How Much Does an LLC Cost in New Jersey

From the $125 filing fee to a range of other expenses, read on to ensure you're financially prepared before launching an LLC in the Garden State.

You might have been told you'll only need $125 to start an LLC in New Jersey. However, that's just the beginning of a long list of expenses you should plan for.

Yearly costs include $75 for the annual report fee and $150 for the minimum partnership fee (if applicable). Recurring expenses may consist of registered agent fees, website domain fees, and insurance premiums.

Find out how much you'll have to fork over to get an LLC up and running in New Jersey.

Business Formation Service - $39 + State Fees

• Form Your LLC, Corporation, or Nonprofit Today
• A Fully-Formed Business
• Registered Agent Service
• Business Address
• Mail Forwarding
• Privacy by Default

Get Discount

Read Review

New Jersey Domestic LLC Formation Fee

Cost: $125^[1]

In New Jersey, the Certificate of Formation filing fee is paid to the New Jersey Division of Revenue and Enterprise Services. Once the application is approved, your LLC will be recognized as legally separate from you.

A Certificate of Formation includes essential details about the LLC. They are: LLC's name, address, purpose, duration, and registered agent information.

You can expedite the process if you submit your New Jersey LLC Certificate of Formation in person or via fax. Rates vary based on the speed of processing:

• $25 - Within 8.5 business hours
  
• $50 - Same-day service
  
• $500 - Within 2 hours
  
• $1,000 - Within 1 hour

New Jersey Foreign LLC Formation Fee

Cost: $125

If your LLC is already established in a different state and you want to expand your business to New Jersey, it must be registered as a foreign LLC. The LLC formation fee is also $125.

Foreign LLCs offering licensed professional services in New Jersey must first get state licenses and permits. Every member of your Professional Limited Liability Company (PLLC) has to maintain an active professional license in good standing.

New Jersey LLC Annual Report Fee

Cost: $75^[1]

New Jersey LLCs are required to file an annual report to stay in good standing with the state. This keeps your LLC's basic information current, including your registered agent, address, and members' names.

The Annual Report is due on the last day of the month of your LLC's anniversary.^[2] If your LLC was formed on February 18, your LLC's annual report is due every year by February 28.

New Jersey LLC Minimum Partnership Fee

Cost: $150^[4]

If your New Jersey LLC has 2 or more members, you need to pay the minimum partnership fee. This costs $150 per member. This fee is used to help the state fund various services and infrastructure that benefit businesses and residents.

LLCs are not subject to the same level of taxation as corporations. The minimum partnership fee ensures that LLCs classified as partnerships still contribute to the state's budget.

New Jersey Business Permits and Licenses

Cost: $0 - $500+

New Jersey has no general statewide license. However, local licenses are often required. Newark has a $250 license fee for retail shops.^[5] In Atlantic City, there's a $200 license fee for all businesses operating inside city limits.

Depending on your LLC's industry and location, you might need to get additional business licenses and permits. Check the New Jersey business site to check what registrations, licenses, and permits your LLC needs.

New Jersey Business Taxes

Cost: 1.4% - 10.75%

By default, LLCs in New Jersey are treated as pass-through entities for tax purposes. This means profits and losses are passed directly to members and reported on their personal tax returns.

In addition to state taxes, some New Jersey cities and counties levy their own business taxes. For example, Jersey City and Newark impose a 1% payroll tax.^[6][7] The local government can also apply special taxes in certain areas, like the 9% Atlantic City Luxury Tax on specific beverages, entertainment, and room rentals.^[8]

Don't forget to submit the Employer Registration Form to the Division of Revenue and Enterprise Services within 60 days of forming your LLC. It's a necessary step so your LLC can get a 12-digit state tax ID. Even if your LLC isn't required to pay state taxes, you still need to register with the New Jersey Revenue Department.

Optional Fees for LLCs in New Jersey

While the LLC fees in New Jersey below are optional, you may need to pay for some of them depending on your business needs. For example, obtaining a Certificate of Good Standing is often necessary when opening a business bank account.

As you plan your budget for your new NJ LLC, remember to account for these potential additional expenses:

New Jersey LLC Registered Agent Fee

Cost: up to $400

A registered agent's main responsibility is to receive important legal documents on behalf of your LLC. You or a trusted person can be a registered agent as long as the following requirements are met:

• At least 18 years of age.
  
• Have a physical address in New Jersey.
  
• Available to receive legal documents during regular business hours.

Keep in mind that you will need to include the full name and address of your LLC's registered agent when you file the Certificate of Formation. It's a good idea to hire a registered agent service if you want to keep your address off public records.

Registered Agent Service - $125/year

• Business address included
• Free mail forwarding
• Lifetime guide service with business experts
• Never sell your data. Ever.

Find Out More

Registered Agent - $249/Year

• Includes unlimited cloud storage for your business documents
• Includes a Compliance Calendar (valued at $69) for critical tax and annual report deadlines
• Renews automatically each year. Renewal rate is subject to change.
• Cancel your service plan online or by calling (877) 808-8977

Learn More

Registered Agent - $199/Year

• Get a registered agent for LLCs and corporations
• Available in 50 states
• Get notifications via mail of important legal notices
• Find important documents scanned and uploaded to your dashboard

Learn More

New Jersey LLC Operating Agreement Fee

Cost: up to $1,000

An operating agreement is a legal document that details the operating procedures of the LLC. It also defines the roles and responsibilities of the members or managers. Its purpose is to help solve any business disputes that may arise later on.

The costs associated with the operating agreement come in the drafting of the document. You can create an operating agreement for free by using templates online. Alternatively, it could cost upwards of $1,000 if you hire an attorney.

New Jersey Employer Identification Number

Cost: FREE

An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS). This number is used to identify your LLC for tax-related purposes.

Single-member LLCs in New Jersey are not required to have an EIN. However, you might still need it if you want to hire employees or open a business bank account.

New Jersey LLC Name Reservation Fee

Cost: $50

Before registering a business in New Jersey, you need to verify if your chosen business name is available. This process is free of charge. If your desired business name is not yet taken, you can go ahead and write it in your Certificate of Formation.

If you're not ready to file the Certificate of Formation but want to secure your desired name, you can pay for a name reservation. This reservation holds this name for 120 days.

New Jersey LLC Alternate Name Fee

Cost: $50

You can use an alternate name instead of your LLC's legal name when conducting business. This is ideal if you want to use a brand name more suitable for your target market.

An alternate name for businesses in New Jersey is valid for up to 5 years. You will need to renew it for $50 to retain your LLC's trade name.

New Jersey LLC Certificate of Correction Fee

Cost: $100

After your New Jersey LLC application is approved, your next focus should be on maintaining its good standing over the long term.

Get a copy of the approved Articles of Organization and review all the details carefully. If there are errors, like a misspelled business name or incorrect address, rectify them as soon as possible by filing a Certificate of Correction.

New Jersey LLC Certificate of Amendment Fee

Cost: $100

Your New Jersey LLC's Articles of Organization contain specific details about your business. Should these details change, you must submit a Certificate of Amendment to the New Jersey Department of the Treasury's Division of Revenue and Enterprise Services.

File a Certificate of Amendment if you:

• Add, remove, or change an LLC member or manager.
  
• Update your LLC's business address.
  
• Modify your LLC's stated business activities.

New Jersey LLC Certificate of Change Fee

Cost: $25

You must file a Certificate of Change if you want to update your LLC's registered agent name or address. But if you want to save on cost, you can submit the updated details when you file your annual report.

New Jersey LLC Standing Certificate Fee

Cost: $50 or $100

A New Jersey Standing Certificate lets others know that your LLC complies with state law. You might need it if you're applying for a loan or are expanding your business to another state.

There are two types you can obtain from the state:

• $50 for a short-form LLC Standing Certificate
  
• $100 for a long-form LLC Standing Certificate

The short form standing certificate is a brief document that confirms the existence of your LLC and its status concerning state requirements.

The long form standing certificate is more detailed. It might include the company's complete filing history, amendments, and other legal and operational information.

New Jersey LLC Certified Document Copy Fee

Cost: $25

Certified Copies of New Jersey business documents obtained from the state validate that the documents are true and correct.

You often need these certified copies of your LLC's documents to open new bank accounts, apply for loans, or demonstrate to investors that your LLC is legitimate and properly managed.

New Jersey Business Website Domain Fee

Cost: $20 - $30

A website domain provides a dedicated online space for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.

Even if you're planning to wait to build a business website, it's a good idea to buy the domain name at least. This prevents others from using your LLC's name as a web address.

New Jersey Business Insurance Premium

Cost: varies

If your LLC in New Jersey has at least one employee, state law mandates you get workers' compensation insurance.^[11] Failure to have this insurance can lead to fines or your business being shut down.

The cost of this insurance depends on factors like the number of employees, the risk level of your industry, and your past insurance claims. For instance, a large-scale industrial manufacturer typically incurs higher insurance premiums compared to a smaller graphic design studio.

Bottom Line

New Jersey's diverse economy and proximity to New York City make it a prime location for new businesses. If you have a brilliant business idea and are eager to begin, you're doing the right thing by understanding the actual costs before moving forward.

In summary, the Certificate of Formation filing fee for an LLC in New Jersey costs $125, and the annual report is $75. Multi-member LLCs will also need to pay the $150 minimum partnership fee per member.

The cost will increase depending on the additional services, documents, and licenses your LLC needs. Ultimately, setting aside an extra budget for unexpected costs is never a bad idea.

References