How to Form an LLC in New Jersey

New Jersey: concealed behind the glimmering lights of New York is a notable red flag for any prospective entrepreneur. This state is a hidden treasure for anyone contemplating on starting a business in the USA.

Apart from having a significant location, New Jersey is also renowned for having a notable skilled workforce and infrastructure. This makes the Garden State a suitable location for both citizens and non citizens of the USA, who are interested in expanding or starting a new business.

If you are thinking of venturing on a tech startup, starting an online store, or even launching a consultancy or an import and export business, then form an LLC in New Jersey is a prudent choice.

Legal prerequisites, opening a New Jersey bank account, and registering for taxes are just the few of the many processes we will go over in the further sections of this article.

Why New Jersey?

New Jersey LLCs, or Limited Liability Companies, are the preferred business entities of modern entrepreneurs for a reason. Traditionally, Garden State has many advantages for business formation. But the distinguished ones are:

1. New Jersey LLC and New York LLC are sister states

New Jersey is strategically placed between two major bustling cities: New York and Philadelphia. For any business, this location guarantees access to one of US’s biggest consumer bases.

2. Comprehensive Transportation and Infrastructure

New Jersey has world-class infrastructure systems and:

• maintains over 38,000 miles of highways
• supports multiple international airports
• hosts one of the busiest ports on the East Coast

These assets facilitate effective import and export of goods as well as streamlined supply chain management.

3. Workforce

New Jersey is home to several top-tier universities, such as Princeton, Rutgers, and NJIT. This means businesses in the state have access to an educated and skilled workforce, especially in tech, pharmaceuticals, logistics, and finance.

4. Business Support

New Jersey offers state-level incentives such as:

• Angel Investor Tax Credit
• Grow NJ Assistance Program
• NJEDA grants for startups and small businesses

Additionally, small business development centers offer mentorship, training, and funding.

5. No Residency Requirements for Founders

New Jersey does not require U.S. citizenship or residency to form and own an LLC. Non-residents may own and manage their companies remotely with proper documentation and support services.

Complete Steps on How to Create an LLC in New Jersey

Creation of LLC in New Jersey will be discussed in an easy to understand, systematic manner, as follows:

Step 1: Selecting An LLC Name

Naming a LLC sets the base for a company’s brand. New Jersey has certain rules for naming:

• Naming Rules:
• Must include “Limited Liability Company,” “LLC,” or “L.L.C.”
• Must be different and distinct from any existing business name registered in the state.
• Cannot include restricted words such as bank, insurance, trust, corporation, or university unless you hold the mandatory licenses or permits.
• Cannot suggest the business is a government agency or connected to the federal or state government.

How to Check Name Availability:

Utilize the New Jersey Business Name Search Tool to confirm name availability. Additionally, you can reserve a name for 120 days by submitting Form UNRR-1 for a fee of $50.

Step 2: Designate a Registered Agent

LLC’s registered agents can be individuals or organizations. These agents can be served with legal documents (lawsuits, state notices, tax documents) on behalf of the LLC.

Requirements for Registered Agents in NJ:

• They must be New Jersey residents or a corporation permitted to conduct business in New Jersey.
• Have to be located physically in New Jersey and cannot be a P.O Box address.
• Have to be reachable during gig hours.

Since you can choose to have a staff member within the LLC, or a professional registered agent service. If the owner of the company is a non-American, then hiring a registered agent becomes mandatory to receive all necessary company documents.

Bizstartz offers affordable registered agent services in New Jersey and all other states.

Step 3: Complete Public Records Filing (Articles of Organization)

Open New Jersey LLCs require filing Public Records Filing for New Business Entity with New Jersey Division of Revenue & Enterprise Services to legally acquire your LLC in New Jersey.

How to File:

• File at the NJ Online Filing Portal.
• Filing fee is $125.

You’ll need:

• Business as well as registered agent address.
• Business name, primary purpose (general or specific), and member or manager name(s) and address.

Verification Information:

• LLC name.
• Registered agent details.

Processing Time:

• Filing online is usually instant or takes up to one day to process.
• Post approval, you get a certificate of formation which confirms your LLC is officially registered.

Step 4: Obtain an EIN (Employer Identification Number)

You can think of an EIN as the Social Security Number of your business. It serves several purposes, which include:

• Paying federal and state taxes
• Opening a U.S. business bank account
• Hiring employees
• Applying for licenses and payment processors like Stripe or PayPal

How to Get an EIN:

• U.S. Citizens or residents with an SSN can use the IRS EIN Application portal for a free, instant application.
• Non-residents without SSNs must fill out form SS-4 and submit it via fax or mail.

Bizstartz helps non-residents quickly obtain EINs without needing an SSN.

Step 5: Register for New Jersey State Taxes (NJ-REG)

If your business is physically located in New Jersey and plans to sell, offer taxable services, or hire employees, you need to register with the New Jersey Division of Revenue and Enterprise Services.

This can be done using the NJ-REG system.

Tax Obligations That May Prompt Registration

• Sales and Use Tax: applicable if you are engaging in commerce
• Employer Withholding Tax: applicable if employees are hired
• Corporate Business Tax: applicable if the business entity elects C-corporation taxation
• Partnership or Gross Income Tax: applicable depending on the structure of the LLC

You can register at: NJ Online Tax/Business Registration

Step 6: Formulate an Operating Agreement

While it is optional for LLCs in New Jersey to have an Operating Agreement, if the business is multi-member, it is better to have one.

What an Operating Agreement Should Include:

• Member shareholding and ownership
• Business structure (manager managed, member managed, etc.)
• Allocation of available resources and accounting surpluses
• Voting rights and obligations
• Procedures for changing the composition and the governance of the company
• Dissolution procedures

Having a properly structured Operating Agreement will eliminate ambiguity and safeguard your LLC from disputes or legal distress.

Bizstartz provides tailored Operating Agreements as a part of their LLC formation packages.

Step 7: Obtain a U.S. Business Bank Account

A dedicated business bank account is paramount to:

• Keep a clear legal distinction on personal and business finances
• Streamline financial records and tax submissions
• Receive payments from U.S. clients and platforms like Amazon, Stripe, or PayPal

Requirements:

Business bank account: LLC formation documents (Certificate of Formation)

• EIN from the IRS
• Operating Agreement
• Passport (and visa, if applicable)
• U.S. address (or mailing address)

Note for Non-Residents: Most banks require an in-person visit, but at Bizstartz, we partner with fintech companies that support remote account opening for international founders.

Step 8: Complete and Submit the Annual Report

All LLCs in New Jersey are required to submit an Annual Report to remain in compliance with state regulations.

Key Points:

• Annual Filing Deadline: Every year, the anniversary month of the LLC formation date.
• Annual Filing Cost: $75
• Website: NJ Annual Report Filing Portal
• Keep business info, including registered agent details, up-to-date.

Annual report defaults incur a fine and risk the administrative dissolution of your LLC.

Step 9: Submit BOI Report to FinCEN (New Federal Requirement)

Starting in 2024, all newly formed LLCs will be required to submit a Beneficial Ownership Information (BOI) Report to FinCEN (Financial Crimes Enforcement Network) under the Corporate Transparency Act.

Filing Details:

Due within 90 days of LLC formation

Filing includes the following information of the persons who:

• Hold 25% or more shares in the LLC.
• Significantly control the LLC.
• Filing is free through the FinCEN online portal.
• Failure to file may attract penalties of up to $10,000.
• Bizstartz includes BOI reporting in our all-in-one package.

Estimated Cost of Forming an LLC in New Jersey

Total DIY Cost: ~$200–$300
Total Cost with Full-Service Provider (Bizstartz): ~$600–$800

Final Thoughts

Creating an LLC in New Jersey is beneficial for both local and international business owners.

New Jersey serves as an excellent place to start a business in the U.S. due to its strategic location, access to international markets and amazing infrastructure.

Unfortunately, the EIN applications, compliance regulations, and tax registrations for non-residents can be daunting to navigate without expert assistance.

Need Help Starting Your LLC in New Jersey?

We help non-residents and U.S. citizens start and operate their businesses in the U.S. with ease. Our all-in-one LLC formation package includes:

✅ LLC Formation

✅ EIN (no SSN required)

✅ BOI Reporting

✅ Operating Agreement

✅ Registered Agent Service

✅ U.S. Business Bank Account Guidance

✅ Stripe / PayPal / Amazon Account Setup Guidance

📩 Get Started Today at Bizstartz.com

Or reach out to our team to get a free consultation.