Forming an LLC in New Jersey (Preliminary information)
In this article, we discuss in detail the costs of forming an llc in New Jersey, how you can form your company at the most affordable price, and the steps you need to take.
Known as the “Crossroads of the East,” New Jersey is considered the largest chemicals-producing state and is home to more than 15,000 factories. If you plan to be a major player in a growing economy, you can form your new LLC in New Jersey.
New Jersey has a large and growing economy. Thousands of new LLCs are formed each year in New Jersey, totaling more than 260,000 active LLCs in the state. New Jersey is the seventh largest state in Usa in terms of gross domestic product. It also ranks fourth in terms of job formation and creation.
New Jersey LLCs are a more convenient and flexible business type than Corp-type companies. LLCs protect your personal assets from lawsuits and penalties filed against you.
in New Jersey are simple to set up and have low maintenance requirements. It has various options and flexibility regarding taxation. It allows multi-member LLCs from single-member businesses, which is why it's so popular.
In the state of New Jersey, the annual filing fee for LLCs is $75. In the initial setup, the state charges the entrepreneur a $125 filing fee, but each subsequent year the company owner must pay the state $75. Although the entry fee may be a little higher than some states, the $75 annual filing fee is quite reasonable.
Costs
LLC Company Formation Prices
| Service | Price | One-Time Payment | Annual Payment |
| Fee to be Paid to the State During LLC Company Formment | 125$ | ✔ | – |
| Annual Filing (Franchise Tax) | 75$ | – | ✔ |
| Phone Number $2/Month | 20$ | – | ✔ |
| Total: | 125$ | 95$ |
Registered Agent Selection
When you decide to form an LLC in Usa, you have to get the service of a Registered Agent. These organizations are authorized by the state. There are many companies that do this job and each agency offers different prices and services.
Below is a list of the most formed and reliable ones. You can also read a review of all of them by clicking on them.
Agency List
Northwest ($39, Address included) *Recommended
Inc Authority (Free)
MyCompanyWorks ($79)
CorpNet ($79)
the full list and detailed review page of Registered Agent companies that establish LLCs from this link .
Additional Costs
* EIN is available free of charge through the IRS. You can fill out a form called SS4 yourself and fax it to the IRS. There is a detailed explanation in this article . If you wish, registered agents can obtain the EIN for you during installation for a fee, and you can add the service to the installation for an extra fee.
** Company setup fee varies depending on the Registered Agent company.
*** In America, the virtual address is not included in most Registered Agent packages. When you receive service through Northwest Registered Agent, the address is included in the package and you do not have to pay an extra annual address fee. this company for the address for $15 (one-time payment), or there are different economical solutions in the article Companies Providing Virtual Addresses in America
How to Form an LLC in New Jersey? Steps
You can form a remote LLC online in the state of New Jersey. For installation, you need a Registered Agent and a postal address in the USA, other details are below.
- Determine Your Company Name: First, you must determine the name of your LLC company. There should be no conflicts with company names already in the state database. So do a search on the state website Choosing a Name for an LLC for name rules .
- Get a Domain Name for Your Company: Check if the website domain name you will create for the business name you choose has been registered before. With Namecheap you can quickly register an llc domain name so that no one else can get and use your domain name in the future.
Find a domain name starting from $0.88
powered by Namecheap
- Get a Phone Number with an American Area Code (Not Required): Zadarma for the virtual number . It has the ability to receive SMS and mobile application support. There is a monthly fee of $2. Zadarma from this link and start using it by installing their mobile application.
- Choose a Registered Agent: Choose a Registered Agent to set up your company and keep it active. There is a lot of information and pricing on the review page here
- Prepare an Operating Agreement: This is an operating agreement that determines the management style and rules of the company. It is not required to be created in many states, and it is not required in this state either. It is recommended to create a contract, but you do not need to mail this contract to the state, just keep the contract you prepared and signed. Zenbusiness or Northwest this operating agreement document for you free of charge during company establishment . If you have established your company for free from an agency such as Incfile and do not want to pay for documents, you can create one yourself for free, details and how to do it in this article .
The approval period for an LLC company takes a maximum of 7 days for the state of New Jersey. Sometimes transactions can be completed earlier. However, if you want faster installation and are in a hurry, you can shorten the process by paying extra to the Registered Agent. Incfile, you can reduce this time to 1-2 days for $50.
After the installation process is completed, your agency will deliver the company installation documents to you via e-mail or via their panel. Passport or ID is not required during LLC formment in Usa.
What happens after your LLC company is approved in the state of New Jersey?
- After the company is formed, your agency delivers your company formation documents to you digitally. You can ask your agency to mail you original signed copies for an extra fee.
- Once the company is incorporated and you receive the documents (digitally), obtain a Federal Identification Number (EIN) from the IRS. Without EIN, you cannot open a bank account or register in payment systems. If you want an EIN, you can get it from the agency by paying an extra fee during the company establishment phase, or you can fill out the SS4 form yourself and fax it to the IRS. the guide here .
- To maintain the health of your LLC after formment, pay $75 state tax (Franchise Tax) and registered agent fees every year.
State Requirements and Taxes
Federal Taxes: As is known, LLCs are taxed individually (individual to the owner of the company) unless otherwise stated. This means that LLCs do not pay income taxes directly to the federal government. In this case, company owners indicate their business income and losses in their personal statements. LLCs are flexible in their tax structure; you can choose to be taxed like a corporation if you prefer. In this case, you will need to submit a separate corporate tax return.
State: New Jersey LLCs are processed on the owner's personal tax return, like federal taxes, unless the LLC adopts a corporate tax structure. Unlike some states, New Jersey does not impose a franchise or privilege tax on LLCs, which may seem like a nice perk, but you may have other tax requirements as well. Taxes may vary depending on your income . You can find detailed information about the state's tax system here
Sales Tax: LLCs that make retail sales to the people of New Jersey are required to collect and remit sales tax to the state. Its current rate is 6.6%. You can learn more about sales taxes here
If You Have Employees: New Jersey LLC owners who have employees are required to pay some taxes. Employers must pay withholding tax on employee wages. more about New Jersey withholding taxes here
Extra Taxes: In addition to these general taxes, the state of New Jersey also imposes specific taxes on certain industries. a more comprehensive list of New Jersey's business taxes here. However, these sectoral taxes are mostly for businesses that are established and have a physical location.
For more information about taxes, you can check out the article Taxation in America
These special guides may also attract your attention.
- I recommend you to read this guide to establish your LLC company in the state of Kentucky for $ 55 all-inclusive.
8 Comments . New Comment
We had a shop that we opened on Etsy through a friend of mine living in Usa. We made sales of $1600 in 2021. (His company is based in New Jersey). Now, in 2022, I formed an llc in Wyoming and registered that shop under my name. With my EIN number. I am getting a warning on Etsy for 2021 taxes. It's about the 1099K form. My friend's SSN was registered at that time. Will he or I have a problem? Say what?
You will have problems. Talk to a cpa and state that you received a 1099k, a tax return must be filed.
Even this is a sufficient answer, thank you! From what I understand, the tax is actually related to your Intra-US income rather than the company, e.g. If I already have an llc and income within the USA, I will be subject to tax audit and it will be mandatory for me to declare. Actually, it's not that I'm afraid, it's a question that has been on my mind for a long time. It came to me while I was browsing your page. Thank you very much again for this valuable information...
In fact, there is no such thing as an audit. When your US income reaches a certain level (for example, when you reach $X turnover in X state), you may receive a notification from the platform you use. For example, if you collect payments with stripe, when your income within the USA exceeds certain limits, you will receive a notification called 1099K, and in accordance with this notification at the end of the year, stripe will automatically report the income you have earned by reporting your identity information and company information to the IRS.
When you receive this type of notification, you must share this information with your accountant and make the declaration. Of course, if you can document the expenses you have incurred, these expenses will be deducted from the income tax payable during the declaration.
Probably the logic is similar on platforms such as Amazon and Ebay ETSY because all companies there act in accordance with tax regulations.
So what happens if you don't receive any notification at the end of the year? Nothing happens because the income is not sufficient to be reported to the IRS. There is no need to pay taxes on unreported income.
Note: Do not consider these as tax advice, this information was written in line with the information obtained from the tax pages of Stripe and marketplaces. You can get more detailed information from your accountant.
Your information is really valuable “at least for me!” :)” I actually understood what you said, this is probably valid for marketplaces such as Amazon, Ebay and some virtual banks. Ex. Like MercuryBank, as far as I've heard, no tax is paid on marketplaces such as "Amazon, Ebay, Etsy" up to a turnover of $10,000! But as you said, it would be better to discuss this issue with a "Cpa"! Still, it was good as a preliminary information, thank you!!!
You're welcome, good luck.
I have a humble question, maybe my question will help those who don't know and want to learn. My question is: If I want to form a new company and do so, will I be stuck with the tax declaration in 2022? Actually, I have such an intention, but I may postpone it for a while!
You must file form 5472 next year (early April 2022) for an LLC you formed this year under all circumstances, but depending on your company's turnover, you may not file taxes. The same questions are constantly asked about these tax transactions, but the answer is always the same. In fact, taxes depend on your citizenship status, whether your income is within the US, if you have income within the US, the amount of it, and whether you have an effective income that connects you to the US.
Since it is a very general question, you can review your situation and know best whether you will pay taxes other than form 5472. Because accountants cannot predict where and how much your income will come from, it is impossible to know what type of tax will be paid and at what rate.