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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.
On this page, you’ll learn about the following:
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 | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
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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.
| States | Filing Fee | Annual/Biennial Fee | Sales Tax |
| New Jersey | $125 | $75 | 6.625% |
| Pennsylvania | $125 | Seek Regional Help | 6.0% |
| Delaware | $90 | $250 | 4% |
| New York | $210 | $325 | 6% |
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
- New Jersey Name Reservation: $50 for online fillings or by mail
- Doing Business As (DBA): $25 for online filling or if filing by mail
- Certified Document Copies: $25 per document.
- Certified of Good Standing: $25
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of New Jersey LLC: $120
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
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.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
How Much Does It Cost to Maintain an LLC in New Jersey
To maintain an LLC in New Jersey you will need to pay an annual fee of $75 along with state income tax at 6.625%, state sales tax and federal taxes.
Maintaining an LLC in New Jersey involves various costs that business owners should be aware of to avoid any surprises down the road. There are several expenses associated with operating an LLC in the Garden State, including formation fees, annual report filing fees, registered agent fees, and potential penalties for late filings.
One of the initial costs of starting an LLC in New Jersey is the formation fee, which varies depending on the type of business and the method of filing. Entrepreneurs must pay a fee to file the necessary formation documents with the New Jersey Division of Revenue. Additionally, hiring a registered agent is another cost that should be factored in, as New Jersey law requires LLCs to have a registered agent to accept legal documents on behalf of the business.
Once the LLC is established, business owners in New Jersey must also consider annual report filing fees. Each year, LLCs are required to file an annual report with the state to keep their business in good standing. Failure to file these reports on time can result in hefty fines and jeopardize the LLC’s legal status in New Jersey.
In addition to the aforementioned expenses, there are other ongoing costs associated with maintaining an LLC in New Jersey. These may include business insurance, licensing and permit fees, and professional fees such as attorney or accountant services. It is important for business owners to budget for these costs to ensure the smooth operation of their LLC and avoid any financial surprises.
While the cost of maintaining an LLC in New Jersey can add up, it is important to weigh these expenses against the benefits of having limited liability protection and the flexibility to structure the business as desired. Furthermore, the peace of mind that comes with knowing personal assets are shielded from business liabilities may outweigh the financial investment required to maintain an LLC.
Ultimately, the decision to form and maintain an LLC in New Jersey should be made after careful consideration of the costs involved. While it may require some upfront investment and ongoing expenses, the benefits of an LLC in terms of liability protection and tax advantages can be well worth the financial commitment. By being aware of the costs associated with maintaining an LLC in New Jersey, business owners can ensure they are properly prepared to manage these expenses and keep their business running smoothly.
In Conclusion
The cost of New Jersey is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.
Hi how are you sir,
i need help creating my certificate of formation for my LLC . can you please help me?