New Jersey LLC Formation
by
Attorney Anthony Mancuso
How you can create an LLC in New Jersey.
You can avoid personal liability for business debts by forming a limited liability company (LLC). An LLC provides a legal ownership structure that protects its owners, similar to a corporation. (In contrast, when you operate as a sole proprietor or a partnership, you are personally responsible for debts of the business.)
Setting up an LLC in New Jersey requires two short steps:
1. Choose a name for your LLC.
The name of your business cannot be the same as the name of another business entity on file with the Department of the Treasury. To see if your proposed name is unique, you can search New Jersey’s name database.
In New Jersey your LLC name must include the words "Limited Liability Company" or the abbreviation "L.L.C."
2. File a Certificate of Formation.
In New Jersey, the formation document is called the Certificate of Formation. You'll need to prepare and file the Certificate of Formation with the New Jersey Department of the Treasury, Division of Revenue. The Certificate of Formation should include your LLC’s name, its purpose, its address, and the name and address of your registered agent.
To form your LLC online right now, use Nolo's online formation service, called Online New Jersey LLC. Nolo will file your Certificate of Formation with the Division of Revenue.
That’s it! That’s all it takes to become an LLC in New Jersey.
Operating Your LLC
Though not legally required, you should also create an LLC operating agreement that will guide the LLC owners in operating the business (much like a partnership agreement or corporate bylaws). Nolo's Online New Jersey LLC can create a customized LLC operating agreement for you when you form your LLC. If you've already formed an LLC, see Form Your Own Limited Liability Company, by Anthony Mancuso (Nolo), for a standard LLC operating agreement. The operating agreement does not need to be filed with the Secretary of State.
To retain your LLC’s status as a separate entity, LLC members must observe certain formalities, such as keeping detailed financial records and recording minutes of major decisions. For more information, as well as minutes forms, consent forms, and over 80 resolutions, see Your Limited Liability Company: An Operating Manual, by Anthony Mancuso (Nolo).
Last updated on 6/30/08.
|
