Formation of an LLC in New Jersey

by Anna Assad

Forming a limited liability company, or LLC, in New Jersey involves filing the required forms with the New Jersey Division of Revenue. An LLC is a company type that has aspects of both a corporation and partnership. Your personal assets are shielded from actions by the LLC's creditors if you are a member, or owner, of the company.

File an LLC application

Fit your business needs with the right LLC package

http://www.legalzoom.com/limited-liability-company

Name Selection and Purpose

Select a name for your New Jersey LLC. The name cannot be already in use by another business or easily confused with a different entity, and you can check for name availability thought the New Jersey Division of Revenue; your proposed name is automatically checked if you form your LLC online. New Jersey requires an LLC to use the words "limited liability company" or "LLC" -- with or without periods -- in the company name. The purpose of your LLC's formation must be set forth on the state filing, such as "to conduct real estate transactions."

Registered Agent Designation

A registered agent is a person or business designated to accept legal notices on behalf of your LLC. The name and address of your registered agent must be included on the formation paperwork, and the street address has to be in New Jersey. A business must be in good standing with the state to act as a registered agent.

Certificate of Formation

The Certificate of Formation is a listing of information about your LLC, and must be filed with the New Jersey Division of Revenue. The name, purpose and duration -- which can be perpetual or for a specific length of time -- are set forth on the certificate. The name and address of your registered agent and the address of your company's principal location must be entered on the document. The fee for filing the certificate is $125 as of 2010.

Tax Registration

All businesses in New Jersey must register with the New Jersey Division of Revenue for tax purposes using Form NJ-REG. The filing ensures your business is correctly registered with the state tax department by your EIN, or federal employer identification number, so you receive all necessary tax notices and statements. Your EIN is used to identify your LLC to the IRS and New Jersey. An EIN can be obtained by applying to the IRS or through the New Jersey Division of Revenue. Once you have submitted your form, you may apply for a Business Registration Certificate through the New Jersey Division of Revenue. The certificate is required if you are going to engage in business with any public agency in the state.

Operating Agreement

New Jersey law does not require you to draft an operating agreement for your LLC. However, preparing the agreement, which specifies the internal rules and regulations for your business, helps avoid legal problems with members in the future. You can detail the rules for distributions to and admission of members, as well as any other provisions that are necessary for your business and do not violate state laws.