Let’s learn how to form an LLC in New Jersey.
1. CHOOSE A NAME FOR YOUR LLC
The first step in forming an LLC is to choose a name for your business. The name must include the phrase “Limited Liability Company” or “LLC.” It can’t include words that would confuse it with a government agency (like the FBI or Secret Service) or a bank (like Bank of America).
Your LLC’s name must be distinguishable from the names of other businesses on file with the New Jersey Division of Revenue. You can search the division’s online database to see if your desired name is available.
2. FILE ARTICLES OF THE ORGANIZATION
The next step is to file Articles of Organization with the New Jersey Division of Revenue. The Articles of Organization is a short document that includes information about your LLC, like the names and addresses of the members and manager(s), if applicable.
You can file online, by mail, or in person. The filing fee is $125.
3. CREATE AN OPERATING AGREEMENT
An Operating Agreement isn’t required in New Jersey, but we recommend that you create one anyway. The Operating Agreement is a document that outlines how your LLC will be run and sets forth the rights and responsibilities of the members. It also helps prevent disagreements down the road by laying everything out upfront.
4. APPOINT A REGISTERED AGENT
All LLCs in New Jersey must appoint a Registered Agent. A Registered Agent is someone who agrees to receive service of process (legal documents) on behalf of your LLC. The Registered Agent must have a physical address in New Jersey and be available during normal business hours to accept the service of process. Many people appoint themselves as their own Registered Agent, but you can also appoint another individual or use a professional Registered Agent service like Zen Business.
5. GET AN EMPLOYER IDENTIFICATION NUMBER (EIN)
The next step is to obtain an Employer Identification Number (EIN) from the IRS if you will have employees working for your LLC or you will be opening a business bank account. You can apply for an EIN online, by fax, or by mail. There is no filing fee. Once you have your EIN, you can open a business bank account.
6. COMPLY WITH OTHER BUSINESS LICENSING AND PERMITTING REQUIREMENTS
Depending on what type of business you’re running, you may need to get additional licenses and permits from state agencies and local governments.
For example, if you’re selling food products, you’ll need to get a food handler’s license from the county health department.
If you’re providing professional services like accounting or legal services, you may need to get licensed by the state. You can find out more about licensing requirements from the New Jersey Business Action Center.