How to start an LLC in New Jersey in 2024

A limited liability company, or LLC, keeps your personal and business assets legally separated. If someone sues you for something your business did or your business incurs debt, your personal finances aren’t necessarily up for grabs. However, each member must report their share of the profits on their personal tax returns. In New Jersey, forming an LLC protects you without automatically subjecting you to an additional corporate tax. 

This guide walks you through nine steps to starting an LLC in New Jersey.

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9 steps to start an LLC in New Jersey

1. Reserve or claim your LLC business name

Before you start your business, you need a business name. A business name must be unique from other business names already registered with the state of New Jersey. New Jersey’s business name search tool helps determine if your LLC name is available. 

If you are not ready to form your LLC but want to reserve your name for future use, you can place a six-month hold on the name to ensure no other business uses it. The service costs $50 and comes with some minor inconveniences. For example, businesses that reserve a name can only go through the online business formation process once six months have passed. If you want to form your LLC before that six-month period is over, you’ll have to fill out paper forms. 

2. Choose a registered agent

A registered agent is someone who can receive and sign legal documents mailed to your business. You can be your own registered agent in New Jersey if you’re 18 or older and have a physical address within the state.

However, serving as your own registered agent can be cumbersome. You cannot leave the office during all regular business hours throughout the year, even for business travel or paid time off. You also run the risk of having embarrassing paperwork, such as notices your business is being sued, delivered in front of customers or employees. Finally, you must publish the physical address of your office where you receive notices, a hit to your privacy, especially if you run a home-based business. Alternatively, you can hire a registered agent. 

As you search for the best registered agent, consider factors other than price. For example, if you plan to expand to other states or hire remote employees, you must have a registered agent in all states where you do business. So, look for a registered agent service with offices in all 50 states. Consider also looking for providers that offer mail forwarding (instead of only digital copies of your mail), email or text alerts of documents received, filing deadline alerts and an online portal to make document management easier. 

3. File for your certificate of formation

Submitting an application for a certificate of formation marks the beginning of your LLC. To file, you must have the following information prepared: 

• Your LLC’s name. 
• Your business structure (in this case, an LLC). 
• A description of your business’s purpose. 
• Your LLC’s street address. 
• The name of your New Jersey-based registered agent and their phone number. (Ask your registered agent office for this number.)
• The names and address of all officers and members. 
• A payment method (such as a credit card). 

You will also be asked for your effective date (start date) and your employer identification number (EIN). At this point, you will not have either of these data points because a certificate of formation is required to apply for an EIN (see next step) and confirm your effective date. So, skip this part of the form by clicking “Continue.”

You can file the certificate using New Jersey’s business navigator tool. Once you have provided all information, you will be asked to pay a $125 filing fee. Once you submit your document, you will receive an email with a formation certificate in PDF form. Save and print it for your records. You will also receive a link with information on where you can pick up a hard copy of your certificate for your files.

New LLC reporting requirement alert 

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has implemented a new reporting requirement for all non-exempt LLCs starting on January 1, 2024. 

The requirement is called the Beneficial Ownership Information (BOI) report and it is estimated to only take about 20 minutes to complete. 

Here’s what you need to know:

• LLCs formed before January 1, 2024 have until January 1, 2025 to file.
• LLCs formed between January 1, 2024 and January 1, 2025 have 90 days to file from the confirmed date of the businesses’ registration.
• New LLCs formed after January 1, 2025 will have 30 days to file from the confirmed date of formation.

For all details, FAQs and to file, visit FinCEN’s BOI website. 

4. Register for an EIN

An employer identification number – or EIN – is issued by the IRS. You need an EIN to complete business tasks like filing federal taxes and issuing W-2s to employees. You will also need it to fully register your business with the state of New Jersey.

To apply for an EIN, you need to provide the social security number of the responsible party, or the person who controls, manages or directs the LLC and its funds and assets. An entity cannot serve as this responsible party. You also need your LLC’s name, mailing address, business type (LLC), reason for applying (started a new business) and date of business formation.

The easiest way to apply for an EIN is online using the IRS’s employer ID numbers page. When you apply online, your EIN is issued immediately. The application takes about 15 minutes to complete and must be completed in one sitting. Once you’ve submitted the application, you will receive a confirmation notice immediately, complete with your EIN. Keep this confirmation notice in your records for future use. 

5. Create an operating agreement

While the state does not require an operating agreement to start an LLC in New Jersey, it’s strongly recommended. It outlines key business considerations, setting a legal foundation for how the business will be run. It covers topics such as: 

• Tax and accounting considerations. 
• The number of your LLC members. 
• The structure, voting rights, duties and responsibilities of your LLC’s management and members. 
• Member’s investments and ownership percentages. 
• How profits are shared. 
• How the LLC can be dissolved. 
• How new members can be inducted. 

Setting this foundation in a legally-binding document can help prevent or mediate future disagreements among members, and it’s often required to open a business bank account. In addition, every state has default rules for operating an LLC, some of which may be contrary to your business wishes or needs. Having an operating agreement on file overrides those rules. 

Since an operating agreement is legally binding between the members who sign it, it is advisable to seek assistance with this step. LLC formation service companies like LegalZoom and Rocket Lawyer offer free templates for creating an operating agreement. In addition, it’s advisable to seek legal counsel to oversee the process, a service both providers can offer. 

6. File Form NJ-REG

Before you start operating your business in New Jersey, you must register with the New Jersey division of revenue and enterprise services (DORES). You can do so using Form NJ-REG. This form is used to register your business for paying taxes, including income, sales and use taxes and payroll taxes. To fill out this form, you need the following information:

• Your EIN. 
• Your NAICS code. (To find this code, look up your industry using the NAICS Code Drill-Down Table.)
• Your New Jersey business code (a 4-digit number you can find on the New Jersey business codes page).
• Your entity ID number (found on your certificate of formation).
• Your name and contact information as the owner.
• The number of potential employees.
• The anticipated date of first withholding for employees’ wages.
• Your business’s street address.

After you complete form NJ-REG, you’ll be immediately issued a business registration certificate in a printable format and a paper copy in the mail within a few weeks. You need to display this certificate in your place of business. 

Also note that the business registration certificate will include a 12-digit New Jersey tax ID number, which will be important for business financial tasks such as opening a bank account and filing your taxes. This number may also be used to determine your LLC’s eligibility for state grants, loans and special certifications. 

7. Open a business bank account

Once you become an LLC, you must keep your personal and business finances separate – even if you’re a single-member LLC. If you mix your personal and business finances, you could risk losing your limited liability status in future lawsuits. Open a business bank account to keep your business and personal finances separate.

Financial institutions require a lot of paperwork to open a business bank account. Visit your local bank prepared with the following documents: 

• Your LLC’s certificate of formation.
• Your LLC’s EIN.
• Your business registration certificate.

It is also conceivable that you will be asked for articles of organization or an operating agreement, which is why it’s good to have these documents ready even though the state doesn’t formally require them.

Many banks require a minimum deposit to open an LLC bank account, often around $100. Some also require you to maintain a minimum balance, which can be hefty. Check with several local banks to determine which offers the best deal to fit your business needs and budget.

8. Check if New Jersey requires a business license for your industry

Many businesses in New Jersey require licensure before you open your doors to the public. You must research which industry is responsible for issuing licenses to your business type and those within your industry. 

For example, if you’re an acupuncturist starting an LLC, you must register with the New Jersey division of consumer affairs. If you’re starting a business as an exterminator, you would register with the New Jersey department of environmental protection. Using New Jersey’s licensing and certification guide, you can find the appropriate agency. 

9. Maintain your business with annual filings

You must file an annual report to keep your business in good standing with the state. You must file every year by the last day of the month in which you filed your certificate of formation. 

Annual filings in New Jersey are relatively simple. It involves using the New Jersey division of revenue online annual report filing system to document that your LLC’s registered agent, business address, officer information and workers compensation policy are current. The fee for filing an annual report is $75. 

Featured LLC service offers

ZenBusiness

Learn More

Via ZenBusiness’ website

Free version available

Yes

Lowest published package price

$199

Live chat

Yes: Human

LegalZoom

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Via LegalZoom’s website

Free version available

Yes

Lowest published package price

$249

Live chat

Yes

Northwest Registered Agent

Learn More

Via Northwest’s website

Free version available

No

Lowest published package price

$39

Live chat

Yes

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