To create an LLC in New Jersey, the Public Records Filing for New Business Entity must be filed to the New Jersey Department of Treasury, Division of Revenue. The filing must contain information about the LLC’s name and address, name and address of the LLC’s registered agent, its purpose, dissolution date if applicable, and the name and address of members or managers.
New Jersey law requires that the LLC name must contain the terms “Limited Liability Company” or “L.L.C.”. The LLC’s name must be distinctly different from the names of other business entities already registered with the New Jersey Division of Revenue. The New Jersey Business Record Business Entity Name Search (https://www.njportal.com/DOR/BusinessNameSearch/default.aspx) can be used to check for name availability.
New Jersey LLCs must have a minimum of one or more managers, who must be at least 18 years old. New Jersey law prohibits professionals such as accountants, attorneys, and physicians to form PLLC’s, but they are allowed to incorporate as an LLC.
What is an LLC?
LLC refers to a Limited Liability Company, and it is organized by business owners. They have fewer corporate formalities and can be taxed by the IRS as a sole proprietorship, S corporation, or C corporation.
Each state has different requirements and regulations regarding the formation of an LLC. Business owners should check with state laws when considering forming an LLC.
Owners of LLCs are known as members, they can be individuals, corporations, other LLCs, or foreign entities. There is no limit on the number of members an LLC can have. In most states, “single-member” LLCs are allowed, where there is only one owner involved in managing the LLC.
The IRS will treat the LLC as a corporation, partnership, or included in the LLC owners personal tax return. A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless they file Form 8832 and elect to be treated as a corporation.
LLCs carry tax advantages over other forms of business such as limited partnerships. The owners of an LLC do not assume personal liability for business debt, and any losses of the LLC can be used as tax deductions against active income.
An LLC can be formed through the state business formation process or consulting with LegalZoom.