If you’re thinking of starting a limited liability company (LLC) in New Jersey, you’ll want to know in advance how much it’s going to cost. LLC formation fees vary by state, so it’s wise to do a bit of research and prepare yourself, and your new business, for the necessary steps.
LLC Costs in New Jersey
|Certificate of Formation||$125
|Certified Copy – Certificate of Formation||$25 for certification, plus $10 for the first page and $2 for each additional page
|Certificate of Good Standing||$50
|Registered Agent Service||$50 – $300
|Operating Agreement||$0 – $2500
|Business Licenses and Renewals||varies – check with state and local government
Certificate of Formation Cost
In New Jersey, you form an LLC by filing a certificate of formation, which requires a $125 fee. It’s a simple process you can do online at the Division of Revenue and Enterprise Services website. If you file online, your LLC should be approved and formed within 10 days.
If you need a certified copy of the Certificate of Formation, the fee is $25 for certification, plus $10 for the first page and $2 for each additional page. If you need a standing certificate, there is a $50 fee. If you’d like the state to hold your LLC name before you register, you can apply here for $50 to reserve it for 120 days.
You’ll need to mail the form with the fee to:
NJ Division of Revenue
PO Box 308
Trenton, NJ 08646
Registered Agent Cost
In New Jersey, you are required to have a registered agent, also known as an agent of service in process. A registered agent is a person or business authorized to accept and respond to legal, tax, and financial documents on behalf of your business.
In New Jersey, you can be your own registered agent, or it can be another member of the LLC. An individual who is not a member or a professional agency can also serve as the registered agent for your LLC.
Costs for a registered agent service range from $50 a year up to $300 or more. Several online firms, such as ZenBusiness and Northwest Registered Agent, provide quality services at reasonable rates.
Business Licenses and Permits Cost
Starting an LLC requires obtaining the required licenses and permits from local, state, and federal governments. Fees for these vary, but most costs are minimal.
Federal regulations, licenses, and permits associated with starting your business include doing business as, health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific permits.
You may also need state-level and local county or city-based licenses. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments to learn more.
Business license fees depend on the type of business and the agency issuing the license or permit. On average, business licenses cost between $100 and $300+, plus renewal fees.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package ($149 + state fees). They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
Operating Agreement Cost
In New Jersey, your LLC is not required to have an operating agreement in place. But it’s highly recommended, as an effective operating agreement can help avoid disputes and lawsuits that could threaten the stability of your LLC.
An LLC operating agreement is an important legal document that details who owns the business and provides essential information pertaining to member duties. An LLC operating agreement establishes the financial relationship between members and the basics of the working relationships between those members and the managers who oversee daily operations.
The operating agreement is not filed with the state, but instead remains private. It’s advisable to hire an attorney to ensure your operating agreement is thorough and legally binding.
Creating an operating agreement is free if you just draw it up yourself. Alternatively, you can pay around $100 for guidance from an online business advisory.
This is an extremely important document, so it’s recommended that you use the services of a specialist or legal firm. If you choose to hire an attorney to help you create this document, the price will be around $500 for a single-member LLC and $2,500 for a multi-member LLC.
LLC Formation Service Cost (Optional)
Forming an LLC in New Jersey tends to involve a lot of red tape and paperwork, so for many entrepreneurs just starting out it’s a good idea to hire an experienced service provider.
Some of the best services for forming an LLC are ZenBusiness and Northwest Registered Agent. LLC Formation service will take care of all the key steps, keeping you updated while allowing you to focus on launching and growing your business.
The cost of professional services depends on your requirements and LLC formation plan. Most LLC service providers offer different plans/packages and there are many LLC services that offer free LLC formation.
Ongoing New Jersey LLC Costs
Every state has a different fee structure and timelines for LLC documents and licenses. It’s important to stay up-to-date or your business could face significant penalties. The fees and timelines for New Jersey are detailed below.
You’ll need to file an LLC annual report with your state to keep your LLC in good standing. The fee is $75, and you can file online at the Division of Revenue and Enterprise Services’ website.
In New Jersey, LLCs with more than one member that are treated as a partnership must file an annual tax return. The rules are as follows:
For New Jersey Gross Income Tax purposes, every partnership or limited liability company (LLC) that has income from sources in the State of New Jersey, or has a New Jersey resident partner, must file the New Jersey Partnership return, Form NJ-1065.
Form NJ-1065 is no longer solely an information return. Form NJ-1065 must be filed by a partnership even if its principal place of business is outside New Jersey. Tax may be required to be remitted on behalf of nonresident partners.
Tax is imposed on the partners’ income and gains derived from a partnership. Income and gains derived from a partnership are taxed whether or not they are actually distributed.
Business License Renewal Fees
Some business licenses and permits must be renewed periodically, which may have a small associated fee. In New Jersey, a sales tax permit has no fee and does not require renewal.
Other business-specific licenses and permits, such as permits for retail food establishments, must be renewed annually. You’ll need to check with the offices that issue your required licenses and permits, at both the state and local levels, for renewal requirements and fees.
It’s best to set calendar reminders for all your license renewals so that you stay in compliance with the law.