United States

Company Formation in New Jersey

State of New Jersey — Department of the Treasury (Division of Revenue)

Formation Time

2–4 business days

Min. Capital

No minimum

Corporate Tax

6.5% to 9.0% NJ Corporation Business Tax (CBT); 21% federal CIT

Foreign Ownership

100%

Overview

New Jersey is globally renowned as the 'Medicine Chest of the World' and the premier East Coast life sciences, pharmaceutical, and financial technology corridor. Situated directly at the center of the Boston-to-Washington megalopolis and bordering New York City across the Hudson River, New Jersey is home to 14 of the world's 20 largest pharmaceutical corporations (including Johnson & Johnson global headquarters, Merck, Bristol Myers Squibb, Novartis, Sanofi, and Pfizer operations). Beyond biopharmaceuticals, New Jersey boasts the East Coast's busiest maritime container port (Port Newark-Elizabeth Marine Terminal) and an ultra-low latency telecommunications hub in Secaucus housing the primary data centers for Wall Street's major stock exchanges (NYSE, NASDAQ, and BATS). With top-ranked research universities led by Princeton University and Rutgers, an educated scientific workforce, and rapid digital formation via the NJ Division of Revenue, New Jersey delivers exceptional commercial prestige for healthcare, biotech, logistics, and high-frequency financial engineering firms.

Global pharmaceutical capital

Direct border with NYC & Manhattan

Busiest East Coast container port

Secaucus Wall Street data centers

0% sales tax on clothing & shoes

Why Choose New Jersey

Global capital for pharmaceuticals, medical technology, and biotechnology

Direct proximity to New York City and Philadelphia capital markets

Home to Port Newark-Elizabeth — the largest container port on the US Atlantic Coast

Secaucus financial data centers housing matching engines for NYSE and NASDAQ

World-renowned academic and research infrastructure anchored by Princeton University

0% state sales tax on clothing, footwear, and most medical products

Urban Enterprise Zones (UEZs) offering reduced 3.3125% sales tax incentives

Seamless digital formation and remote US corporate banking access

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
Limited Liability Company (LLC)	100%	1 manager/member	None	Pass-through taxation for single/multi-member LLCs; subject to NJ CBT if electing corporate status	Life science consultancies, e-commerce, trade logistics, tech startups
C-Corporation	100%	1 individual	None	6.5% to 9.0% NJ CBT + 21% US federal CIT	Biotech firms raising institutional VC, pharmaceutical developers, cross-border M&A

Step-by-Step Formation Process

Name Availability & Registered Agent

1 day

Verify corporate name and appoint licensed New Jersey registered agent.

Certificate of Formation Filing

2–3 days

File Certificate of Formation with the NJ Department of the Treasury Division of Revenue.

IRS EIN Issuance

1–2 days

Obtain federal Employer Identification Number from the IRS.

NJ Business Tax Registration (Form NJ-REG)

1–2 days

Remote US Corporate Banking

3–5 days

Open FDIC-insured US corporate bank account with Mercury, Relay, or national commercial banks.

Costs & Fees

Government / License Fee	USD 125+
Our Service Fee	USD 850 – 2,200
Annual Renewal	USD 75+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

New Jersey entities enjoy tier-1 corporate banking access through Wall Street-adjacent financial institutions, major retail networks (JPMorgan Chase, TD Bank, Bank of America), and premier digital business banking platforms (Mercury, Relay).

Account Opening Time

3–7 business days

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

JPMorgan ChaseTD Bank (Cherry Hill / Mount Laurel US HQ)Bank of AmericaMercuryRelay

Tax Overview

Corporate Tax

6.5% (net income ≤ $50K), 7.5% ($50K–$100K), 9.0% (> $100K) NJ Corporation Business Tax (CBT) + 21% federal CIT

Personal Income Tax

1.4% to 10.75% progressive state income tax

VAT / Sales Tax

6.625% state sales tax (0% clothing, shoes, groceries, prescription drugs; 3.3125% in UEZs)

Capital Gains Tax

Taxed as ordinary income under New Jersey tax law

Withholding Tax

30% federal statutory non-resident withholding (reduced by tax treaties)

Double Tax Treaties

68 countries

Single-member LLCs owned by non-US residents pay 0% NJ corporate income tax if they have no US office, no employees in NJ, and derive foreign-source income.

Visa & Residency

E-2 Treaty Investor Visa

2–5 years, renewable

For citizens of 80+ treaty nations investing substantial capital in a New Jersey enterprise

L-1 Intra-Company Transferee

1–7 years

For executives transferring from a foreign parent to a New Jersey operating subsidiary

Family visa: AvailableProcessing: 2–6 months

Frequently Asked Questions

Why is New Jersey called the 'Medicine Chest of the World'?

New Jersey hosts 14 of the world's 20 largest pharmaceutical companies, including Johnson & Johnson's global headquarters in New Brunswick, alongside major US research facilities for Merck, Novartis, Bristol Myers Squibb, Sanofi, and Bayer. The state accounts for thousands of biopharma patents and leads the nation in life sciences employment.

Can a foreign non-resident form an LLC in New Jersey remotely?

Yes. Foreign citizens can form and 100% own a New Jersey LLC or corporation without traveling to the United States or possessing a US visa. Incorp International provides the mandatory New Jersey registered agent and facilitates remote bank account opening.

Does New Jersey have sales tax on clothing and digital goods?

New Jersey charges 0% sales tax on clothing and footwear, making it a major retail shopping destination. The standard state sales tax rate is 6.625%, with reduced 3.3125% rates in designated Urban Enterprise Zones (UEZs). Digital B2B professional services are generally not subject to NJ sales tax.

How does New Jersey Corporation Business Tax (CBT) apply to an LLC?

A standard New Jersey LLC is treated as a pass-through entity for tax purposes. If the LLC is owned by non-US residents who do not have an office, employees, or physical inventory in New Jersey, and whose income is foreign-sourced, it is generally exempt from New Jersey CBT and US federal income tax.

What is the annual report fee for a New Jersey company?

New Jersey requires all LLCs and corporations to file an Annual Report with the Division of Revenue before the last day of the anniversary month of formation. The state filing fee is $75.

Why do financial trading firms set up servers in Secaucus, New Jersey?

Secaucus, New Jersey houses the massive Equinix NY4 data center campus, which hosts the physical matching engines for the New York Stock Exchange, NASDAQ, and BATS. High-frequency trading and fintech firms establish New Jersey entities to co-locate servers for sub-millisecond execution speeds.