LLC Cost In New Jersey - How Much To Pay In Fees & Taxes in NJ
If you are planning to open your own business in New Jersey, you want to find out in advance how much an LLC costs in New Jersey.
An experienced businessman always calculates income and expenses beforehand. The same goes for New Jersey LLC filing fees, registered agent fees, taxes, and so on.
In this review, we will find out:
- How much does it cost to form an LLC in New Jersey;
- What LLC fees in New Jersey will have to be paid after registration;
- Obligatory fees and those that can be avoided;
- The cheapest way to start an LLC in New Jersey.
You will also be able to pre-determine whether it's really profitable to open an LLC in New Jersey, or if it’s worth considering other states. After all, in today's world, physical location is not the limit.
How Much Does an LLC Cost in New Jersey?
The LLC cost in New Jersey includes:
- New Jersey LLC filing fee;
- Annual report fee;
- Registered agent fee;
- Business permits and licenses;
- Other costs associated with company’s formation (e.g. name reservation, DBA, certified copies, etc.).
In addition, you need to research other types of New Jersey LLC fees that will need to be paid on a regular basis.
New Jersey LLC Online Filing Fee
To form a New Jersey LLC, you must file your Certificate of Formation (online or by mail) with the New Jersey Division of Revenue and Enterprise Services. In some states, the document is also called "Articles of Organization." Online filing is recommended.
Once the Certificate of Formation is reviewed and approved by the Division of Revenue & Enterprise Services, your company can be considered a valid legal entity, and you can start your business operations.
The filing fee to register a New Jersey LLC is $125.
You can also complete the Public Records Filing for New Business Entity and file it with the Division of Revenue & Enterprise Services by mail. Don't forget to enclose the fee with the document.
Find out how to file LLC Articles of Organization in New Jersey in more detail in our step-by-step guide.
New Jersey Annual Report Fee
New Jersey law requires every business to file an annual report with the Division of Revenue and Corporate Services. In this report, you confirm that the basic information about your company, indicated in the Articles of Organization, is up to date or changed. Such reports are required to ensure that your business information, registered agent, and address are up to date.
The annual report is filed by the end of the month which is the anniversary of your company formation through the Department of State's website. To do so, you must:
- Enter your LLC name;
- Enter your DOS identification number (you can find it through a business database search);
- Update the information and submit it for processing.
For a New Jersey LLC, the cost to submit an annual report is $75.
Mailing Address:
New Jersey Division of Revenue
P.O. Box 252
Trenton, NJ 08646
Office Address:
New Jersey Division of Revenue
33 West State Street
Trenton, NJ 08608
If you do not send the report by the specified deadline, your business reputation will be downgraded and your LLC registration may be revoked at a later date.
In addition, according to business.nj.gov, there are three main types of taxes you may need to file:
- Income Tax: These are taxes collected on your business’s net income and profits;
- Sales and Use Tax: These are taxes paid for the sale of taxable goods and services;
- Payroll Taxes and Wage Withholding: These are taxes held on your payroll (if you have employees);
- Specialty Taxes: These are taxes that are unique to certain services or industries.
For a New Jersey limited liability company, the cost of the partnership tax starts at $150 per member.
Registered Agent Fee
In New Jersey, just like in other US states, you are required to appoint and maintain a registered agent to accept legal/tax documents and service the process on behalf of your company. You have the following choices:
- Be your own RA;
- Delegate this authority to any other individual who is a permanent resident of the state;
- Choose a commercial registered agent.
For cost-saving reasons, it may seem more advantageous to perform RA functions yourself. However, this comes with a lot of inconveniences because according to state law, you must be constantly available at the office during normal business hours.
In addition, professional companies will help you send reports in a timely manner, advise you on other legal issues, and notify you when you receive correspondence. Our review can help you choose the best registered agent for your entity.
In most cases, registered agent fees in New Jersey range from $100 to $300 per year.
Cost to Form a Foreign LLC in New Jersey
If you already have an LLC in another state but want to expand your business to NJ, you can register as a foreign LLC.
For foreign companies, the cost to start a limited liability company in New Jersey is $125.
To complete this registration, you must file a Certificate of Authorization to register a foreign LLC in New Jersey with the Secretary of State. This can be done online or by mail.
Cost to Form a Domestic LLC in New Jersey
To fully answer the question of how much an LLC in New Jersey costs, you need to consider a few more things. That said, all domestic companies must:
- Complete and file Articles of Organization ($125);
- Choose and appoint a registered agent (professional RA services charge from $49 to $300 per year).
In addition, some types of businesses must obtain a professional business license at the federal, state, or county level. Renewal of local business licenses may be accompanied by a New Jersey LLC annual fee. The cost of such licenses varies by county or city.
Starting an LLC in New Jersey not only involves understanding the costs and fees associated with the formation and maintenance of a business entity but also exploring opportunities for additional income or asset liquidation, such as selling unused or unwanted vehicles.
For entrepreneurs in New Jersey looking to clear up space or get rid of vehicles that are no longer needed, services like USJunkCars offer a convenient solution.
By providing 'cash for cars New Jersey,' they enable business owners to convert junk or unused vehicles into cash, which can be particularly useful for covering initial LLC costs or investing back into the business.
This service underscores the importance of leveraging all available resources when managing the financial aspects of starting and running an LLC in New Jersey.
Another important step is to register your business with the IRS. In New Jersey, you must file within 60 days of registering an LLC or within 15 days of starting a business. The fee is $0.
You can file completely free online, and it takes about 15 minutes to complete. You can also apply by mail. For this, you will need to obtain an employer identification number (EIN) from the IRS and file the tax/employer registration form (Form NJ-REG).
Cost to Form a Series LLC in New Jersey
As of Jan 2018, NJ does not have a Series LLC provision. Therefore, it's not possible to establish this type of company in the state. However, you can register a series LLC in other states (e.g. in Alabama, Arkansas, Delaware, Kansas, Iowa, Illinois, Indiana District of Columbia) and then open a foreign company in New Jersey.
The requirements and LLC costs in New Jersey for foreign companies are described above.
Cost to Form a PLLC (Professional LLC) in New Jersey
A Professional LLC is a special type of business that is registered when a company plans to provide professional services which require a special license.
Unlike many other states, New Jersey does not allow professionals, e.g. accountants, attorneys, or physicians to form PLLCs. However, licensed professionals can still form standard LLCs instead.
That said, some activities require mandatory professional licenses for employees and some additional steps.
To open a PLLC, you must:
- Have a state professional license for each employee who will provide the service(s) in question;
- Consult with the appropriate state licensing board for your profession to see if you will need approval from the board and obtain the appropriate documentation;
- File Public Records with the New Jersey Department of Treasury (DOT) Division of Revenue (DOR).
In this case, the cost of starting an LLC in New Jersey is also $125. However, additionally, you may need to pay for documents from the licensing board.
Business License Renewal Fee
If you plan to do business in New Jersey, sell goods or provide services that are subject to state sales tax, you will need to obtain a Certificate of Authority (vendor license).
This can be done online at the Department of Treasury website, and there is no New Jersey incorporation fee.
You may also need a professional license. Check with the state's Licensing and Certification Manual to see if your business requires licensing and how much it might cost.
Also, different counties may require special permits for different types of business activities.
For more information, check the state’s Licensing and Certification Guide and contact your local New Jersey county or municipal government office.
To get your business license, you can apply online with the New Jersey Division of Revenue and Enterprise Services.
Other LLC Filing Costs
Above we have described the mandatory New Jersey LLC fees for different types of businesses. There are also additional fees for services that may be helpful in registering an entity.
These are also worth considering when finding out how much an LLC costs in New Jersey.
Business Name Reservation
In some cases, you might want to reserve a business name in advance for your company. For example, if the name has already been chosen and for one reason or another, you prefer to postpone the registration of the company.
The company name can be reserved for up to 120 days. To do so, complete and submit Form UNRR-1 to the New Jersey Division of Revenue and pay the filing fee of $50.
Alternate Name Registration
A "doing business as" (DBA) or, as it's called in NJ, an "alternate name" is a business name you can use in place of your official company name on your signage, company website, in promotional materials, etc.
A DBA is typically used:
- If the LLC name proves too long or inconvenient for advertising purposes;
- If you change activities or expand your product line.
Thus, you can change your DBA without registering a new entity. This way, you will notify customers of what you have to offer them and avoid unnecessary costs and complexities.
To register an alternate name, you must submit an application (Form C-150G) and pay a $50 filing fee.
Certified Copies of Documents
If you need certified copies of your business documents in New Jersey, you can get them whenever you need through the Department of State's website. The cost of this service is $50 per document, plus $0.10 per page.
Standing Certificate
A Certificate of Good Standing (also called a "standing certificate") is a document that proves you are in good standing with the state government. New Jersey businesses are not legally required to obtain such a certificate.
However, you can get one online or by mail if you decide to do business outside of NJ or get a business bank account. The fee is $50.