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Starting your own LLC in New Jersey involves a bit more than just the initial paperwork yet, it doesn’t need to break the bank. This piece will unravel the various costs you might bump into while forming an LLC in the Garden State.
We’re also spotlighting services like Tailor Brands that streamline the process and can help pinch those pennies along your entrepreneurial adventure.
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What Is the Cost of Forming an LLC in New Jersey?
Setting up an LLC in New Jersey mainly involves a fee of $125. This amount is for the online submission of your LLC’s Certificate of Formation via the New Jersey Division of Revenue and Enterprise Services.
New Jersey Foreign LLC Formation Costs
If you already have an LLC set up in another state and want to expand your business to New Jersey, you need to register your LLC as a foreign entity in the state.
Registering a foreign LLC in New Jersey will cost you $125. You’ll need to file a Certificate of Authorization to finalize the registration of your foreign LLC in New Jersey.
Annual Cost for LLCs in New Jersey
Keeping a Limited Liability Company (LLC) in New Jersey up and running involves several yearly costs. Key among these is the need to file an annual report to maintain good standing, which comes with a $75 fee. Additionally, depending on your business sector, there might be specific licenses and permit costs.
You’ll also need a registered agent to handle legal documents for your LLC, with fees varying based on the agent or service you choose. Remember, these are just ballpark figures, and actual cost to form an LLC may vary.
For a detailed breakdown of all potential expenses for your New Jersey LLC, consider reaching out to the Division of Revenue and Enterprise Services or a legal professional.
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How Much Does It Cost to Start an LLC in New Jersey With the Best LLC Service?
To start an LLC in New Jersey, the basic fee is $125. This initial cost can increase if you opt for additional services. The typical processing time ranges from 2 to 3 weeks, but there are faster options available. For an extra $50, you can shorten the processing time to 4 to 6 days, and for $100, it can be reduced further to just 1 to 2 days.
Tailor Brands offers several LLC plans. Their Lite LLC plan, the most budget-friendly option, covers the cost of state filing with standard processing times. The Essential LLC plan, priced at $199 plus state fees, includes expedited processing, annual compliance services, and an operating agreement.
This plan also requires an annual fee of $199 for ongoing services. The Elite LLC plan, at $249 plus state fees, is Tailor Brands’ top-tier option. It includes everything in the Essential plan plus extra business tools like a free domain for the first year, a DIY website builder, an online store, eight free logos, a digital business card, a business card tool, and a social media post maker. An annual fee of $249 is required to maintain these services.
Additional Costs When Starting an LLC in New Jersey
New Jersey LLC Name Costs
Naming your New Jersey LLC is free of charge, marked as $0. There’s no requirement to reserve the name or follow any similar procedure initially. Simply include your chosen LLC name in the Public Records Filings/Certificate of Formation document. Once the state approves your filing, your LLC name is officially registered.
If you prefer to secure your chosen name before officially forming your LLC, you can reserve it for up to 120 days. This requires filling out Form UNRR-1 and paying a filing fee of $50.
New Jersey Registered Agent Costs
In New Jersey, appointing a Registered Agent is necessary when filing your LLC’s Certificate of Formation, but hiring a professional isn’t mandatory. You can act as your own Registered Agent or choose a friend or family member for the role.
Handling this role personally or through someone you know won’t cost you anything, and there are no fees for listing a Registered Agent in your LLC formation documents. However, if you prefer to keep your address private in public records, hiring a Commercial Registered Agent is an option, typically costing about $125 per year.
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New Jersey Operating Agreement Costs
Operating Agreements are crucial for New Jersey LLCs and should be implemented by all businesses of this type. These agreements detail the operational procedures and the distribution of ownership among the company’s Members.
While similar Operating Agreements are often sold for $50 to $200 on various platforms, we provide them here at no cost.
New Jersey EIN Cost
Get your New Jersey LLC’s EIN Number for free. This number also referred to as an Employer Identification Number or Federal Tax ID Number, is available at no cost ($0) directly from the IRS website.
Although some sites might charge for this service, it’s important to remember that there are no fees associated with obtaining an EIN for your LLC.
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New Jersey LLC Taxes
Taxes specific to New Jersey LLCs include:
Federal Income Taxes
The IRS provides different tax classifications for LLCs. For a Single-Member LLC, it’s considered a Disregarded Entity, which means it does not file a separate federal income tax return. Instead, the taxes are filed and paid by the LLC owner.
How the taxes are handled depends on who owns the LLC: if owned by an individual, it’s taxed like a Sole Proprietorship; if owned by another business, it’s taxed as a branch or division of the parent company.
Multi-Member LLC Taxes
When an LLC is owned by multiple people, it’s classified for tax purposes as a Partnership. The LLC must file a 1065 Partnership Return and issue Schedule K-1s to each owner, outlining their portion of the profits. Owners then include this income on their personal tax returns (Form 1040) and pay the appropriate taxes.
Husband and Wife LLC Taxes
In some states, such as Texas, a husband and wife who own an LLC together have the option to file taxes as a Single-Member LLC (Qualified Joint Venture) instead of a Multi-Member LLC. However, this choice is not available in non-community property states like New Jersey.
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Electing Corporate Taxation
An LLC has the option to be taxed as a corporation instead of under its default classification. This includes choosing between S-Corporation and C-Corporation status.
To be taxed as one of these corporate forms, an LLC must submit the appropriate forms to the IRS. Consulting with an accountant is advisable when making this decision, which is often beneficial for well-established businesses.
New Jersey State Income Tax
In New Jersey, owners of single-member LLCs report the LLC’s profits or losses on their personal state tax returns. For multi-member LLCs, a Partnership return may be required at the state level, and the owners then include their share of profits or losses on their individual returns.
Local Income Tax in New Jersey
In New Jersey, both individuals and LLCs may need to file and pay local income taxes depending on the requirements of their municipalities. Given the complexity of these obligations, seeking professional guidance is recommended.
New Jersey Sales Tax
If your LLC engages in selling products in New Jersey, obtaining a Seller’s Permit to collect sales tax is necessary. This permit also referred to as a Sales Tax Certificate of Authority, can be acquired from the New Jersey Division of Taxation. You can register for business taxes online via the New Jersey Online Business Registration portal.
New Jersey LLC Payroll Taxes
If your New Jersey LLC employs staff, you’re required to handle payroll taxes. This includes withholding federal and state income taxes, as well as Social Security and Medicare taxes, among others. Given the complexity of managing these taxes, it’s often wise to seek professional help to ensure everything is calculated and submitted correctly.
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New Jersey LLC Cost FAQs
Conclusion
In conclusion, forming an LLC in New Jersey goes beyond just the initial filing fee. The process includes managing essential documents, engaging registered agents, and careful attention to crucial elements like operating agreements and obtaining an EIN.
Skillful management of these financial aspects is crucial, and this is where the expertise of an LLC registration company like Tailor Brands becomes invaluable.
With a deep understanding of these financial components and support from Tailor Brands, aspiring entrepreneurs can confidently start their New Jersey LLC, equipped with assurance and readiness.
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