To start running your business in New Jersey you need to file a New Jersey certificate of formation with the state. The certificate helps you officially register an LLC in the state of New Jersey. We are here to guide and inform you about how you can start running your business legally in the state. Our guide will help you explain the vital details of the certificate of formation.
What is the New Jersey Certificate of Formation?
While forming an LLC in New Jersey it is mandatory to file a New Jersey certificate of formation with the secretary of state. The certificate of formation lists basic information about your LLC in the state. New Jersey Department of State has a registration record for all existing business entities. You may also take help from a registered agent to fill up the form hassle-free. It will have different sections in which you have to fill up the details about the business.
Why File a Certificate of Formation with the NJ SOS?
The New Jersey secretary of state needs proof of your business’s existence in the state. The main purpose of filing the certificate of formation is to set apart a legal place in the state. The government will provide several benefits to your business including tax benefits. You will need a New Jersey certificate of formation in legal cases when you wish to sell the LLC, open a bank account, or even when issuing a share.
What is Needed in the Certificate of Formation?
As we have highlighted the importance of the New Jersey certificate of formation, LLCs should also be aware of what details are required for the formation certificate. Here we have highlighted what details would you need to fill in.
1. Entity Name & Type
While forming a business in California, you must have thought about a name for your LLC. You must perform a business entity search before claiming the name you desire. You can duct the process by keeping the naming guidelines in mind. Ensure the name is distinguishable and does not exist in the state. Choose the most suitable name for your business.
2. Purpose
You must describe your business, it is very important for the state to understand the nature of your business. In order to determine that you are not conducting any illegal business. Only if your purpose is clear and valid, you can start your LLC in New Jersey.
3. Duration
Mention the time duration till when your business is expected to end. If there is no definitive time then you can perpetually leave the section blank.
4. Registered Agent & Office
You certainly have to fill in all the information about the appointed registered agent. An NJ registered agent is the one who represents your business. It is necessary to fill out the details of the registered agent from their personal name and address to their official name and address.
How To File My New Jersey Certificate of Formation?
You to file the New Jersey certificate of formation with the secretary of state. You can either file it online or post it to the state department. Make sure you pay the filing fee as well along with submitting the certificate with SOS. The two ways are as follows:
1. Online: You can visit the official website of NJ SOS and fill up the form by paying a filing fee. You can submit it online and once the certificate of formation is approved, you will receive a mail regarding the same.
2. By Mail: The other option is to post the certificate of formation after downloading it online. You can pay the filing fees online and once the department approves the document, you will receive a mail. You can even drop off the form in-person by visiting the nearest postal service.
- Mail Address:
NJ Division of Revenue
PO Box 308
Trenton, NJ 08646 - Drop-Off Address:
New Jersey Division of Revenue
33 W. State St.
Trenton, NJ 08608
Note: It will take 5-30 minutes to process your NJ certificate of formation if you fill it up online.
Can I Amend the New Jersey Certificate of Formation?
Yes, you can revise your certificate of formation even after filling it with the New Jersey secretary of state. The owner must carefully update the details and verify them before submitting them. You can change and update the information online or by sending mail to the department of state. The state provides a certificate of amendment for a cost of $100.
How Much Does New Jersey Certificate of Formation Cost?
All the domestic entities have to pay a $125 filing fee for the New Jersey certificate of formation to the secretary of state. These fees are acceptable for only domestic entities whereas all non-profit entities have to pay $75 filing fees. If you are not a resident of NJ, you can start a foreign LLC and submit the form by paying a filing fee of $125.
What is the Approval Time For The Articles of Organization?
If you are filing your certificate of formation online then it will take about 5 to 30 minutes to process. The Secretary of State will approve your form within a given time period but it may take longer in certain exceptional cases.
What After My New Jersey Filing Process?
Once you have successfully filed the New Jersey certificate of formation with the state you will be eligible to operate a business legally. Although there are other considerations that should be your focus after this. Here is what you should do next.
Get an Operating Agreement: You must draft an operating agreement which is an internal document that helps resolve future conflicts. acts as proof of your company agreements. Your operating agreement will include all the details of a company from management structure to distribution information. Here is how you can create a New Jersey LLC operating agreement.
Get EIN: Employer Identification Number (EIN) acts as a social security number for your business. You must have an EIN number for your business to open a bank account or even to hire an employee for your business. Certainly, you will be able to claim an EIN number from the official website of the IRS.
Licenses & Permits: Your business needs licenses and permits to remain compliant with the state guidelines. Depending on the nature of the business, LLCs can apply for licenses and permits in the state of New Jersey.
Business Bank Account: To avoid putting your personal assets at risk, you must open a business bank account. It is necessary to separate your personal account from your business.
Frequently Asked Questions
1. What is the tax structure in New Jersey?
The tax structure for an LLC in New Jersey is the default. You will get an option to select from various tax structs once you obtain an EIN.
2. Is it necessary to file an annual report in New Jersey?
Yes, you have to file an annual report every year and you can even renew it by filing a $75 fee.
3. Is it important to open a business bank account?
Yes, to protect the corporate veil of your business and for the sake of protecting personal assets, a business bank account is necessary.
4. How can I secure the name of my LLC in New Jersey?
You must do an NJ business entity search and then file a certificate of formation to secure your name in the state.
Also, Remember
It is necessary to file a New Jersey certificate of formation with the state to claim a legal record in the state. You can process this on your own or through a registered agent. It is advisable to go through the process first to get an idea of what to expect. This would make your process smooth and quick.