LLC Annual Report and Tax Filing Requirements in New Jersey

Limited liability companies (LLCs) can be a great business structure for small businesses. LLCs offer limited liability, a flexible management structure, and different taxing options. But LLCs take some work to maintain.

If you want to form an LLC in New Jersey, you must file an annual report, pay a filing fee, and report and pay various business taxes. Let's take a look at the most important ongoing reporting and state tax filing requirements for New Jersey LLCs. (If you want information about other states' LLC requirements, you can review our article on LLC tax and filing requirements.)

New Jersey LLC Annual Report

The State of New Jersey requires you to file an annual report for your LLC. You must file your LLC annual report online with the Division of Revenue and Enterprise Services (DORES), a division of the New Jersey Treasury. You'll need your LLC's state-issued entity number and original date of organization to access the online form. Only a few pieces of information—mainly the name of your LLC's registered agent and registered office address—are required to complete the report.

The annual report must be filed each year by the end of the anniversary month of the LLC's creation. For example, if you organized your LLC on May 5, then you must file the report each year by May 31. As of 2023, the filing fee is $75.

State Business Taxes in New Jersey

A multi-member LLC is considered a "pass-through tax entity" for income tax purposes. (A single-member LLC is considered a "disregarded entity.") With a pass-through tax entity, the responsibility for paying federal income taxes passes through the LLC itself to the individual LLC members. By default, the LLC doesn't pay taxes on its income. Only the LLC members pay taxes on their share of the LLC's income.

As an LLC member, you'll report and pay your share of the LLC's taxes to the Division of Taxation (DOT) on your personal tax return. The DOT is part of the New Jersey Treasury. You can file and pay your taxes online through the DOT website.

You must register your business with DORES to pay your business taxes by filing Form NJ-REG. You can use the form to register for the following taxes:

• income tax
• sales and use tax, and
• payroll taxes and wage withholding.

Before you start the registration process, you'll need to obtain a federal employer identification number (EIN) from the IRS. Once your business is registered, you'll receive a New Jersey tax ID number and a Business Registration Certificate (BRC).

Minimum filing fee for partnerships with more than two owners. LLCs with more than one owner are taxed as partnerships (a type of pass-through tax entity) by default. In New Jersey, if your LLC has more than two owners, it's responsible for a $150 per partner (member for LLC) filing fee each year unless exempt. You can find more guidance and details on the Instructions for NJ-1065.

Electing the pass-through business alternative income tax (PTE/BAIT). If your LLC is taxed as a pass-through tax entity—which it usually is by default—you can elect to have your LLC taxed at the entity level instead of at the member level. So, your LLC will pay the sum of the LLC members' share of income tax from their distributive shares of the LLC's income. Each member can then claim a tax credit on their share of the LLC's taxes that was already paid. For more, visit the PTE/BAIT section of the DOT website.

Electing corporate tax status. While LLCs are typically taxed as partnerships, you can elect to have your LLC taxed as a corporation for federal tax purposes. You make this election by filing IRS Form 2553 with the IRS. If you elect to have your LLC taxed as a corporation, New Jersey will also tax your LLC as a corporation. New Jersey, like almost every other state, has a corporate income tax—called the corporation business tax (CBT) in New Jersey. The CBT generally is calculated at a series of marginal rates applied to the business's entire net income (in unusual cases there are other ways to calculate the tax). If your LLC is taxed as a corporation you'll need to pay the CBT. Read more on the DOT's corporation business tax overview webpage.

New Jersey Employer Taxes

If your LLC has employees or plans to, you must pay employer taxes to the federal and state governments.

Withholding employee wages. As a New Jersey employer, you must withhold and pay employee income taxes to the DOT. You can register for this tax using Form NJ-REG. You must file and pay withholding taxes periodically—either quarterly, monthly, or weekly. The frequency depends on how much tax you collect per month. You'll report and pay these taxes online through the DOT website. You must also use Form NJ-W-3 each year to reconcile your LLC's tax withholding. The New Jersey Income Tax Withholding Instructions gives details on when and how to file these taxes.

Unemployment insurance (UI) tax. In addition to withholding taxes for employees, your LLC will probably need to register to pay state UI taxes to the Department of Labor and Workforce Development (DLWD). You can register for these taxes online (recommended) or on paper (using Form NJ-REG). Then, every quarter, you'll need to file contribution reports with the DLWD. These reports must be filed electronically. For more information, visit the Division of Unemployment Insurance's frequently asked questions webpage.

New Jersey Sales and Use Tax

If your LLC plans to sell taxable goods or services to customers in New Jersey, you'll need to collect and pay sales tax. You'll need to first enroll with DORES either online or by mail using Form NJ-REG. When you register, indicate that you'll be collecting sales tax, and you'll be issued a New Jersey Certificate of Authority to Collect Sales Tax. You'll need to display this certificate at your place of business.

Then, on a monthly or quarterly basis, you must file a sales tax return (Form ST-50 or Form ST-51) or use the DOT's online sales tax payment system. Check the FAQ section on filing and remitting sales and use tax for more details on how and when to file.

LLC Registration in Other States

If your LLC is organized in New Jersey, but you plan to do business outside the state, you might need to register in the states where you have business activities. Each state has rules and requirements for when an out-of-state (foreign) business must register or qualify to do business in the state.

Typically, you'll have to register or qualify as an out-of-state LLC if you have a physical presence in a state, hire employees in the state, or advertise directly to residents of the state. But you should check the state's laws around qualifying as a foreign business.

To determine whether you need to register your LLC in another state, check out our state guide to qualifying to do business outside your state.

More Information About New Jersey LLCs

The State of New Jersey provides a great resource for business entrepreneurs: Business.NJ.gov. Through this website, you can find information and resources on how to plan, start, operate, and grow your business. By answering a few questions about your business, you'll receive a personalized guide that can instruct you on how to register your business, pay your taxes, and apply for business licenses and permits.

If you want general information about how to run and operate your LLC, check out the articles in the LLC section of our website. If you have particularly complicated tax obligations, consider speaking with a New Jersey business lawyer or tax professional. They can help you determine your tax liabilities and make sure you're meeting your filing and payment deadlines.