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.

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  • Operating Agreement Included

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.

If you’re starting a business in New Jersey, you may be wondering how much it will cost to maintain an LLC in the state. Thankfully, the state has created a helpful guide to help you get started. In addition, the Small Business Development Center offers training, counseling, and networking opportunities. Despite these advantages, LLC maintenance in New Jersey can be costly. Learn how to keep your costs to a minimum and save yourself time and money.

The first step to maintaining an LLC is to hire a registered agent. This person will accept legal mail on behalf of the business. This person can be an individual or an organization, but the registered agent should be based in New Jersey and willing to list their address publicly. Filing annual reports is another requirement in New Jersey. These reports should confirm who owns the business and update their contact information. There is a small fee of $78 to file annual reports, but there is no late filing fee.

Another cost to consider is taxes. There are several taxes you may have to pay if you are operating an LLC in New Jersey. The state requires businesses to pay 6.625% state income tax and sales tax, and there are fees for an accountant. You must also pay federal taxes if you’re operating a business in New Jersey.

As an LLC owner, it is essential to maintain a comprehensive operating agreement to protect the rights of all owners and avoid future disputes. An operating agreement can also help you clarify the way your business runs and outlines the rights of key stakeholders. If you’re unsure about how to do this, visit the IRS website to apply for a free EIN.

When forming a new LLC in New Jersey, you’ll also need to choose a name for your business. You can search for available names in the state’s Business Name Database. To reserve a name, you can pay $50. Another important document to maintain an LLC in New Jersey is the NJ Post Registration Compliance (NJPRC). This document details the company’s legal and financial liabilities, as well as the applicable taxes. This document must be filed within 60 days of forming your business and ten days before your first sale.

You may also need to pay a registered agent to accept official legal documents and correspondence. An agent will also notify your business about important government notices and keep you up to date on deadlines. An experienced registered agent can cost anywhere from $39 to $300 per year. You should also register your LLC with the Division of Revenue within 60 days of its formation.

In New Jersey, LLCs are required to hire a registered agent, or “registered agent” to serve as their point of contact with the state. The registered agent will be a liaison between the company and the state and will accept important legal documents on your behalf.

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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