When starting a business, you must decide what type of legal entity to form it as. A limited liability company is one of several entity types you can choose.
What do you need to do to form an LLC in New Jersey?
What is an LLC?
LLCs are simple to form and maintain and do not have shareholders. However, like a corporation, the members of an LLC do not have any legal liability for most business debts.
How do you form an LLC?
The rules for forming an LLC vary by state. In New Jersey, you must register an LLC with the New Jersey Division of Revenue. This is a multi-step process:
- Name your business.
You must select a business name that is different from other businesses on file with the DOR and your business name must end with “Limited Liability Company,” “LLC” or “L.L.C.”
- Choose a registered agent.
Your registered agent will accept legal and official mail for your LLC. Your registered agent can be an individual or a business, but they must have a physical address in NJ.
- Get a NJ business license.
Some types of businesses in NJ need to obtain a business license. If you intend to sell taxable goods or services, you must also register to collect sales tax.
- File a certificate of formation.
This certificate establishes your authority to operate as a NJ LLC.
- Draft your operating agreement.
This step is optional in NJ, but you may want to do it anyway.
- Choose how you want the government to tax your business.
You can choose for the government to tax your company as a pass-through entity or corporation.
Forming an LLC in NJ is relatively straightforward. However, it is important to complete the steps correctly.