Overview Of How To Pay Your New Jersey LLC Taxes
If you have a business in New Jersey, and you are wondering about paying your taxes, you may want to consider all of your options. One of the easiest ways to modify the amount of money that you are paying is to form an LLC which can sometimes be helpful. An LLC is designed to provide personal protection for the owner of the business so that their personal assets cannot be accessed via a lawsuit. However, there are sometimes tax benefits associated with having a limited liability company. Let’s discuss what those are and where you would pay these taxes when it comes time.
Taxes Associated With LLCs
LLCs are sometimes referred to as pass-through limited liability companies. Instead of the LLC having to pay taxes, they go straight to the owners. The reason that this is beneficial, specifically in regard to corporate taxes, is that they won’t have to pay corporate federal taxes first. One of the most common relative examples is how partnerships and sole proprietorships are also paths through entities. The businesses are not going to specifically pay federal income taxes. Taxes are instead assessed based on individual income tax rates.
Where Would You Pay These Taxes?
Where you pay the taxes will depend upon what state you have your LLC. For example, when it comes to tax time, if you are sole proprietorship is guarded by the limited liability company, you will file a Schedule C document that will go in with your 1040 individual tax form. By doing this, your taxes can go directly to the government and will continue to be assessed in this manner.
Setting Up An LLC In New Jersey
In New Jersey, it’s easy to set up an LLC to cover your business. There are documents that you must submit and pay a fee for. Initially, you’re going to set up your LLC name. To do this, you must first assess whether or not that business name has already been registered.
Second, finding the registered agent would be the next step. This company or individual will mediate between you and those sending you legal documents. Finally, you must submit what is called a Public Records Filing. By doing so, you can set up your LLC in a matter of weeks. Another document that you may want to consider creating is the Operating Agreement. In many states, it’s not mandatory to do this.
Overview Of Public Records Filing Documents
At the top of this document will be the name of your LLC. You must add your three-letter code at the end of the name a.k.a. LLC. This statement of purpose for the LLC must also be presented. If this is for the disillusionment of the LLC, you can write the name in that area as well. The address and name of the LLC registered agent must also be presented. Finally, authorized representatives will sign that document. The filing fee is $125 and you can do this through the Division of Revenue Business Formation web portal this is the easiest way to get this document to them so that your LLC can be set up.
What You Should Know About The Operating Agreement
This is a document that is purely voluntary. There are many reasons that you may want to consider completing it, however. For example, it’s going to list all of the members and managers that are part of your LLC. It will also present the responsibilities and rights that each one of them will have. Once this is done, it is a representation of the individual nature of this limited liability company, apart from yourself and the business that you are running. In court, this can prove to be a very important document because of how it divides itself from you and your assets.
How To Set Up An LLC In New Jersey Quickly
Setting up an LLC in New Jersey begins with submitting the Public Records Filing. In the span of a few weeks, it will be certified. You will then have the ability to use all the benefits associated with having a limited liability company. It will allow you to take advantage of the tax benefits and also protect your assets at the same time.
Filling the paperwork out may not be your forte. If that is the case, find a reputable business that can help you. There are companies that are not only in the New Jersey area but also businesses that can serve all 50 states. Once you have found a reliable company, give them a call, and get started with this process of creating a New Jersey LLC for tax purposes. Additionally, you will have the full protection of the LLC working in your favor to protect your assets from being taken from you.