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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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 are considering starting a business in New Jersey, you will need to know how much it costs to maintain an LLC. There are numerous fees you will need to pay, so it’s important to be aware of them before you begin. Some expenses are common for all types of LLCs, while others are only required for certain types of businesses. It is possible to save money on some of the fees.

The costs to maintain an LLC in New Jersey will vary depending on what type of business you are operating. For instance, some businesses will need to pay taxes on their profits. Others will need to get an EIN, which is similar to a social security number for a business. Many banks won’t accept business bank accounts without an EIN.

Another expense for maintaining an LLC is filing a Certificate of Good Standing. This is a report you will have to file with the Division of Revenue & Enterprise Services each year. You will also need to make quarterly reports for employment taxes and sales tax. In addition, you will have to submit a “Partner Tax” if you have more than one member. This cost will vary, but if you are unsure of your needs, you can contact the Division of Revenue for more information.

Other expenses include paying a registered agent, which is necessary for all New Jersey LLCs. A registered agent accepts correspondence on behalf of the business and is the main point of contact with the state. They also receive government documents on the company’s behalf. An individual or corporation can serve as a registered agent, but most companies that provide registered agent services charge around $39 to $300 a year.

One of the most common fees to maintain an LLC in New Jersey is the yearly report. This report is due on the last day of the month in which the anniversary date falls. Your yearly report will have to include information about your business. Keeping up with this report is important, as failing to do so can result in severe penalties.

It’s best to consult a qualified accountant to keep your business on top of taxes. However, you can also find formation services to handle most of the paperwork. These services have a good grasp of state laws and procedures, which makes them a good choice for new business owners.

Another expense to consider is reserving your business name. You can do this by filing Form UNRR-1. After submitting this form, you can hold your business name for 120 days. Having a reserved business name can help you save time and money down the road.

Lastly, you may want to purchase a domain name for your business. You can do this as cheaply as $2.99 per year through NameCheap. Purchasing your own URL can protect your company’s name from becoming acquired by another business. Depending on your business, you may need to have an occupational license, which you can apply for through the NJ Division of Consumer Affairs.

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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