Forming a Limited Liability Company (LLC) in New Jersey (NJ) offers asset protection and potential tax advantages. Key stages include: Choosing a Name: NJ LLCs must have a distinct name that includes "Limited Liability Company" or its abbreviations ("LLC" or "L.L.C."). NJ's business entity database can be checked to ensure uniqueness. If desired, names can be reserved for 120 days via a Name Reservation Request with the New Jersey Division of Revenue. Filing the Certificate of Formation: File this with the State of NJ, which details the LLC’s name, address, organizers, and purpose. A registered agent must be appointed, which could be yourself or a professional service. Obtaining an Employer Identification Number (EIN): Secure an EIN for your NJ LLC from the IRS. This is necessary for opening a business bank account and filing taxes. If the online application fails, a written request can resolve the issue, though it can take up to two months. Registering with NJ Division of Revenue: Register your LLC and its EIN with the New Jersey Division of Revenue. This can be done online, in person, or by mail. It involves providing specific business details. Drafting an Operating Agreement: This outlines management rules and member relationships within the LLC. Without one, the LLC defaults to the rules set by the New Jersey Limited Liability Company Act. The agreement can be modified by members as required. Opening a Business Bank Account: With your EIN, Certificate of Formation, and Operating Agreement, open a business bank account. Ensure diligent record-keeping of all transactions. Acquiring a Business License or Permit: Depending on the nature of your business, specific state or local government permits may be necessary. Consult with a New Jersey attorney to identify necessary licenses. Completing these steps will solidify the foundation of your NJ LLC, enabling you to proceed with practical steps such as leasing space, hiring staff, and securing clients.
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