CobaltProsper

How to start an LLC in New Jersey

By Brent Chudoba, editor Updated

Forming an LLC in New Jersey costs $100 to file the Certificate of Formation with the New Jersey Secretary of State. After that you file an annual report of $75. New Jersey charges no franchise tax on a standard LLC. The Certificate of Formation fee was reduced from $125 to $100 effective July 1, 2026 under New Jersey's Business Formation Fee Act (A-5325/S-4534), which also standardized/reduced fees for amendments, mergers, and dissolutions statewide. The $75 Annual Report fee (due every year in the anniversary month of formation) is unchanged. A registered agent with a physical NJ street address is required (no P.O. boxes).

How much does it cost to start an LLC in New Jersey?

New Jersey LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Certificate of Formation)$100
Annual report$75/year
Franchise or business taxNone
Registered agentRequired

Source: New Jersey Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in New Jersey?

  1. Name your LLC. Pick a name that is available and meets New Jersey naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. New Jersey requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Certificate of Formation. Submit it to the New Jersey Secretary of State and pay the $100 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your annual report. New Jersey charges $75 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does New Jersey have a franchise tax on an LLC?

No. New Jersey does not impose a franchise tax on standard LLCs.

How is an LLC taxed in New Jersey?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. New Jersey has a state individual income tax with a top rate of 10.75% (graduated brackets), so those profits are taxed on your New Jersey return on top of federal tax. Single/MFS (Table A), 7 brackets: 1.4% (≤$20,000), 1.75% ($20,000-$35,000), 3.5% ($35,000-$40,000), 5.525% ($40,000-$75,000), 6.37% ($75,000-$500,000), 8.97% ($500,000-$1,000,000), 10.75% (over $1,000,000). MFJ/HOH/qualifying widow(er) (Table B), 8 brackets: 1.4% (≤$20,000), 1.75% ($20,000-$50,000), 2.45% ($50,000-$70,000), 3.5% ($70,000-$80,000), 5.525% ($80,000-$150,000), 6.37% ($150,000-$500,000), 8.97% ($500,000-$1,000,000), 10.75% (over $1,000,000). Rates unchanged since the 2020 'millionaire's tax' law (P.L. 2020, c.94).

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

Sources