How Much Does it Cost to Start an LLC in New Jersey?

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. 

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.  

Essentially, the purpose of a registered agent is to ensure compliance with state laws and to make sure all official matters are handled correctly and in a timely manner. Having one person or entity responsible for state documents helps ensure nothing is missed, avoiding potential potholes.

Documents your agent may receive include:

• Tax forms and documents
• Government correspondence
• Legal documents
• Summons documents in case of a lawsuit

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. 

Using a Registered Agent Service   

A registered agent service is a professional service that will handle official correspondence and documents for your business. Registered agents ensure that all official correspondence is handled on time and properly filed. They also keep track of deadlines and send reminders of things you need to file, such as tax forms and annual reports.

You need a service that has an office in New Jersey, but you may want to choose a national service so you have the flexibility to form LLCs in other states. Other than that, you should choose a service that offers:

• Compliance management, to send reminders of key deadlines 
• Document copying and digital storage so you can access documents online
• Availability during the required hours, with prompt customer service
• Service in all 50 states and US territories

Costs for a registered agent service range from $50 a year up to $300 or more. Several online firms, such as ZenBusiness and LegalZoom, 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. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties. If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

The most common permits and licenses include: 

1. Business operating licenses may be required by the city and the state to allow you to operate. 
2. Industry-specific licenses may be required, depending on your type of business. Businesses involved in construction, childcare, plumbing, electrical, food and liquor, insurance, finance, landscaping, and architecture all require licensing, for example. In some highly regulated industries, you may require licensing from a federal agency, such as the FDA or Department of Transportation.
3. Zoning permits are issued by municipalities to ensure you’re operating in an area in which you’re allowed to operate.  
4. Building permits verify that the building you’re operating in is up to code. Home occupation permits, which some areas require, allow you to operate a business from your home.
5. DBA permits allow you to do business under a name that is different from your legally registered business name.
6. Sales tax permits allow you to sell products and collect sales tax. 
7. An employer identification number (EIN) is required if you plan to have employees, no matter what your business entity type. 
8. Health licenses and permits are required for certain businesses based on industry, and you will be required to maintain health and safety standards. Environmental permits are also required for certain industries in some locations.
9. Fire permits certify that your business is up to fire safety codes. Depending on your location, this may be required for all businesses, while in other areas it’s required only if you work with flammable materials.
10. Sign permits may be required for your location or other signage if there are rules about sign size and location.

Again, check with state and local government offices for requirements based on your location and industry, or visit MyCorporation’s Business License Compliance page.

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 like MyCorporation. 

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 LegalZoom. 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. Registered agent service (mentioned above) is very often included in these plans.

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. 

Annual Fees

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. 

Tax Reports

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. 

In the table below, you’ll find the cost of forming an LLC in New Jersey.

Conclusion

As you can see, starting an LLC in New Jersey takes a lot of work. But it doesn’t have to be expensive if you’re willing to shoulder much of the bureaucratic burden. Still, it’s advisable to consult with an attorney or hire a business formation service for guidance. 

In most cases, the benefits of making your business an LLC far outweigh the costs and paperwork.