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hey everyone it's Pierre Lin for your entertainment today we're going to show you how to start an LLC in New Jersey so let's get started [Music] starting LLC right here in New Jersey is not difficult at all it's a pretty fairly simple process but you have to make sure that if you are watching this video from another state that you check in on your own respective states laws and regulations we're also going to include links on all of our resources down in the show notes below we can go over what an LLC is and why you should have one if you just want to get into how to do it you can always just skip to the time code that's listed below and it'll just go right to that part of the video so let's say you're a musician and you're starting to diversify your portfolio you have performances you have education you have some recording stuff let's say you also want to start a music studio with your friend or some kind of music company starting an LLC is a great way to get yourself organized as well as bring credibility to your new business so what is an LLC an LLC is a limited liability company is the most popular type of legal business entity to allow businesses to have a lower level of liability you can always set up your LLC to have all different kinds of corporations which actually allows you to protect yourself separately from your business I'm not going to provide much legal advice here I would leave that up to a lawyer or attorney and I suggest that you go and seek one if you want to find out more about how an LLC can protect your business musicians that are frequently contracting other musicians or are constantly paying other musicians in their band might want to consider starting an LLC not only to legally protect themselves but also as a way to deduct items on their taxes you also will have the ability to start a business bank account which allows you to separate your personal items from your business expenses also having a business bank account means having a business credit card which means that you're able to build credit for your business you can always add a DBA which means doing business as which allows you to have different names under the same business in case you are thinking about branching out into different realms again each state has their own laws and regulations regarding LLC's as well as fees so make sure that you double check in your own respective states all the classifications of LLC's can get a little bit complicated so I definitely suggest seeking out some professional help those are just a couple reasons I could think of off the top of my head about why it's important to start LLC so now I'll show you how you can start your own LLC right here in Jersey now that I'm on the computer I can show you how you can start your LLC right here in New Jersey this is done online as you can tell we're going to go to the New Jersey portal website now this is actually done through New Jersey gov so don't get freaked out if you see New Jersey portal com it's just the online service that they use so this is state of New Jersey division of Revenue and Enterprise Services business formation and that is what you should be seeing in this top left corner we will put this link into the show notes so that you can just click right there and bring you right to this page so we're going to do is going to skip all of this stuff here we're going to get started all right great now we're on the business name page first question to ask what type of business would you like to form now they're going to give you a ton of options here the one that's the most common and I'm guessing you fit right into this category is New Jersey domestic limited liability company LLC what that means is you operate mainly in the United States and that you are pretty much the sole owner of your business now you can also have multiple members within an LLC but inside New Jersey they actually just consider that a multi member LLC instead of an LLP but that's a whole nother conversation so you're going to click on here so next we're going to do is you're going to put in your business name do not add that LLC afterwards that is going to come later in the filing process so for example if you let's say you want to start a music studio so Joe's music studio and let's see if that's taken I'm pretty sure it is oh wow nevermind that is not taken just by the way all right so next is going to ask you to select a business designator what this means is basically what's going to come after the name like Joe's music studio LLC so for most people they want to keep it pretty simple then they'll just say LLC to be honest I'm not sure why you would want to spell it out in different ways you're gonna have to ask someone else about that but for most of us it's just going to be LLC and you just click continue alright so now we're on the business data page here we're going to see that we need to fill in some of these boxes here there's the employer identification number and a ICS code duration and effective date now for these two options here as you can see they're optional so for the ein number now usually you get an EIN number after you register your business so we don't need to fill this out now I not too sure why they have this year I'm you know someone else could explain that better but here is the N ICS code now you could find out what this is so it's the North American industry classification system it's a number that is used to categorize your business so what you can do is you can actually search for your particular business so let's say it's something with music let's see what it says here so as you can see there's all different kinds of businesses for music and you would choose the code that best fits your particular business so okay so let's just say that for the sake of time here just it's musical record released promoting and distributing let's say that's your business here okay so we're going to do come back here put that in again just optional not really necessary now here for duration it says enter period of time that the business entity is to exist at that period is indefinite you may leave this field blank so what that means is if you are planning to only have this business for a year or a couple of months you need to put that in however if you plan to have it as long as you can or that you are planning to keep it then you just need to leave it blank next we have the effective date now depending on the business type of future date may be chosen and is optional so if you plan to start your business on a particular day then you may choose that let's just say April 15th but if you are looking to start it as soon as possible you would just choose it for that particular date so it'll be March 15th here all right so we're going to continue all right so next we're on to business purpose you may enter a business purpose - up to 300 characters so it's asking for you to be as specific as possible about what your business does so in this case we're saying that you know this is a music studio and that we do musical recording releasing promoting and distributing so we could just put that stuff in there and any additional information that you could put in there is best again you want to keep it relevant to what you actually do it's not really extremely necessary to you know upload this kind of description unless you I guess you'd do something very robust but if it's pretty simple then that is completely fine so we're just going to continue here now we're on to the main business address so this is where your business will be operating from now you know a lot of musicians probably don't have a separate office but if that's the case that'll be your office address hopefully with a mailing address but you know usually it's just going to be your personal address so I'm just going to make one up here alright so I just filled out one two three candy lane in Teaneck New Jersey alright it says here main business address can be US or international address alright just let you know okay so now we're on registered agent what you want to do is you want to enter a registered agent or office unless you have their number but I'm guessing that we don't so usually you'll just be your own agent most of the time so I'm just going to go ahead and fill this out all right so I just filled it out as if it was my pretend address here okay continue so now we're on to the members and managers page usually you are the member there can be multiple members within an LLC it's just called multi-member LLC pretty simple so I'm just going to enter in my own name here and address all right so what I did there is I just entered in the same information going click continue so now we're on the other provisions additional information area this is where you wish to add any articles provisions or if you have a date in which the LLC will be dissolved so for most of us is going to be left open here now I'm to be honest I've never really done this portion right here I would definitely consult a lawyer or attorney to figure out what you want to do in this position but I would just click continue alright now we're on to signatures okay so usually you are signing it yourself so I'm going to put that right in here Lin authorized representative save check mark that box right there continue all right so now we're on to reviewing your information so you just click on these boxes make sure everything is cool Jones music studio awesome LLC nice musical recording releasing promoting and distributing all right this is our main address that we entered earlier this is the registered agent which is yourself again members magic which is yourself again and the signature which is yes you guessed it yourself again and then you just press continue now we're on to the payment area first going to ask you which documents that you need so the first one's always need an official authenticated formation document the other two are optional here I would consult a lawyer or attorney to see if you actually need these the contact information is usually yourself okay so you fill that in the usual thing and then you could either pay by credit card or a check all right this is the current pricing that they have for for forming a LLC in New Jersey so the actual formation itself is going to cost $125 which is really not that bad compared to some other states credit card fees $3.50 so all together it's be 120 850 okay and the e check would just be $1 all right so you can get these free text email notifications for reminders about your animal report which is due every single year so I usually select that and alerts to notify me when the Charter document filing is performed for my business which is also a free alert so you might as well sign up for that as well so then you just press pay now okay so now we're into the secure payment area you know this is where you fill out all your payment info so you can get everything paid for now I can't go beyond this point because obviously I am NOT going to pay for a fake a business so I'm just going to open up some documents that you would usually get right after you make a payment or right after you have formed your business this is regarding your EIN number so your EIN numbers kind of like the social security of your business so make sure you keep this in a safe place you're going to need it when you're either opening up a bank account or doing some taxes and all that kind of stuff so you know keep this in a safe place so here we have the certificate of formation and this is specifically for New Jersey so sometimes they're going to ask for this particular identification number for your business in Jersey so you need to keep this as well you know obviously I blurred out our information but it should look something like this okay and there'll be a stamp of approval on the second page for my first actually LLC I did it through my company works and you know what they say that you need after an LLC are the following organizational readings minutes as well as the LLC operating agreement so after because the LLC the muscle was known as organizational meeting which basically just says how the business is going to be ran what are the ways that you're going to split the profit amongst this members you know all that kind of good stuff so you actually by law supposed to be owning this meeting at least once a year so you just want to make sure that you have that all on paper here is the operating agreement for your LLC and what it might look like we included a template that we found online at the in the show notes down here so you need to just go through this fill out all the necessary information and you should be good to go well I'm actually showing you here is it's kind of like a screenshot of the confirmation page that I got right after registering the business I want to make sure that I didn't lose this but you can see here there's some next steps that you'll need to register your LLC for tax and employer purposes register now online or within 60 days of today's date we'll send you email reminder of deadline for registering for tax employer purposes so they'll give you a little link there you just gotta fill that out that's also through NJ portal just our security purposes I would try to take a screenshot every single step that you've taken including the confirmation page just so you can refer back to it in the future if you need to alright so that concludes our video on how to form your LLC right here in new jersey if you have any questions about that form there is a little section about frequently asked questions so you could get more to death if you want some clarity on certain sections okay I am doing this on Chrome you know obviously there's going to be some small differences between browsers but it should generally run like this and again always consult some professionals in terms of like a lawyer or accountant to just double check to make sure that this is the best thing to do for your own business there's a lot of perks to having a LLC but their call Sobe a lot of downside so you know just figure it out according to your own business and think they'll put you in a good position so I want to thank everyone for watching this video and again please subscribe please like comment share all that kind of stuff helps us we are going for the 1000 sub challenge so if we get thousand subscribers what we're going to do is we're going to have a giant party kind of networking event with all of our previous guests and it'll just be a good time and again this is jazz biz 101 take care of the business so that you can get to the music thank you very much take care [Music]

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