Last Updated on June 13, 2022 by Fair Punishment Team
Are you currently thinking about starting your own LLC in New Jersey? Otherwise referred to as a Limited Liability Company.
Even though there are set rules for setting up a Limited Liability Company throughout the various States, it’s important to note that just like with other areas of the country, New Jersey has its own set of regulations for setting up an LLC that you will need to follow, and this is where we come in to lend a helping hand.
To help you set up your very own business, in this guide, we are going to be showing you how you can start your Limited Liability Company in New Jersey without any stress or missteps along the way. Just keep scrolling to discover your six-step checklist to start your LLC in New Jersey!
1. Name Your New Jersey LLC!
In order to establish your LLC, you are first going to need to make sure that you have given your New Jersey LLC a name!
Even though it might not seem like it, oftentimes, picking the name of an LLC can be one of the most challenging and trickiest aspects of the entire process, so it only makes sense to make it the first thing that you do.
When it comes to choosing the name of your company, you’ll pretty much have free reign over what you choose to call it.
However, along with making sure that you are choosing a name that is clear, concise, and catchy – there are also a few requirements in New Jersey for LLC names that you should make sure to adhere to while choosing the name of your start-up Limited Liability Company:
Ask For Approval To Use Restricted Words
Even though the majority of states across the country have a non-negotiable restricted words list, you might be interested to learn that New Jersey is a little more lenient than other states.
With that being said, if you want to use a restricted word in your business’s name, you will need to ask New Jersey for approval. However, it is generally recommended that you refrain from using restricted words if possible.
Don’t Copy Another LLC Name
Another important rule that you are going to need to make sure that you aren’t breaking is to refrain from using another LLCs name that is already registered in New Jersey.
This can easily be checked while you are creating a domain, but you can also check for active business entity names by clicking here
Include LLC/Limited Liability Company In The Name
In addition to all of the above, you are also going to need to make sure that you are including either LLC or Limited Liability Company somewhere in the name of your LLC.
This is entirely up to you how you choose to include your chosen name into the name of your LLC, but the majority of people will often choose to include it at the very end.
Keep in mind that, after you have settled on the name that you would like to give your LLC in New Jersey, it is worth checking to see if it’s currently available so that you can either reserve or purchase it. You can do this here.
2. Choose A Registered Agent
After you have chosen the name that you would like to use for your Limited Liability Company, the next thing that you are going to need to do is find yourself a registered agent!
If you’re not overly familiar with the term, a registered agent is essentially a person or business who will be in charge of handling all of the important business documents, legal notices and correspondence from the state so that you don’t have to.
In addition to this, the registered agent also serves as the legal “voice” of the company, and is often the first point of contact for any disputes or legal notices provided by the state or elsewhere.
With all of that being said, the registered agent will essentially handle all of the business mail that your company receives, and will also be responsible for letting you know if there are any legal disputes taking place, such as if your business is being sued.
With that in mind, when you have formed your Limited Liability Company, you will have the freedom to decide who it is that you would like to appoint as being your registered agent.
This can be anyone that you like, including a member of your LLC, although you will need to make sure that the person that you choose to be the agent will be able to meet the following requirements:
- The registered agent must be able to receive business mail and general correspondence during regular business hours within the state of New Jersey.
- The chosen registered agent must have a physical address situated in the state of New Jersey, that is otherwise known as the registered office.
- The registered agent will need to be a person or company that has the authorization to be able to work and operate within the state as a registered agent or otherwise.
To follow on, it is also worth noting that you have the ability to choose between either a person or a company, depending on what it is that you are looking for. Generally speaking, the choice will ultimately depend on you and your preferences.
However, the majority of LLC business owners (especially those who are just starting out) often decide to go with an online legal business to act as their registered agent as this method can often take the confusion out of the role.
3. File Your Articles Of Incorporation
Along with making sure that you are assigning your Limited Liability Company with a suitable registered agent for you and your LLC, you are also going to need to make sure that you have filed for an array of important legal documents to ensure that you’re able to operate your business in New Jersey and elsewhere.
The Articles of Incorporation are at the very top of that list! Let’s take a look at what the Articles of Incorporation is below:
Even though it might sound pretty daunting, the Articles of Incorporation are essentially a piece of documentation that will officially lay out the foundation for your LLC and what it is going to be offering.
In order to prepare the Articles of Incorporation, you will need to fill out a form that you will then need to send by mail (usually to the secretary of state) so that it can be approved and your business can begin operating within the state.
With that being said, it’s important that your Articles of Incorporation contain all of the necessary information regarding your LLC, so to prepare your articles correctly, you will typically need to include the following:
- The name of your Limited Liability Company as well as the address that you have registered the company with.
- The contact information of all of the LLC organizers.
- The contact information of all current members of the LLC.
- The name and contact information of the person/company that you have appointed to serve as your registered agent. Typically, this will require you to provide the address of the office in which they will be based to receive all mail and government/legal correspondence.
- A statement which clearly outlines whether or not the current members of your LLC are going to be held personally liable to any debts that the LLC may infer of its duration.
- The amount of time/timeframe that the LLC is going to exist for. More often than not, the majority of LLC owners will list their LLC as being “perpetual” which means that the duration in which the LLC is going to be active and operating within the state of New Jersey is going to be indefinite with no clear or potential end. However, if you are only planning to use your LLC for a specific period of time, then you will have to clearly state that in your Articles of Incorporation/
- You will also need to clearly outline what the management structure of your LLC is going to consist of. So, if you are planning to hire a management team to help run your company from day to day, then you will need to clearly outline that in this document.
After you have finished filling out the Articles of Incorporation, please also keep in mind that you will be required to write your signature at the bottom of each page of the documentation. If you do not do this, then the Articles of Incorporation draft that you send might not be approved.
Additionally, if you would like to find out more about the Articles of Incorporation, please click here.
4. Make An Operating Agreement
Another important document that you are encouraged to file for if you are taking out an LLC in New Jersey is something that is known as an operating agreement.
Unlike the Articles of Incorporation, the operating agreement is a business document that is not actually required by law, however, it is heavily recommended by the state of New Jersey that you do so.
This is because an operating agreement will serve as a type of internal document that will help to outline how your LLC is going to be operated, while also containing the relevant information to help aid in any potential disputes that may arise over the duration of your LLC.
With that being said, if you do not opt to take out an operating agreement, then should any legal disputes or notices arise, the responsibility to find a solution to the problem will fall to New Jersey by default.
Due to this, it might then mean that any decisions that are made to help settle the dispute may not be in the best interest of you or your LLC, which is why it is strongly recommended that you take the time to create one.
To follow on, if you would like to create an operating agreement for your New Jersey Limited Liability Company, please click here for a form that you can use to create it.
5. Get An EIN Number
Next up on our LLC setup checklist, you are going to need to make sure that you assign your LLC with an EIN number, which stands for an Employer Identification Number.
Essentially, the EIN will serve as a way for you to be able to file your taxes, while also providing the IRS with a way to recognize your LLC while also making the following things easier to complete:
- Opening up a business bank account
- Hiring employees
- Applying for funding/financing assistance
If you would like to find out more relevant information regarding Employer Identification Numbers within New Jersey, please click here.
6. Decide If You Need A BIN
Last but certainly not least, the final step that you are going to need to take while setting up your LLC is to decide whether or not you want to get a BIN.
If you’re not overly familiar with the term, BIN stands for Business Identification Number, and it will be a requirement in the state of New Jersey if you are planning to hire employees for your Limited Liability Company.
This is because your Business Identification Number will serve as a way for the Internal Revenue System (IRS) to be able to tax your business’ payroll appropriately.
Keep in mind that if you are planning to hire employees (or even start up your own LLC business with a small team of employees already in place) and you do not assign your company with a BIN, then you will be liable for a costly fine if found out, and may even have your operating rights revoked.
Frequently Asked Questions
Do You Need A Business License?
If you’ve already begun doing research on LLCs, you might have already discovered that the rules regarding business licenses for LLCs often tend to vary depending on which state the LLC is located.
When it comes to New Jersey, LLCs that are operating within certain industries will need to have a business license, and these industries consist of the following sectors:
- The food service
While these are the most common industries that require LLCs to have a business license to be able to operate, we recommend that you check out New Jersey’s official list of industries that require a business license here.
What Are The LLC Tax Requirements In New Jersey?
One of the biggest questions many LLC owners have when starting their company is whether or not there will be tax requirements.
Unlike some other states that do require certain LLCs to pay a separate tax in order to be able to operate, New Jersey does not have any tax requirements for Limited Liability Companies, which means that the profit that they make does not get taxed by the state.
ill, with that being said, there are some LLC owners that do choose to pay tax by filing a 2553 Form with the Internal Revenue Service.