Is an LLC necessary for the limited amount of business I am doing?
While not necessary, it is a good idea for any sole proprietorship to register as a one-person LLC, as an added precaution. It is easy, inexpensive, and adds an extra layer of liability protection “just in case”.
What is the fee schedule for registering an LLC in NJ?
The filing fee for registering an LLC in NJ is $125.00. It can be done online at – https://www.state.nj.us/treasury/revenue/dcr/filing/leadpg.htm
Here is the website of the fee schedule for LLC filings – http://www.state.nj.us/treasury/revenue/dcr/geninfo/fees_pd.shtml#llc_file
What is involved in the annual reporting for an LLC and what is the fee?
A one person LLC normally reports income and expenses the same as a “regular” sole proprietor - on Schedule C of the proprietor’s annual Form 1040. There is no separate income tax filing, as is the case with a corporation. The owner does not receive a salary, requiring additional payroll tax filings, but a “draw”. All the tax deductions and benefits allowed to a “regular” sole proprietor – deduction of health insurance premiums, deduction for a “home office” (if there is a profit) and the ability to establish a self-employed retirement plan are deductible on the 1040 of the owner of a one-person LLC.The only separate filing requirement is an “Annual Report” filed online with the State of NJ. This filing includes an annual fee of $50.00 (tax deductible).
Business Liability Insurance with or without an LLC
The amount of a business’s liability insurance coverage should reflect the potential liability that the business could incur. The cost of registering and maintaining an LLC is so small that excessive liability coverage would probably be more expensive. The mere fact that a business is registered as an LLC does not replace the need for business liability insurance, just as incorporating a business does not. Limited liability merely helps to protect the owner’s personal assets in the case of a lawsuit. A business, regardless of how organized or registered, would need liability insurance if there is potential for liability.
I already have a NJ Business Registration Certificate – where else should I register?
This should be all you need to do to register your business with the State of NJ. If you do decide to register as an LLC you may need to file a corrected registration.
In NJ, where should I register my business name on the federal, state, county, city level?
If "This Is My Business" is the name of the business (or, for example "This Is My Business, LLC) and it has been given an EIN by the IRS and is registered with the State of NJ (and you have a NJ BRC) there is no other required registration that I know of. You would only need to register a “trade name” if you were using a different name (i.e. the business was organized as John Doe, LLC, but you want to operate as "This Is My Business"). As stated above, if registering the business as an LLC you may need to notify the IRS and/or State of NJ of the change.
I haven’t received any forms from NJ to report quarterly losses – am I supposed to request them?
As either a “regular” sole proprietor or a one-person LLC you do not have to file any quarterly forms to report losses, or income. You simply report the activity for the year on Schedule C of your annual Form 1040. You would only need to file quarterly reports if you hired employees (you would not be an employee).
What you need to complete your Schedule C tax return.