How much does an LLC cost in New Jersey? (details)
Forming a New Jersey LLC entails more than just paying the first filing fee; it doesn't have to be extremely expensive.
We outline all up-front and continuing costs for a New Jersey LLC and advise how to successfully cut these out of the budget.
How Much Does It Cost to Start an LLC in New Jersey?
There is a $125 filing fee for the Certificate of Formation with the Department of State when forming an LLC in New Jersey.
This is important in creating your LLC's legal standing, allowing it to function under New Jersey regulations if approved.
Apart from the LLC filing fee mentioned above, additional expenses are associated with establishing a New Jersey LLC (Limited Liability Company).
Costs of Forming a New Jersey LLC
Forming an LLC includes a one-time state filing fee of $125.
There are also ongoing fees (like a $75 Annual Report fee and potential business license fees), which we discuss below.
LLC Costs in New Jersey
| Requirement | Cost |
|---|---|
| LLC Name | $0 |
| Registered Agent | $0 or $125 per year |
| Public Records Filing | $125 (one-time) |
| Registration | $0 |
| Operating Agreement | $0 (free on our site) |
| EIN Number | $0 (free to the IRS) |
| Annual Report | $75 (per year) |
| Minimum Partner Tax | $150 per member (if 2 or more members) |
| Taxes | varies (filed and/or paid every year) |
Reserving a business name in New Jersey entails a fee of $0
The creation of your New Jersey LLC Name Reservation is completed simultaneously if you want to file online. An additional $0 filing fee is required for an online name reservation when filing online.
Remember to include the Name Reservation with your application if you want to file by mail.
But before forming your LLC, you have to wait for the Name Reservation to be approved. Even though filing by mail can save you a few bucks, it can take longer to form your LLC.
New Jersey Registered Agent Fee ($0 to $125/ annually)
Under New Jersey law, every LLC formation requires the appointment of a Registered Agent.
Your New Jersey Registered Agent acts as the liaison for legal documents and state notifications on behalf of your LLC, necessitating a physical address within the state and availability during regular business hours.
You can appoint yourself, a trusted associate, or a family member as your Registered Agent without incurring additional expenses.
Alternatively, hiring a Registered Agent service costs between $100 and $300 per year. These services offer additional business support and safeguard your privacy.
Hiring a Registered Agent service is a good idea if:
- You lack a physical address in the state (New Jersey law mandates Registered Agents to have an address within the state).
- You prefer to keep your address private (some companies allow you to use their address for confidentiality).
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The filing fee for a New Jersey LLC Certificate of Formation is $125
In New Jersey, forming an LLC requires paying the Department of State a $125 filing fee for the Certificate of Formation. This paper creates your LLC legally if it is accepted.
After formation, you only need to pay the $102 one-time charge; after that, you won't need to pay any more monthly or yearly fees to keep your New Jersey LLC active.
The form used to establish an LLC can vary by state; it may be called the Certificate of Formation.
In New Jersey, it is specifically known as the Certificate of Formation. Despite these variations in naming, they all serve the same purpose to create your LLC legally.
New Jersey LLC Registration ($0)
Every LLC in New Jersey must register with the Division of Taxation within it's of formation (or within 15 days of starting business activities).
This process is free of charge ($0 filing fees) and can be completed online. It should take approximately 15 minutes to finish.
The mail registration form is called the NG-REG, but when you register your LLC online, it's called the Business Registration Application.
LLC Operating Agreement Fee ($0)
A New Jersey LLC Operating Agreement functions as a written contract among the LLC's members. It outlines specific details regarding ownership, how the LLC is managed, and the distribution of profits.
Both Single-Member and Multi-Member LLCs should create an Operating Agreement, maintain it within their business records, and provide each member with a copy.
Online services generally charge between $50 to $200 for crafting an LLC Operating Agreement.
LLC EIN Number Fee ($0)
An EIN, also referred to as an Employer Identification Number or FEIN (Federal Employer Identification Number), is essential for handling tax filings, setting up an LLC bank account, and potentially facilitating employee hiring.
While some platforms may charge a fee, you can obtain an EIN for your LLC free of charge directly from the IRS. The process to apply online is simple and typically takes only a few minutes to complete.
New Jersey LLC Annual Report Fee ($75/year)
In New Jersey, the LLC Annual Report is referred to as the Periodic Report.
The state requires you to keep your LLC's information up to date by filing a New Jersey Periodic Report annually.
This keeps your LLC in good standing and compliance with state law so it can continue operating. You simply confirm the information on your Periodic Report, file it with the New Jersey Department of State, and pay the Periodic Report filing fee.
The New Jersey LLC Periodic Report is free annually. These costs are required each year for the duration of your LLC's existence.
✎ Note:
Other business entities may file different reports, but LLCs only need to file the Periodic Report each year.
New Jersey Business License and Permit Fees
The locations and industry sectors in which your LLC operates in New Jersey may require you to apply for additional business licenses or permits. For your LLC's specific operating area, for example, it may be necessary to obtain a city business permit.
Location and industry specifics can affect the cost of these licenses or permits. These costs are usually fair. Local governments such as towns, cities, or counties are responsible for administering some licenses and permits, while the state issues others.
LLC Taxes
New Jersey LLC owners face a range of tax obligations, leading to varying annual costs.
Some of the taxes LLC owners pay include:
- Federal taxes
- State income tax
- Local income tax
- Business taxes
- Self-employment taxes
- Sales and use tax
- Payroll tax (if you have employees)
- Property tax (if the LLC owns property)
The Taxes of Your New Jersey LLC taxes are affected by your industry and business activities, making it difficult to predict. Every business is different, and the taxes your LLC owes depend on your specific situation.
✎ Note:
Typically, a Single-Member LLC is taxed similarly to a Sole Proprietorship, while a Multi-Member LLC is taxed similarly to a Partnership.
Hiring an Accountant
Accounting fees can vary, but in general, expect to pay about $300 a year for basic tax returns and up to $900 for more comprehensive filings.
The best person to help you determine your small business tax liability in New Jersey is a certified accountant.
While accounting costs can vary, you should generally budget $300 for simple tax returns and up to $900 for more complicated filings annually.
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✎ Note:
Accounting fees can vary, but in general, expect to pay about $300 a year for basic tax returns and up to $900 for more comprehensive filings. We recommend speaking with a few New Jersey accountants to make sure they can help you with all of your local, state, and federal tax needs. For more advice, see our comprehensive guide on how to find an accountant.
New Jersey Department of State
If you're curious about the expenses involved in starting a New Jersey LLC, feel free to contact the New Jersey Department of State for detailed information.
New Jersey LLC Costs FAQs
How much does it cost to open a New Jersey LLC?
To form an LLC in New Jersey requires a one-time payment of $125 for the LLC formation fee.
Some LLCs may also need state or local business licenses, which vary in cost depending on your industry and location. Check local requirements for potential additional costs.
How much does an LLC in New Jersey cost per year?
All New Jersey LLCs need to pay $75 per year for the Annual Report.
If you have a Multi-Member LLC (2 or more Members), you must also pay a minimum partner tax of $150 per Member (per year).
If you hire a Registered Agent, that’ll cost about $125 per year.
Depending on your business activities, you may need additional state or local business licenses or permits, which can add to the annual costs.
Do I need to hire an attorney?
While you can hire an attorney to form an LLC, it is not a requirement.
Hiring an attorney could cost anywhere from $500 to $2,500, depending on the complexity of your LLC's structure and the attorney’s fees.
You can also follow free online courses to form your LLC yourself, with no additional cost beyond the filing fees.
Should I hire an LLC filing service?
While you can hire an LLC filing service, it is not required.
Hiring an LLC filing service can cost anywhere from $50 to a few hundred dollars, depending on the service provider.
How much does a New Jersey Foreign LLC cost?
A Foreign LLC, which is an LLC formed in another state but doing business in New Jersey, might not have a registration fee if it does not need to file a registration document with the Department of State. The cost can vary depending on specific business activities.
Check the Business.NJ.gov Out-of-State Business Registration page for more details.
What are the ongoing costs for a New Jersey LLC?
Ongoing costs for a New Jersey LLC include:
- $75 per year for the Annual Report
- $150 per Member (for Multi-Member LLCs) as a minimum partner tax
- $125 per year for a Registered Agent, if applicable
Additional costs may arise from state or local business licenses or permits, which vary based on your business type and location. Consult local regulations for any extra fees.
How much are New Jersey LLC taxes?
New Jersey LLC taxes can include federal income tax, payroll tax (if you have employees), and sales tax (sales and use tax). The total tax amount depends on your LLC's specific activities and structure.
If your New Jersey LLC elects S-Corporation taxation, there is a minimum tax of $375 per year, which increases based on the LLC’s gross receipts.
The cost of hiring an accountant to handle your LLC’s taxes can range from a few hundred dollars to about $1,200 per year.