your new business even more secure.
Let CorpNet take the pain out of forming a New Jersey LLC. Schedule a complimentary consultation with one of our small business experts to get started!