New Jersey LLC vs Washington LLC (2026)
Compare New Jersey LLC vs Washington LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
By Edmond Hui · Last updated: August 4, 2026
Verdict: New Jersey wins for most businesses
For most New Jersey-based businesses, forming locally in New Jersey is the smarter choice. You avoid paying fees in two states and managing compliance in both. Washington only makes sense if your business genuinely operates there, and even then the total costs deserve a hard look.
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| Factor | New Jersey | Washington |
|---|---|---|
| Filing Fee | $125 | $180 |
| Processing Time | Not published by the state | Within 15 business days (paper) |
| Annual Report Fee | $75 | $70 |
| Annual Report Due | Anniversary month | Last day of anniversary month |
| State Income Tax | Yes | No |
| Anonymous LLC | No | No |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $125 + registered agent ~$150/yr |
Full fee breakdown for either state: New Jersey LLC cost and Washington LLC cost.
Business Climate: New Jersey vs Washington
| Factor | New Jersey | Washington |
|---|---|---|
| 5-year business survival rate | 50.5% (#29 of 51) | 42.2% (#51 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +12.2% YoY (#9 of 51 by volume) | -25.5% YoY (#15 of 51 by volume) |
Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)
Compare LLC Costs: New Jersey vs Washington
New Jersey
Washington
Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where a state requires publication, and any one-time registration charge a state requires before the LLC may trade. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Montana's annual report is free when filed by April 15 and $35 after, a waiver the Secretary of State applies at its discretion. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.
Filing Fees & Formation Costs
New Jersey charges $125 to form an LLC, while Washington charges $180. New Jersey is $55 cheaper upfront. The cost that usually gets overlooked: if you form in Washington but operate in New Jersey, you must also register as a foreign LLC in New Jersey (a $125 filing) and maintain a registered agent in Washington (typically around $150 per year). That puts the realistic first-year cost of the Washington route at roughly $455, versus $125 for simply forming in New Jersey. Only one side of this comparison is knowable: Washington publishes within 15 business days (paper), while New Jersey publishes no standard processing time, so the two can't be ranked against each other on speed.
Taxes: New Jersey vs Washington
Washington has no personal income tax while New Jersey does, but forming your LLC in Washington won't change that. LLC profits pass through to you and are taxed where you live and operate (in New Jersey), not where the LLC is registered, so a Washington LLC offers no income-tax savings for a New Jersey-based business. New Jersey levies a graduated Gross Income Tax on individuals, with a top rate of 10.75% (rate in effect since 2018 per NJ Division of Taxation); LLC pass-through income is taxed to members. LLCs classified as partnerships with more than two owners and NJ-source income owe an annual partnership filing fee of $150 per owner (capped at $250,000); LLCs electing corporate taxation are subject to the Corporation Business Tax instead. Otherwise no franchise tax beyond the $75 annual report. Washington imposes the Business & Occupation (B&O) tax on gross receipts.
Privacy & Asset Protection
Neither New Jersey nor Washington offers anonymous LLC formation: both states require owner or manager information on public filings. Washington's report records the LLC's governors (members/managers) on the public record. Business owners who prioritize privacy typically form a holding company in a state like Wyoming or New Mexico instead. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal.
Annual Maintenance Costs
New Jersey LLCs file an annual report ($75, due in the anniversary month), and Washington LLCs file an annual report ($70, due in the anniversary month). If you form in Washington while operating in New Jersey, you maintain filings in both states, Washington's report plus New Jersey's equivalent for your foreign registration, and pay a Washington registered agent roughly $150 per year. That brings ongoing costs of the Washington route to roughly $295 per year, versus about $75 to keep a domestic New Jersey LLC in good standing. There are also recurring state taxes to weigh on each side. LLCs classified as partnerships with more than two owners and NJ-source income owe an annual partnership filing fee of $150 per owner (capped at $250,000); LLCs electing corporate taxation are subject to the Corporation Business Tax instead. Otherwise no franchise tax beyond the $75 annual report. Washington imposes the Business & Occupation (B&O) tax on gross receipts.
When Washington Actually Makes Sense
Forming in Washington makes sense in a few specific situations: your business genuinely operates in Washington, with a real office, employees, or property there, or you're relocating to Washington in the near future, which would also move you out of New Jersey's personal income tax. For a typical small business based in New Jersey, none of these usually apply. Registering a Washington LLC to do business back home means $125 in New Jersey foreign-registration fees, on top of Washington's $200 formation fee, while New Jersey's own annual report runs $75 a year and is due in the anniversary month. When in doubt, form where you actually do business.
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