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New Jersey has state-specific rules for forming an LLC. Since every state has its own processes for business formation, it’s important to do your research on New Jersey’s requirements. Here are the steps you’ll have to take.
Step 1: Pick Your New Jersey Business Name
New Jersey requires every LLC to have a unique business name. You can check if your desired name is available by consulting the New Jersey Department of Treasury’s online database. If you want to, you can reserve your chosen business name. This might be something you do if you want to use a specific name but aren’t ready to submit the business registration paperwork yet. You can reserve a business name for up to six months.
Step 2: Research and Apply for Necessary Licenses or Permits
Depending on your business model, you may need to get a special permit or license to operate in New Jersey. The state has a list of potential credentials you’ll need according to your industry. For example, if you want to practice as a certified public accountant, you need a license approved by the NJ Division of Consumer Affairs Board of Accountancy. If you want to work in cable TV wiring installation, you’ll need to be approved by the Board of Examiners of Electrical Contractors.
Step 3: Find a Registered Agent
New Jersey requires businesses to designate a registered agent. The registered agent is approved to accept formal correspondence, including legal documents and government notices, on the company’s behalf. The registered agent must have a physical address in New Jersey. While you may serve as your own registered agent, many entrepreneurs prefer to use a professional registered agent service.
Step 4: Complete New Jersey’s Online Business Formation
To establish a business in New Jersey, you must complete a state-specific application to receive a Certificate of Formation. You can complete this online. The process will ask you to designate what type of business you’d like to start, plus the business name. You’ll then be asked to specify which business designator you’d like to use, such as LLC or L.L.C. Next, you’ll be asked to provide your Employer Identification Number (more on that below) and, if desired, North American Industry Classification System (NAICS) code. This is a federal identifier used to collect business data. You’ll also be asked to provide a description of your business’ purpose and its address, as well as details regarding the LLC’s members (its owners) and registered agent.
Step 5: Write an Operating Agreement
During the online LLC registration process, you’ll have the opportunity to add provisions. For example, you can designate a date upon which the LLC should be dissolved. This is also an opportunity to enter the details of any operating agreement you may have established for your LLC. Although New Jersey doesn’t require an operating agreement, it’s a helpful document to have. It covers details like each owner’s percentage of ownership, voting rights, and responsibilities opposite the LLC. An operating agreement can also cover terms that may be relevant for the future, like buyout and buy-sell rules.
Step 6: Obtain Your Employer Identification Number (EIN)
If you plan to hire employees, you’ll need an EIN. You can apply for this for free from the Internal Revenue Service (IRS). The fastest and easiest way to get your EIN is online, although you can also apply via fax, phone, or mail. When doing business in New Jersey, you’ll also have to register with the state’s Division of Revenue and Enterprise Services (DORES) using form NJ-REG. You’ll then get guidance on the various taxes your business may have to pay, such as income tax, sales and use tax, and payroll taxes. You’ll also receive a New Jersey Tax ID number and Business Registration Certificate (BRC). You have to display your BRC in your business.
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