In order to rename an LLC in New Jersey, an amendment to the certificate of incorporation must be submitted to the Division of Revenue and Enterprise Services. The amendment requires a $100 filing fee. Additional charges can be necessary if the LLC’s registered agent or office address are also changing. A NJ corporation must file an amendment to its certificate of incorporation with the Division of Revenue and Enterprise Services in order to change its name. This amendment requires a filing fee of $125. Additional costs can be incurred if the registered agent or office address of the corporation is also changing.
Being a single owner, which is the most basic and typical business form, has a number of drawbacks. The biggest drawback is uncapped personal culpability. Since the owner of a sole proprietorship and the company are virtually one and the same, all debts and legal obligations must be paid personally by the business owner. In the event that the company is sued or unable to pay its debts, the owner’s personal assets, such as their home or car, may be at danger.
A sole proprietorship and a single-member LLC are not the same thing, yet they are somewhat comparable. Since a single-member LLC is a different legal entity from its owner, the owner is only partially liable for the debts and obligations of the business. For taxation purposes, a single-member LLC is still classified as a disregarded entity, which means that the owner must record the LLC’s earnings and outgoings on their own personal tax return.
As the name implies, a single-member LLC may not have more than one owner. The revenues and losses of a multi-member LLC, on the other hand, are shared among the owners in proportion to their ownership stake. Since LLCs are taxed as pass-through entities, meaning that the company’s revenues and losses are passed through to the owners’ personal tax returns, this might be advantageous from a tax perspective.
Similar to an LLC, a S corporation is a form of corporation that has chosen to be taxed as a pass-through organization. An S company has one benefit over an LLC: the owner(s) can receive a salary without having to pay self-employment taxes on that amount. All profits within an LLC are subject to self-employment taxes. S corporations must also adhere to specified corporate formalities and have restrictions on ownership, which may be a drawback for some business owners.
In conclusion, renaming a company in New Jersey can be expensive, particularly for corporations and LLCs. While general partnerships and sole proprietorships are permitted to modify their company name, they do not provide the same level of legal protection as corporations or limited liability companies. Although it cannot have more than one owner, a single-member LLC is not the same as a sole proprietorship and can provide some liability protection. Another choice for business owners is a S corporation, which comes with some tax benefits but also has tight ownership and corporate formalities.
No, a husband and wife are not regarded as one member of an LLC in New Jersey. They can both, however, be LLC members and have stock ownership in the business.