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
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.
First and foremost, forming an LLC in New Jersey requires filing certain legal documents and paying associated fees. The process typically involves filling out and submitting Articles of Organization to the New Jersey Division of Revenue. As with many bureaucratic processes, there is a fee for this service, which is imperative to set up a proper legal structure for the company.
Furthermore, business owners should take into account the costs associated with obtaining any necessary licenses and permits to operate within the state. Depending on the industry, this could involve obtaining professional certifications, specific operational licenses, or adhering to zoning and permits regulations. These expenses can vary significantly and must be factored into the overall budget.
Once an LLC is successfully formed, ongoing operational costs enter the picture. One of the most important considerations is the annual requirement to file a report with the State of New Jersey. Known as the Annual Report, it provides updated information about the business such as the address, key individuals, and business activities. While the report itself may seem like a minor detail, it requires payment of an associated fee, which is typically based on the business’s annual revenue or number of members.
Apart from the Annual Report, New Jersey also imposes an annual tax known as the Business Entity Tax on LLCs. The tax amount is determined by the business’s total income for LLCs that generate over a certain threshold (and not by the company’s profit). Although the Business Entity Tax can vary greatly depending on the business’s financial situation, it is crucial not to overlook this expense when planning the company’s financial expenditures.
Moreover, legal compliance and professional services play an important role in the maintenance cost of an LLC in New Jersey. Engaging the services of a qualified attorney or an accountant helps ensure that the company operates in accordance with the law and remains in good legal standing. While it is tempting to pinch pennies on professional services, neglecting compliance can lead to penalties or other legal issues down the line. Thus, these essential fees should be considered as an integral part of maintaining an LLC and ensuring a smooth sailing operation.
In conclusion, starting and maintaining an LLC in New Jersey entails a series of costs that, when combined, form the total expense associated with managing and operating a business. By being aware of these potential expenses, business owners can properly evaluate their financial expectations and allocate resources accordingly. While the maintenance cost may seem daunting at first, it is an investment that underpins the long-term sustainability and proper functioning of an LLC in the great state of New Jersey.
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.
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?