If you're establishing an LLC in New Jersey, it's crucial to be knowledgeable about the prices and charges associated with submitting the registration paperwork to the Secretary of State.
To help you manage your business funds well, we've done extensive research and created this guide with the help of our team of financial advisors, who have been in the industry for almost a decade.
Here’s everything you need to know.
- Forming an LLC in New Jersey costs $130 online and $125 by mail.
- All New Jersey LLCs must file an annual report for $75 to stay compliant.
- LLCs in New Jersey are subject to a 6.625% sales and use tax rate.
How Much Does an LLC Cost in New Jersey?
An LLC in New Jersey costs $125 if filed by mail and $130 for online filing. This amount is for the certificate of formation.
However, you could incur extra costs, including business license, LLC corporate income tax, name reservation, annual report, and registered agent service fees.
New Jersey LLC Filing Fee
The filing fee for an LLC in New Jersey is $130 for online submissions and $125 by mail.
It is a one-time fee for the certificate of formation, and once approved, your LLC is fully authorized to transact in New Jersey.
This offers standard processing of 3-4 weeks, but you can pay additional LLC filing fees of $100 for expedited shipping between 1-2 working days .
Learn more about LLC processing time in New Jersey.
New Jersey Registered Agent Service Fee
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 $49-$300 per year to serve in that capacity.
New Jersey Sales Tax
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.
As a business entity owner, you must register with the New Jersey Division of Revenue and Enterprise Services to sell taxable products or services.
Your Certificate of Authority for Sales Tax (Form CA-1) must be visible at your place of business once you have registered.
This is your authorization to levy a sales tax or utilize sales tax-exempt status certificates.
While certain items and services are exempt from sales tax under the legislation, taxable sale purchases include things like:
- Hotel meals
These are some of the services that can be taxed as well:
- Laundry and cleaning
- Automobile repair
- Lawn mowing
- Cable services
- Storage services
However, sales tax is not applied to all transactions in New Jersey. A tax exemption certificate is required from each seller when a buyer requests a tax exemption on a trade. Different types of sales have various tax exemption certificates.
Other LLC Filing Costs
Other New Jersey LLC costs include the following:
1. Name Reservation
New Jersey allows you to reserve a name to preserve your right to use it temporarily.
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.
You can also use this option if you want to alter your legal name after forming a corporation or LLC.
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 180 days.
Before reserving any business name, look up an LLC in New Jersey and ensure it's valid for use and adheres to all LLC name regulations.
2. DBA/Alternate Name Registration
Your New Jersey LLC is permitted to use several names. The name you use while running a business different from your legal LLC name is known as the "doing business as" name.
In New Jersey, DBAs are known as Alternate Names. Before your business entity can use a DBA, you must submit a Registration of Alternate Name form to the Division of Revenue.
The New Jersey LLC cost of DBA registration is $50.
Once the New Jersey department verifies that your DBA name is unique and available for use, they'll approve your application, and you can transact under that name.
3. New Jersey Annual Report Fee
An annual report will give the New Jersey Secretary of State updated details about the business's activities and financial status. It's also important to show your annual report to the shareholders and potential investors.
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.
The Division of Revenue won't impose a late fee if you submit your New Jersey LLC annual report after the deadline (LLC’s anniversary month). Still, the SOS will arbitrarily disband your LLC if it is late for two years.
To submit your report, visit the New Jersey Annual Reports and Change Services page.
4. LLC Certificate of Good Standing
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.
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
5. Certified Document Copies
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.
6. LLC Operating Agreement
The New Jersey LLC operating agreement is crucial to setting up your company. Although not required in New Jersey, having one is considered best practice.
The operating agreement is a legal contract that describes your company's name, ownership, organizational structure, and general operational practices.
When running a company, you can draft an LLC operating agreement for free or hire an attorney and pay a service fee of $100-$250.
7. Professional Business Licenses and Permits
Professional business licensing is necessary for firms that demand specialized training and skills to deliver services . A professional business license is needed for several professions, including accountants, therapists, engineers, and realtors.
The state board that grants your specific professional license is located on the New Jersey Division of Consumer Affairs website.
For instance, if you're an accountant in New Jersey and are running an accountancy firm, you must obtain a professional license from the New Jersey State Board of Accountancy.
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.
8. Employer Identification Number
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.
New Jersey Foreign LLC Certificate of Authority
A foreign LLC is a company founded in a different domestic state but wishes to expand its branches into New Jersey.
You must submit an Application for a Certificate of Authority to the Division of Revenue and a $125 filing fee to register your international LLC in New Jersey.
Note that the same regulations that apply to domestic New Jersey LLCs apply to your foreign LLC.
You must submit your certificate of formation, name a resident agent service, apply for local and professional business licenses, and file your annual reports and taxes accordingly.
What Is The Annual Fee For an LLC in New Jersey?
The annual fee for an LLC in New Jersey is $75 for the annual report. However, if you have a professional license, you'll have to renew it annually. Also, you must pay the commercial registered agent service fee if you hire one.
Is Sales Tax 7% in NJ?
No, the sales tax in NJ is 6.625%. This rate is applied to consumer goods and digital goods and services.
Do You Need Professional Help With Your New Jersey LLC?
Registering a New Jersey limited liability company can be intimidating and money-consuming if you're new to the business formation process.
Luckily, these professional New Jersey LLC formation services can help you with the entire process.
They'll handle everything, from incorporation to ongoing compliance, and help you negotiate the red tape.
Their team of experts in business formation can also handle various tasks, including drafting a certificate of formation, your LLC agreement, and filing the required legal documents with the New Jersey Secretary of State.