How To Create An LLC Partnership For Your Small Business In NJ

There are various steps to create an LLC partnership for your small business in NJ. Companies in a partnership share business control and responsibility with two or more individuals. In a standard agreement, both actions and debts of either party must be accounted for by the other. As a result, many partners prefer to create a limited liability company (LLC) agreement instead. An LLC reduces the partners’ liability for business debt while continuing to let profits transfer to them. As a small business owner, there are many requirements to successfully develop an LLC partnership. Of course, consider working with a small business coach to discuss LLC expectations. Follow the steps below to create an LLC partnership for your small business in NJ.

Create A Business Name

The first step in creating a New Jersey LLC partnership is developing a business name. According to NJ law, you must choose a different name than those of other businesses on file with the Division of Revenue. This is to ensure that clients, customers and public members don’t mistake your business for another. Conduct a preliminary name search through NJ’s Business Name Database to ensure your preferred name is available. If available, using an Application for Reservation of Name, you can hold it for up to 120 days or until you file your certificate of formation. Of course, your company name has to end with either “Limited Liability Company”, “LLC” or “L.L.C.” Or, it can be abbreviated as “Ltd.” or “Co.” Surely, to create an LLC partnership, you must develop a business name.

Choose A Registered Agent

Secondly, when creating an LLC partnership, you are required to choose an NJ registered agent. Your nominated agent can be an individual or professional entity, including yourself or a member of your company. Your agent is your company’s source of communication with the state of New Jersey. They manage and transfer documents such as the New Jersey Annual Report along with the certificate of good standing for your business. More so, they collect your tax forms and receive official documents from the state. Of course, they track statements from recurring billing, banks and transfers. Additionally, they receive, or are served, the paperwork if your business is involved in a lawsuit. Certainly, choose a registered agent when creating an NJ LLC partnership.

File Articles Of Organization

Next, you need to file the Articles of Organization to create an LLC partnership for your small business in New Jersey. For a domestic LLC, you must pay $125 and complete this form by mail, online or in person. Provide your business’s LLC name and your principal address. Describe your business type and management type, such as managed by a member or a manager. Additionally, include the names, addresses and signatures of all business members including your registered agent. Of course, you need to submit a completed business registration application with duplicated forms. Certainly, when creating an NJ LLC partnership, include all this information when filing the Articles of Organization.

Draw Up An Operating Agreement

Of course, when developing an LLC partnership, draw up an NJ LLC operating agreement. This agreement, which is highly recommended, should be drafted around the same time that you file your Articles of Organization. While similar to the Articles of Organization, an LLC operating agreement outlines all company affairs. In fact, it is similar to an investor contract for small businesses. For example, it documents members’ role within your company. All members are listed by name along with their explicit duties. Additionally, this agreement should manage procedural operations such as the foundation of profit distribution and how potential mergers will be handled. More so, you can include your plan if your business fails or dissolves. Definitely draw up an NJ LLC operating agreement when developing an LLC partnership.

Obtain An EIN

Finally, obtain an employer identification number (EIN) when creating an LLC partnership for your small business in New Jersey. The IRS requires all partnerships to receive an EIN for tax reporting purposes. You can apply for an EIN online with your social security number (SSN) or individual taxpayer identification number (ITIN). Usually, you will receive a PDF of your EIN confirmation letter after completing the form. On the other hand, you may receive an error message. If this occurs, you will have to submit a Form SS-4 to the IRS through mail or fax. Of course, depending on your submission option, it could take as little as 4 business days or up to 8 weeks to receive a confirmation letter. Certainly, obtain an EIN when creating a LLC partnership.

There are several steps to follow when creating an LLC partnership for your small NJ business. First, develop a business name that is unique and different from other names filed with the Division of Revenue. Secondly, choose a registered agent to be the liaison between your business and the state of New Jersey. Next, file the Articles of Organization to provide an overview of your business, complete with all required information. Of course, draw up an NJ LLC Operating Agreement to describe company affairs, determine members roles in the company and to set up plans in cause of downfall or failure. Finally, obtain an EIN for tax reporting purposes through an online application or by emailing or faxing a Form SS-4. Follow these steps to create an LLC partnership for your small business in New Jersey.