LLCs, or limited liability companies, are a common form of business that offer limited liability, general partnership for tax purposes and management control. If you are an entrepreneur looking to start a business, you might be drawn towards the advantages they offer in terms of ownership and taxation flexibility. However, registering for an LLC is a multi-step process that varies greatly by state. If you are looking to start your business in New Jersey, here are the steps you must take to form an LLC.
Choose An Available Name
Picking a name for your business is an important beginning step in how to form an LLC. First, you need to make sure the words “limited liability company” or LLC are included in the business name. This is a requirement by New Jersey law. Next, you need to make sure your chosen name is distinguishable from existing names registered with the NJ Division of Revenue and Enterprise Services. The application can be conveniently done online, but beware that there is a $50 filing fee for doing so. Once your name is decided on and your application is filed, you can move on to the next step in forming an LLC.
Assign An Agent
New Jersey law requires that you appoint a registered agent to file all of your paperwork that is on office paper. They are responsible for accepting legal documents and notifying all members of the LLC. When looking for an agent, you must ensure that they have a physical address in New Jersey and are registered to conduct business there. It is as simple as that. Assign an agent, and continue on towards the following step in this process.
File Certificates Of Organization
With your agent on the books, you can now file for a certificate of organization. This is a crucial step, as this is the document that will certify your business as an LLC. Simply access the document through njportal.com and file it online. You will need your LLC name and address, those of your agent and all others involved in your business. Once this is complete, all you have to do is pay a $125 filing fee. With the fee paid and your LLC officially registered, you can now begin finalizing this process.
Prepare An Operating Agreement
An operating agreement lays out specifics about the purposes of your business. It details your activities, describes the roles each LLC member has and specifies the relations between them. While an operating agreement is technically not required by NJ law, it is extremely advisable that you create your own. If you decline to do so, you will be subjected by default to New Jersey’s LLC statue. You might find that this is not preferable for your business, so make sure you design an adequate operating agreement to finish forming your LLC.
Limited liability companies are a great option for entrepreneurs looking to reap all the advantages they provide. Applying for one however, is a multi-step process that varies greatly by state. You need to be aware of all the necessary applications and the fees associated with filing them. As long as you follow the steps listed in this post, you now know how to form an LLC in the state of New Jersey.
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