Key Takeaways
- New Jersey law does not require an LLC to have an operating agreement. It is highly advisable to create one to establish internal operations, ownership structure, and member responsibilities, minimizing potential conflicts.
- Utilize our free New Jersey LLC Operating Agreement template to ensure compliance with state laws.
- To form an LLC in New Jersey, you’ll need to file a Public Records Filing for New Business Entity with the New Jersey Division of Revenue and Enterprise Services, appoint a registered agent, and satisfy the necessary filing fee.
New Jersey LLC Operating Agreement Templates by Type
Single Member LLC
Basic Single Member LLC Operating Agreement
Used 4,920 times
Are you required to uphold your limited liability corporation status in accordance with state law? If the business is sued, the owner’s assets may be safeguarded by this agreement.
Use this operating agreement template in New Jersey when there is only one owner of the LLC.
Multi Member LLC
Multi-Member LLC Operating Agreement Template
Used 4,872 times
Ensure that your newly formed LLC is run the right way by having a multi-member operating agreement in place.
Utilize this operating agreement template in New Jersey when multiple individuals or entities co-own the LLC.
50/50 LLC
50/50 LLC Operating Agreement Template
Used 4,872 times
This free 50/50 LLC Operating Agreement template for businesses with equal ownership.
Employ this operating agreement template in New Jersey when two equal partners equally share ownership and management responsibilities within the LLC.
Member-managed LLC
Member-Managed LLC Operating Agreement Template
Used 4,919 times
A manager is chosen by the firm owners to oversee day-to-day operations in a manager-managed LLC. Use this Member-Managed LLC Operating Agreement Template right away.
Opt for this operating agreement template in New Jersey when the LLC’s management responsibilities are delegated to appointed members.
Legal Requirements
Here are some points to consider when drafting a Limited Liability Company Operating Agreement:
- Ownership: It’s crucial to specify the structure of your business, whether it’s a single-member, member-managed, or manager-managed LLC. The distribution of profits, losses, and assets among members should be clearly defined, often based on initial investment.
- Rights and Responsibilities: This should outline each member’s daily duties. Clarity helps in decision-making and conflict resolution within the business.
- Joining and Exiting the LLC: There should be clear rules for adding new members and handling departures. It should specify what new members receive, their initial investment, and the entitlements of departing members.
- Dissolution: The agreement should include the terms for dissolving the Limited Liability Company. This includes dividing remaining assets after debts are paid and rules regarding former members starting similar businesses.
Severability Provision: This standard legal clause should be included in the agreement.
How to Form LLC in New Jersey
Forming a Limited Liability Company can be a straightforward process if you follow the following steps:
Choose a Name and Registered Agent:
- The first step is to decide on a name for your Limited Liability Company that represents your business well. You’ll also need to select a Registered Agent to handle legal documents for your LLC. As for the business name, you can check its availability online at the State’s Record portal.
File Certificate of Formation:
- This document needs to be filed with the State of New Jersey. It officially registers your Limited Liability Company and includes important details about your business.
Apply for an EIN:
- An Employer Identification Number (EIN) is required for tax purposes. You can apply for this number with the IRS.
Obtain an Operating Agreement:
- While not mandatory in this state, an Operating Agreement is highly recommended. This document outlines the structure of your business, including member roles and responsibilities.
Handle Ongoing Compliance and Maintenance:
- Once your Limited Liability Company is established, ongoing requirements exist to keep it in good standing. These may include annual reports, tax filings, and maintaining a Registered Agent.
New Jersey LLC Laws
Here are some legal considerations for Limited Liability Companies for this states:
- No State Income Tax: New Jersey doesn’t impose a state income tax on LLCs. This can be a financial advantage for businesses operating in the state.
- Annual Reporting Requirements: These businesses are required to submit a yearly report. This helps keep the state updated on the company’s activities and current information.
- Registered Agent Requirement: Every Limited Liability Company in New Jersey must designate a Registered Agent. An LLC has designated a person or entity to receive legal documents on its behalf. This individual or entity is responsible for obtaining and handling all legal documents.
- Foreign LLC Registration: If your entity was formed outside of the state but conducts business in the state, it must register as a foreign LLC.
- Real Estate Considerations: If your Limited Liability Company owns real estate in New Jersey, specific laws and regulations may apply. It’s important to understand these when managing property owned by your LLC.
- Employment Laws: If your Limited Liability Company has employees, you must comply with the state employment laws. These cover areas such as minimum wage, overtime, and workplace safety.
Remember, understanding and complying with these laws is crucial for the smooth operation of your LLC.
