New Jersey LLC Costs—Summary

Expense	Price
LLC Filing Fee (Certificate of Formation)	$125
Registered Agent Services	$200-$400
Reserve Business Name (optional)	$50
Filing a DBA (optional)	$50
Operating Agreement (optional)	$0-$1,000
Corporate Tax	$500 and up
Annual Report	$75

You’ve come up with a great idea for a business and are ready to start. You know there are fees, but just how much will you have to put out to get the business up and running? Your first step is to determine startup costs, long-term profitability, and, if needed, funding options.

While it might seem daunting, it’s not as difficult or expensive as you might think, especially if you use an LLC formation service like Tailor Brands. While starting a New Jersey LLC is relatively affordable, you should know the additional fees the state charges, including the cost of taxes and permits.

General Steps and Costs When Forming a New Jersey LLC

To start a limited liability company in New Jersey:

• Ensure your business name is available
• Navigate to the Division of Revenue and Enterprise Services LLC formation page
• Obtain a Federal Employer Identification Number from a service such as Tailor Brands or by applying yourself
• File a Certificate of Formation / Authorization
• Pay the filing fee of $125
• File the certificate
• File the tax/employer registration form

Taking the process one step at a time is easier than trying to absorb everything at once. Using a service to do everything for you simplifies it even more, plus allows you to have the peace of mind that it’s done correctly and that all mandatory fees are paid.

Naming your New Jersey LLC

Before you can register a business in New Jersey, you must check to see if the name is available. The name search is free. You have the option of reserving a business name that is available if you are not ready to file the Certificate of Formation.

You can also file a ‘doing business as’ (DBA)—referred to as an “alternate name” in New Jersey, if you prefer to be a sole proprietor or a general partnership. Those two entities do not need to file with the Division of Revenue and Enterprise Services. However, if you wish to use a name other than your own name for the business name, you will need to register the DBA name.

You can file online, by fax, in person, or by courier service. The filing fee is $50.

Be sure to register the alternate name before you use it, or you could incur an additional fee of $50 per year the name was in use prior to registration.

Filing articles of organization

New Jersey refers to articles of organization as the “Certificate of Formation.” The fee for filing the certificate of formation is $125.

Some businesses might need to file a “Certificate of Authority” if:

• The business is a foreign limited liability company or other entity opening a physical location or office in New Jersey
• The foreign business is hiring employees who live in New Jersey
• The foreign entity is starting a new job or contract in New Jersey
• A vendor or bank might require a business to file a Certificate of Authority
• A licensing agency requires the Certificate of Authority

The cost for filing a Certificate of Authority is $125

Appointing a registered agent

Part of creating a new LLC is appointing a registered agent. Business owners can appoint themselves, a friend or a relative. It is free to appoint a registered agent as part of filing the Certificate of Formation.

You can also use a registered agent service such as Tailor Brands. Our services provide you with privacy and flexibility and ensure that you are compliant with state regulations. Registered agent services cost from $199 to $400 per year.

Creating an operating agreement

An operating agreement for a New Jersey LLC is optional. However, it is recommended that you create the operating agreement. This document serves as the rules for the limited liability company’s members. It includes voting rights, division of profits, how to fire or hire a member, and more.

The cost of an operating agreement depends on how you do it. If you are able to create your own operating agreement, the only cost is your time. It could range up to $1,000 depending on whether you retain an attorney or use our operating agreement service.

Other Annual and Additional New Jersey LLC Costs

Creating a New Jersey limited liability company is not the end of costs. The LLC will have additional costs, such as:

New Jersey corporation tax

Businesses must pay a corporation tax on adjusted net income or the portion of the business income generated in New Jersey. The state charges a minimum tax based on gross receipts.

New Jersey taxes income at:

• 9 percent on adjusted net income or the portion earned in New Jersey
• If a business makes $100,000 or less, the rate is 7.5 percent
• If a business makes $50,000 or less, the rate is 6.5 percent

The minimum tax is:

• $500 for businesses making less than $100,000
• $750 for businesses making at least $100,000 but less than $250,000
• $1,000 for businesses making at least $250,0900 but less than $500,000
• $1,500 for businesses making at least $500,000 but less than $1,000,000
• List $2,000 for businesses making $1,000,000 or more

Businesses must file the CBT-100 tax return online using the same method of accounting that was used to complete the business’s federal tax return.

The due date for New Jersey’s corporation tax is the 15^th day of the fourth month after the ending month of the accounting period. For example, if your business follows a fiscal year that ends in June, the taxes are due on or before October 15.

Business licenses and permits

New Jersey businesses have additional taxes to pay. The state levies some taxes on all businesses and other taxes on certain industries. There may be additional business licenses in New Jersey, check your local county to understand if your LLC requires them. 

Some of the common taxes a business might have to pay include:

• 911 System and emergency response fee
• Admissions surcharge
• Cape May County Tourism Sales Tax and Tourism Assessment
• Combined Atlantic City Luxury / State sales tax
• Cosmetic medical procedures gross receipts tax
• Domestic security fee
• Payroll taxes
• Fur clothing retail gross receipts and use tax
• Hotel/motel state occupancy fee and municipal occupancy tax
• Luxury and fuel-inefficient vehicle surcharge
• Meadowlands regional hotel use assessment
• Motor fuels tax
• Motor vehicle tire fee
• Nursing home assessment
• Partnerships
• Pass-through business alternative income tax
• Prearranged ride surcharge
• Recycling tax
• Sales and use tax energy
• Sales and use tax
• Salem sales and use tax
• Millville District sports and entertainment facility tax
• Tobacco and vapor products tax
• Urban enterprise zone tax

Annual report

All businesses registered with the Division of Revenue and Enterprise Services must file an annual report. This report notifies the state of any changes to your business. The annual filing fee for filing the report is $75.

If a business does not file the annual report, it runs the possibility of being administratively dissolved by the state. Once dissolved, you must pay penalties in addition to the filing fee to reinstate the business.

What Expenses You Can Write Off

After all this talk about fees, there is good news. You can write off several of the fees, including:

• The cost of completing the Certificate of Formation (Articles of Organization)
• Filing fees
• Alternate name fees
• The cost of creating an operating agreement
• Registered agent costs
• Attorneys’ fees

Writing off these expenses decreases the amount of your net income, which then decreases the amount of taxes you pay. If you are unsure how to handle business taxes or which entity to choose, consult with a business law attorney.

New Jersey does not charge a fee for the vendor’s license. The license does not expire; thus, it cannot be renewed.

New Jersey LLCs – State Filing Fees

Fees are taken from the New Jersey Department of Treasury’s Division of Revenue and Enterprise Services site.

Fee type	Fee cost
All amendments	$100.00
Annual Report	$75.00
Certificate of Cancellation:•Domestic•Foreign LLCs	$100.00 $125.00
Certificate of Correction (Used to correct a deficiency in a filed certificate and not to amend a filed certificate)	$100.00
Certificate of formation	$125.00
Certificate of registration for a foreign LLC	$125.00
Change of Registered Office or Agent or Both (Also, includes resignation of agent without successor)	$25.00
Expedited service fee (applies only to over-the-counter transactions):•per filing•Same Day service fee (FAX filing only)•2 hour service fee, per document•1 hour service fee, per document	$25.00 $50.00 $500.00 $1000.00
LLC alternate name registration	$50.00
LLC name reservation	$50.00
Reinstatement of charter	$75.00
Renewal of LLC alternate name	$50.00
Renewal of reserved LLC name	$50.00
Resignation of registered agent with appointment of successor:•Certificate•Affidavit for each affected LLC	$25.00 $10.00 $10.00
Service of Process	$75.00
Transfer of reserved LLC name	$50.00

Conclusion

While creating a limited liability company might seem complicated and expensive, it is not as bad as it looks upon your first review. New Jersey provides plenty of help while going through the online application process, and many of the fees are deductible from your taxes.

If you are still unsure about creating a limited liability company yourself, Tailor Brands can set up a limited liability company, provide registered agent services, and much more.

We also provide annual report services, website services, logo creation, a business email, domain services, and more to make your business look professional.

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