Does a NJ LLC Need an EIN?

If you own a company in New Jersey, you might be asking whether you need to obtain an Employer Identification Number (EIN) for your Limited Liability Company (LLC). The Internal Revenue Service (IRS) issues firms with an EIN, a nine-digit number used for tax purposes. The majority of New Jersey LLCs do, in fact, require an EIN. An EIN is essential for LLCs that have workers and those that are taxed as corporations or partnerships. An EIN is additionally necessary to register a business account, submit a loan application, or build credit with many banks, lenders, and suppliers. Getting an EIN is a smart move even if your New Jersey LLC has no workers or partners. It may be necessary to submit an application for certain licenses and permissions and can assist secure your personal identity and assets. So, how much does it cost to obtain an EIN in New Jersey? Fortunately, getting an EIN is free and is possible online via the IRS website. It is also possible to apply via fax or mail, however the processing time may be longer. Be aware of websites operated by third parties who bill you for obtaining an EIN on their behalf. These websites could impose arbitrary fees or offer false information because they are not connected to the IRS.

Let’s now examine the distinctions between an LLC and a S Corp. Limited liability protection is provided by both corporate models, but there are some significant variations. A more adaptable entity is an LLC, which can be taxed as a corporation, partnership, or sole proprietorship. It can have an infinite number of members and has fewer compliance obligations. A corporation that has chosen to be taxed as a pass-through organization is known as a S Corp, on the other hand. It can only have up to 100 shareholders and has stricter compliance standards.

You must designate a registered agent if you decide to create an LLC in New Jersey. On behalf of your LLC, this is the person or organization that will receive court filings and official correspondence. The registered agent must be readily accessible during regular business hours and have a physical address in New Jersey. You can designate yourself as the registered agent, but it’s frequently preferable to use a professional agency to make sure you don’t forget to file crucial paperwork or meet deadlines.

Finally, you might need to restart your business if it has been dormant for a while. Depending on your unique situation, the procedure may vary, but in general it entails submitting papers to the New Jersey Division of Revenue and Enterprise Services and paying any unpaid fines or fees. You can also be required to submit updated information about your company, such as ownership changes or contact details.

In conclusion, most New Jersey LLCs must obtain an EIN, which may be done for free on the IRS website. An S Corp may be a better option for companies with fewer stockholders even though an LLC is a more adaptable entity. Additionally, if your business has been inactive, you may need to restart it and choose a registered agent.