LLC Cost in New Jersey – How Much to Pay for an LLC

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Perhaps you are hoping to form an LLC in NJ. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in New Jersey.

New Jersey LLC Cost of Filing

Here are the costs involved in forming an LLC in New Jersey.

Cost of Filing Formation Certificates

The New Jersey Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the New Jersey Division of Revenue

New Jersey Domestic LLC

  • Online Filing costs $128.50. 
  • Annual Report filing costs $75
  • Name Reservation fee costs $50
  • By Mail: Fill out the application form, and send it to NJ Division of Revenue, PO Box 308, Trenton, NJ 08646. Costs $125.

New Jersey Foreign LLC

  • Online Filing costs $128.50.
  • Annual Report filing costs $75
  • Name Reservation fee costs $50
  • By Mail: Fill out the application form, and send it to NJ Division of Revenue, PO Box 308, Trenton, NJ 08646. Costs $125.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

New Jersey LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in New Jersey, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

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Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the New Jersey Department of Revenue for regulatory boards or agencies requiring licensing. 

New Jersey Business Taxes to be Paid by LLCs

For any business entity, forming an LLC (Limited Liability Company) is definitely a lucrative option as it reduces the costs spent on various taxes. While creating an LLC, You will be paying taxes to the federal government as well as the New Jersey Government.

In New Jersey, State taxes are paid to the New Jersey Division of Taxes. The types of state taxes that an LLC has to pay in New Jersey are:

State Sales Tax

State sales tax is levied upon all the money you draw from your LLC, i.e. your earnings. You are taxed while filing for your personal tax return. The state income tax rate in New Jersey is 6.625%.

State Income Tax

The State Income tax in the State of New Jersey is not fixed. It varies depending upon the income drawn, the region in which you operate, etc. Your LLC can collect the state income tax at the time of purchase & can then pay it to the authorities.

Federal Self-Employment Tax 

Every member of the LLC, including the manager, has to pay the Federal Self-Employment Tax. The Federal Self-Employment Tax rate in New Jersey is 15.3%

Federal  Income Tax 

One more type of Federal Tax that needs to be paid by an LLC in New Jersey is the federal Income tax. This tax is also applicable to all the earnings you make out of your LLC. 

The Federal Income Tax Rate depends upon your earnings, the Industry you are dealing with, your LLC tax bracket, deductions, etc. 

Employee & Employer Taxes 

If you have employees on the payroll, there are different taxes applicable for each employee. These tax implications are different from all the other types mentioned above. For Example, All employees of an LLC have to collect and withhold the Payroll tax at the time of receiving the salary.

Irrespective of whether you withhold the Federal Tax or not, each employee has you file an individual Tax return.

Cost Comparison between states

New Jersey is surrounded by many states, namely, Pennsylvania, Delaware, and New York.  Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.

StatesFiling FeeAnnual/Biennial FeeSales Tax
New Jersey$125$756.625%
Pennsylvania$125Seek Regional Help6.0%
Delaware$90$2504%
New York$210$3256%

You should consult with an accounting professional to know more about all the other taxes or duties levied on the LLCs in The State of New Jersey.

Other Costs

How Much Does It Cost to Maintain an LLC in New Jersey

Once you’ve formed your LLC, you will have to follow certain rules and regulations that are set by the state in order to remain in good standing. You must also file an annual report, also known as a periodic report, which is important for your company’s good standing and liability protection. This process can be time-consuming and expensive, so it’s best to let a professional do the work for you.

The first step in forming your LLC is registering it with the Division of Revenue. The filing fee is $125. If you file online, you’ll also need to pay a $3.50 service fee. You can choose expedited processing, which means you can get your paperwork in two hours or less. In-person filing costs are much higher. If you’re concerned about how much money it will cost to operate an LLC, you can hire an attorney to prepare your operating agreement.

After forming your LLC, you need to file all the paperwork with the Division of Revenue. This fee is $125 and is paid online. However, there’s an additional $50 filing fee if you file in person. Generally, filing fees are low compared to other states. In addition, you’ll find that the fees for forming an LLC in New Jersey are relatively affordable if you start your business with a professional.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

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