Annual Filing Requirements for New Jersey LLCs

Learn about the annual report and tax filing obligations for New Jersey limited liability companies.

To establish and operate a New Jersey limited liability corporation (LLC), you must prepare and submit a number of paperwork with the state. This article discusses the most significant New Jersey LLC continuing reporting and state tax filing obligations.

The Annual Report

Your LLC must submit an annual report with the state of New Jersey. The report must be submitted electronically using the Department of Revenue’s On-line Corporate Annual Report website. To use the online form, you’ll need your LLC’s state-issued entity number and the date it was formed. The report requires just a few pieces of information, including the name of your LLC’s registered agent and the registered office location.

Each year, the annual report must be submitted by the end of the anniversary month of the LLC’s formation. The application cost is $50.

State Corporation Tax

Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members. LLCs do not pay income taxes by default; only its members do. Some states charge LLCs a separate tax or fee for the privilege of conducting business in their jurisdiction. However, New Jersey is not one of those states.

However, in certain situations, the owners of an LLC elect to have their firm taxed as if it were a corporation. This decision is made by submitting IRS Form 2553 to the IRS. (The form is available on the IRS website.) When an LLC elects to be taxed as a corporation rather than as a pass-through entity, the firm must submit a separate tax return. New Jersey, like practically every other state, levies a corporate income tax (New Jersey calls it the corporation business tax or CBT). The CBT is typically determined using a series of marginal rates applied to the total net income of the firm (in unusual cases there are other ways to calculate the tax). If your LLC is taxed as a corporation, you must pay CBT.

Employer Taxes in the State

Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) Employers in New Jersey, however, must additionally pay state taxes.

First, you must withhold and pay employee income taxes to the DOT’s Division of Taxation. Begin by registering your company with the DOT, either on paper (Form NJ-REG) or online (Form NJ-REG). (To register, you’ll need your federal EIN.) After you’ve enrolled, you must submit withholding taxes on a regular basis (for example, monthly or quarterly). Each year, you’ll also need to utilize NJ-W3 to balance your LLC’s tax withholding. Check the Division of Taxation website for further information on which forms to use and where to submit them.

You’ll also need to register to pay state unemployment insurance (UI) taxes. These levies are administered by the Department of Labor and Workforce Development (DLWD). You may register for these taxes either online (which is suggested) or on paper (using Form NJ-REG). You must then submit contribution reports with the DLWD on a quarterly basis. These reports must be submitted either online or electronically. Check out the DWLD website for further details.

Taxes on Sales and Use

If your LLC sells items to clients in New Jersey, you must collect and remit sales tax. The first step is to register your company with the Department of the Treasury’s Division of Revenue and Enterprise Services. You may register by mail using Form NJ-REG (available on the DOT website) or online with the state’s Online Business Filing and Registration Service. Indicate that you will be collecting sales tax when you register, and you will be awarded a New Jersey Certificate of Authority for Sales Tax. Then, you must submit a sales tax return (Form ST-50 or Form ST-51) or utilize the DOT’s online sales tax payment system on a monthly or quarterly basis.

Other States Registration

If you want to do business in states other than New Jersey, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.