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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$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

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

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.

As with any legal process, forming and maintaining an LLC in New Jersey requires a certain level of investment. There are various fees involved, including state and federal taxes, business licenses and bank account fees. In addition to the initial registration fees, an ongoing schedule of business permit fees may be required. You should compare the fees of various attorneys and find one who suits your budget and business goals. In the next section, we will explore the various costs involved in maintaining an LLC in New Jersey.

The fees associated with establishing an LLC in New Jersey may vary significantly depending on the type of business. For example, if you are setting up a new business, an accountant can cost as little as a few hundred dollars a year. However, if you need to file annual reports, you may need to spend a few hundred or even a thousand dollars per year. In addition, LLCs must file annual reports to confirm ownership and update contact information. These annual reports are also a cost associated with the LLC registration process. These fees can range from a few hundred dollars to hundreds of dollars, depending on the state.

Filing the paperwork required to form an LLC in New Jersey includes a $50 filing fee. Once you’ve paid the fee, you’ll need to wait two weeks before the name is available to the public. It will take about 90 days for the state to approve or reject your application. To maintain an LLC in New Jersey, you must file the necessary documents with the state’s Division of Revenue.

Besides the registration fees, you will need to pay various taxes. Some of these taxes are paid to the federal government while others are paid to the state. You must also pay the state income tax on your LLC’s earnings. However, this tax is paid by the business, not the individuals. Nevertheless, you should pay your state income taxes in New Jersey. If you are running a business in New Jersey, you should form an LLC to reduce your taxes.

Forming an LLC in New Jersey is relatively inexpensive in terms of state fees. Depending on the business, you may also have to pay for other legal fees such as taxes and permits. The cost of forming an LLC in New Jersey will vary. You can choose between hiring an attorney to create the documents or forming your business with an online service. The costs for the required documents are as follows:

An EIN is similar to a business’ social security number. You need it to open a bank account, hire employees, and manage federal taxes. Furthermore, you will need it if you plan on hiring any employees in New Jersey. You can download the EIN form from the IRS’ website. Moreover, you must obtain a Federal tax identification number. Lastly, you should obtain an EIN.

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.

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.

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