There are specific procedures you must take in order to ensure a smooth and legal process if you own an LLC in New Jersey and have decided to close it down. The following steps will show you how to dissolve an LLC in New Jersey:
First step: dissolve the LLC In New Jersey, an LLC must first be formally dissolved before it may be closed. A Certificate of Dissolution must be submitted to the New Jersey Department of Treasury in order to do this. Through the website of the Division of Revenue and Enterprise Services, you can submit the form online. You must submit details regarding your LLC, such as its name, address, and creation date. The cost of submitting the Certificate of Dissolution is $125.
Wrap up business affairs in Step 2 After submitting the Certificate of Dissolution, you must finish up the business affairs of your LLC. This include settling any outstanding obligations and ending agreements with clients, merchants, and suppliers. Any licenses, permits, or registrations your LLC has with the state of New Jersey must likewise be revoked.
Step 3: Submit Your Final Tax Returns Any unpaid taxes to the state of New Jersey are the responsibility of your LLC. You must submit your LLC’s final tax filings and make any required tax payments. You must also submit your final payroll taxes and distribute W-2 forms if you have employees.
Step 4: Close Bank Accounts and Cancel EIN Your Employer Identification Number (EIN) for your LLC should be canceled with the IRS once you’ve submitted your final tax returns and settled any unpaid taxes. You should also transfer any residual assets to the members and terminate any bank accounts your LLC has. Comparing an LLC and a sole proprietorship The subject of whether it is better to operate as a sole proprietorship or an LLC is one that is frequently asked. Because LLCs provide limited liability protection, the owners’ private assets are shielded from company obligations. Due to the lack of this protection in sole proprietorships, the owner’s personal assets may be at danger in the event that the company is sued. However, compared to sole proprietorships, maintaining an LLC is more expensive and paper-intensive. Cost of a NJ Business License Depending on the kind of business you run and the area where it is located, a New Jersey business license costs a different amount. A retail food outlet license, for instance, is $100, whereas a license for a home repair contractor is $110. The New Jersey Department of Consumer Affairs is the best place to contact to find out the exact license costs for your company. Consequences of Failure to File Annual Returns You risk fines and penalties if you don’t submit your LLC’s yearly reports. The certificate of formation for your LLC may be revoked by the state of New Jersey, in which case your company will no longer be legitimate. Additionally, unless you submit the required reports and pay any associated fees, you won’t be able to file any legal documents or carry on business in the state. Who Must Submit a NJ Annual Report? Every LLC with a New Jersey state registration is required to submit an annual report. The report must be submitted no later than the final day of the month commemorating the founding of the LLC. There is a $50 filing fee for the report, which can be submitted online through the website of the Division of Revenue and Enterprise Services.