How Much Does an LLC Cost in New Jersey (A Complete Guide)
If you're establishing an LLC in New Jersey, it's crucial to understand New Jersey LLC costs and charges.
Through my experience as a Mergers and Acquisitions specialist and collaboration with LLC formation experts in New Jersey, I've helped dozens of clients navigate the registration process.
I'll break down all LLC filing fees, from mandatory state costs to optional services that streamline the formation process.
Professional New Jersey LLC formation services can handle everything from incorporation to ongoing compliance if you prefer expert assistance.
Quick Summary
- New Jersey LLC filing fee is moderately priced at $125, which is below the national average of $132.
- Total New Jersey LLC costs for year one typically range from $300 to $600, depending on optional services you select.
- Once your LLC has been approved, additional expenses include licenses, business permits, annual report fee, operating agreement, sales tax, and other relevant documents.
- I helped several clients register their New Jersey LLC through the Department of Treasury’s Division of Revenue and Enterprise Services.
Cost to Start an LLC in New Jersey
There are mandatory fees and optional expenses that have to be shouldered before you could start a limited liability company in New Jersey.
1. LLC Formation Filing Fee ($125 – Mandatory)
The filing fee for a Certificate of Formation in New Jersey is $125, whether you file online or by mail. This one-time fee establishes your LLC with the Division of Revenue and Enterprise Services.
Online filings typically process within one to two business days, while mail submissions take up to 15 business days.
For faster processing, New Jersey offers expedited options for in-person and fax filings: $25 for same-day processing, $500 for two-hour service, or $1,000 for one-hour service.
Once approved, your LLC is fully authorized to transact in New Jersey.
Learn more about LLC processing time in New Jersey.
"The primary expense in forming an LLC is associated with the state filing fee required for submitting your Articles of Organization."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
2. Registered Agent Service Fee ($80 - $300 – Optional)
It is a legal need for businesses and LLCs to have a registered agent when forming an LLC in New Jersey and submitting the required papers to the Secretary of State.
Your LLC's registered agent is responsible for gathering tax documentation, obtaining state notifications, and managing court proceedings.
You can serve as your own registered agent for free or hire a professional firm and pay a New Jersey registered agent fee of $80-$300 per year to serve in that capacity.
3. Name Reservation Fee ($50 - Optional)
If you are not prepared to register your business or create an LLC, a name reservation will allow you to hold the name for future usage.
To legally reserve a business name in New Jersey, you must fill out an Application for Reservation of Name with the Division of Revenue.
This costs a filing fee of $50 and holds your name for 120 days.
Before reserving any business name, I advise clients to look up an LLC in New Jersey and ensure it's valid for use and adheres to all LLC name regulations.
Expenses Following the Approval of Your LLC
Once your limited liability company has been registered and approved, the company entails additional expenses to cover licensing, taxes, and other documents.
1. Professional Business License (Depending on Profession - Mandatory)
Professional business licensing is necessary for firms that demand specialized training and skills to deliver services [1]. The New Jersey Division of Consumer Affairs oversees and regulates more than 720,000 individuals and businesses, ensuring compliance across 51 Professional and Occupational Boards and Committees.
The New Jersey LLC professional license cost varies depending on your field. Still, you'll need to pass a state test, fill out an application to the appropriate agency, and cover any fees associated with your business license.
I had a client who owns an accountancy firm. They were required to obtain a professional license from the New Jersey State Board of Accountancy.
2. Annual Report Fee ($75 – Mandatory)
Per New Jersey law, the annual report for your LLC is scheduled at the close of the month, which marks its first anniversary.
An annual report costs $75 by mail, $78 online, and $75.50 if you make payments via e-checks.
To submit your report, visit the New Jersey Annual Reports and Change Services page.
3. Operating Agreement ($100 - $200 - Optional, but Recommended)
Although not required by law, I always ensure that my clients draft an operating agreement since the document outlines the ownership, organizational structure, and general operational practices of the LLC.
When running a company, you can draft an LLC operating agreement for free or hire an attorney and pay a service fee of $100-$200.
4. Sales Tax (Mandatory)
In New Jersey, you typically pay a sales tax of 6.625% on each purchase of goods or services. At the moment of the transaction, the seller (a retailer or supplier of services) collects tax and delivers it to the state, according to the New Jersey Division of Taxation.
To comply with the sales tax and other business taxes, you must register with the New Jersey Division of Revenue and Enterprise Services to sell taxable products or services.
5. DBA ($50 - Optional)
Before your business entity can use a DBA, submit a Registration of Alternate Name form to the Division of Revenue.
The New Jersey LLC cost of DBA registration is $50.
In my experience, once the New Jersey department verified that my DBA name is unique and available for use, they approved my application, and I was able to transact under that name.
6. Certificate Of Good Standing ($50- $100 - Optional)
A Certificate of Good Standing certifies that a new business entity has submitted all required paperwork and paid all the necessary fees to the Secretary of State's office.
It also acts as confirmation that the organization is real and has permission to conduct business in the state of New Jersey.
A foreign LLC expanding into New Jersey will also need this certificate to confirm authorization to conduct business in the state.
New Jersey Division of Revenue's Business Records Service offers two types of the standing certificate:
- Long-form certificate, which costs $100
- Short form certificate, which costs $50
7. Certified Document Copies ($25 + $2 per page - Optional)
A certified document copy is a duplicate file of the original document, verified and sealed by the Secretary of State.
New Jersey will give certified copies of your business papers for a $25 charge or $50 for accelerated certification.
Moreover, there is a $10 charge for the first page and an extra $2 charge for each page in the file.
Whenever I start an LLC in any state, I keep certified copies of all business documents in file to maintain good standing and address any future legal issues.
8. Employer Identification Number ($0 - Optional but Recommended)
An EIN is a serial code the Internal Revenue Service assigns to each business structure in New Jersey.
EINs are majorly used for filing state and federal taxes, but they're helpful for other reasons, including:
- Business loans application
- Hiring employees
- Opening a business bank account
- Preventing identity fraud
Obtaining a federal tax ID number in New Jersey is easy and free on the IRS website. Fill out the necessary forms, and the IRS will issue an EIN in less than 30 minutes.
Alternatively, you can hire an LLC formation service to apply for the EIN and pay the $50-$100 filing fees.
FAQs
Is There A Penalty For Paying My Taxes Late In New Jersey?
There is a penalty for paying your taxes late in New Jersey. The state charges a late payment penalty of 5% of the tax due.
What Payment Methods Can I Use To Pay New Jersey's State Fees For Filing My LLC?
The payment methods you can use to pay New Jersey’s state fees for filing your LLC include check, credit or debit cards, and money order.
Do I Need Business Insurance for My New Jersey LLC?
You do not need business insurance to form an LLC in New Jersey, as it is not legally required. However, general liability coverage is highly recommended and typically costs $300-$1,500 annually, covering claims like customer injuries or property damage that LLC status alone won't shield you from.
References:
- https://www.njconsumeraffairs.gov/Pages/Applying-For-A-License.aspx
