In New Jersey, the most common structure for real estate enterprises is an LLC. This is due to the ease with which a limited liability corporation (LLC) may be formed and operated.
If your real estate company is sued, an LLC is a distinct legal organization that may safeguard your personal assets (vehicle, home, money). LLCs also provide credibility and tax-saving possibilities.
It’s Simple to Form a Real Estate LLC in New Jersey.
In New Jersey, you may form a real estate LLC by filing the Certificate of Formation with the NJ Division of Revenue and Enterprise Services. In New Jersey, forming a real estate LLC costs $125.
The first step in organizing a real estate LLC is to choose a firm name. You must offer your company a distinct name that complies with New Jersey naming regulations.
When you submit your Certificate of Formation, you will formally register your name.
Determine if the name is available in New Jersey. Make sure the company name you choose isn’t currently in use by doing an online LLC name search.
A registered agent must be included when you submit your Certificate of Formation.
The role of a registered agent is to receive legal papers such as service of process and tax notifications on behalf of your LLC.
The agent for service of process for your real estate LLC might be a person or a registered agent service. Although you may serve as your own registered agent, many company owners choose to employ a registered agent service.
Consider the following while selecting a registered agent:
You must submit the Certificate of Formation with the New Jersey Division of Revenue and Enterprise Services to register your New Jersey LLC. This may be done online or in the mail.
Consider incorporating your real estate LLC as a S Corp. As an IRS tax classification, a S corp may give certain tax advantages to your real estate firm.
LLCs must submit Form NJ-REG – Business Registration Application with the New Jersey Division of Revenue and Enterprise Services within 60 days of formation for business entity and tax filings.
An LLC operating agreement is a legal document that defines your real estate LLC’s ownership and member responsibilities.
An operating agreement may benefit even single-member LLCs.
You may include conditions in your real estate LLC operating agreement as long as they do not violate New Jersey law.
The US Internal Revenue Service (IRS) uses an Employer Identification Number (EIN) to identify and tax firms. It’s essentially a business’s Social Security number.
Following the Formation of a Real Estate LLC
