Requirements to Form an LLC in New Jersey
Organizing your company as a Limited Liability Company (LLC) protects you and the other business owners from actions and debts the company takes and offers certain tax benefits, as well. Here are the requirements for establishing an LLC in New Jersey, including choosing a business name and acquiring a certificate of formation.
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What Is an LLC?
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The U.S. Internal Revenue Service defines a Limited Liability Company (LLC) as a company that by virtue of its organization offers its owners protections from the debts and actions of the company. Many people establishing companies are choosing to create LLCs instead of partnerships or S corporations because LLCs provide protection, flexibility and pass-through taxation benefits to their owners. Pass-through taxation means that the owners pay taxes on the company's income rather than on the value of the firm itself.
New Jersey
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Individual state governments authorize the formation of LLCs within their boundaries, and requirements for forming LLCs vary from state to state. To establish an LLC in New Jersey, applicants must complete an application that involves several steps and then file it, along with a fee, with the state.
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Choosing a Business Name
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The first step is to choose a unique name for your business. The state of New Jersey has an online application system that allows you to check almost instantly whether the name you'd prefer for your business is available. You simply use the pull-down menu to choose the type of organization you wish to form---in this case, a domestic Limited Liability Company---and then fill in the next field with the name of the business and press the "submit" button. In very short order, the system will inform you as to whether the name you want is available.
Getting a Certificate of Formation
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At this point, the online system will take you to an application for a certificate of formation, which you must obtain to establish your LLC in New Jersey. You can submit the application online or print it out and mail it. Information called for includes your federal employer identification number, the purpose of the business, registered agent information, business address, and the names and addresses of the members of the business. The fee for applying to form an LLC in New Jersey is presently $125.
Operating as an LLC in New Jersey
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Once your LLC application has been approved, you must operate the company in accordance with state and federal employment and taxation laws, as well as pay state-imposed fees specific to this type of company.
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