LLC Fees In New Jersey: Required And Optional Costs

Many entrepreneurs choose to form New Jersey limited liability companies (LLCs) because of the advantages that the business structure offers.

Aside from the protection of the personal assets of owners against the liabilities of the company, it also provides flexibility when it comes to taxation. However, as a business owner, you should be aware of your obligations to the state as well. Among those are the required filings and various LLC fees.

Types Of LLC Fees

While the costs of forming and maintaining LLCs vary depending on the state, the types of fees remain the same. There are two main categories of expenses associated with an LLC. The first one refers to the costs of forming a business. The second type has to do with the costs of maintaining your company.

Forming An LLC

Name Reservation

All New Jersey companies need to follow the naming guidelines of the state. Among those is distinguishability. Your LLC needs to have a unique name. To ensure this, you will have to check the availability of the name you want to use. You can also opt to reserve the name for 120 days. This step is optional, so you can choose to skip it. However, if you are not ready to officially start a business but do not want another business entity to take the name you’re after, it may be best to file a reservation application. This will cost you $50.

Public Records Filing

The first step in the registration process is to file formal paperwork with the Division of Revenue. Doing this will ensure the legality of your business operations in the state. The filing fee is $125. However, if you choose to file online, you will have to add a $3.50 credit card service fee. You can also opt for expedited processing if you file by fax or in person. The two-hour service will cost you an additional $500. For a one-hour service, you will have to pay another $1,000.

Registered Agent

All New Jersey companies need to appoint and maintain a registered agent. You will need to list the name and address of the registered agent on your formation documents. You can either appoint an individual or a company.

Here are the requirements for a registered agent in New Jersey:

  • If you choose an individual, they have to be at least 18 years old.
  • If you appoint a third-party organization, it has to be authorized to transact in New Jersey and is in good standing with the state.
  • The registered agent has to have a physical street address in New Jersey.
  • Your registered agent should also be available during normal business hours.

Your registered agent plays an important role in ensuring business compliance with state requirements. They serve as the point of contact for all state-related communications. 

Ongoing Compliance

Annual Report

Your obligations do not end once you finish the formation process. A New Jersey LLC has to file annual reports to confirm and update the ownership and contact information of the company. It comes with a $78 filing fee. The state does not impose a late filing fee. However, if you fail to submit annual reports for two consecutive years, the state may administratively dissolve your company. The deadline for your annual report will be on the month when you formed the LLC.

Business Licenses And Permits

Depending on the industry you are in, your New Jersey LLC may need to secure certain business licenses and permits. Generally, the state does not have a statewide business license. You will have to check with your city and county if your LLC needs to secure local licenses. Among those are professional, occupational, and safety licenses.

Business Taxes

In most cases, LLCs enjoy pass-through taxation, so each member has to file their profits on their individual tax returns. However, you will have to register your LLC with the Division of Revenue within 60 days of organizing your company. Doing this will assure the state that you know your tax obligations. This registration is free of charge.

If your LLC opts for the same tax treatment as a corporation, you have to file Form 2553 with the IRS. After that, your company has to file a separate tax return. You will also need to pay a corporation business tax on a state level. The rate will depend on your company’s profits. If your LLC chooses partnership tax treatment, then you will have to pay partnership taxes. This filing costs $150 per member.

Employer Taxes

If your New Jersey business has employees, you will have to pay employer taxes. Aside from the IRS, your company also has such obligations with the state.

If that is the case, you will have to register your LLC first with the Department of Treasury. Then, you will have to withhold income taxes and submit them to the department regularly. You may also need to register for unemployment insurance taxes. If you do that, you will have to file quarterly contribution reports.

Sales Taxes

If your company sells goods, you will have to collect and file sales taxes to the state. If that is the case for your LLC, you have to register with the Department of Treasury and request a certificate of authority to collect sales tax. Then, you will have to file a return monthly or quarterly. New Jersey imposes a flat 6.625% statewide sales tax rate.

Getting The Right Partner

When you run a business, you have to take care of multiple responsibilities. You may not have the time to handle the formal paperwork and filing processes that New Jersey requires. Fortunately, you can hire the services of a third-party organization like DoMyLLC.

Our team of experts can assist you with the registration process. We also specialize in business compliance solutions. We offer customized solutions so you can be sure that the service you are getting is suitable to the needs of your company. Contact us today to learn more about business compliance and LLC fees in New Jersey.

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