<\/span><\/h3>\n\n\n\nTo provide the proper foundations for your New Jersey business, you must create a separate bank account for your LLC.<\/p>\n\n\n\n
Many New Jersey company owners skip this step due to forgetfulness or inexperience, but it is critical enough that you will be happy you did.<\/p>\n\n\n\n
Numerous LLC and small business owners conduct business and personal financial transactions via their personal bank accounts, under the mistaken assumption that having a single bank account for several purposes is convenient or saves time. There are, however, many reasons why this is a bad idea.<\/p>\n\n\n\n
The first reason is that it greatly complicates filing state and federal income taxes. Many company owners who use their personal accounts for both personal and business transactions think they will be able to tell the difference when tax season arrives. However, federal tax returns are frequently filed several months after these transactions occur, and the passage of time only adds to the difficulty of remembering; thus, unless you wish to keep a detailed ledger documenting all your business transactions for tax purposes, it is simpler to open a business bank account.<\/p>\n\n\n\n
The second reason you should avoid doing business transactions for your LLC in New Jersey via your personal bank account is that you lose the personal asset and liability protection for any money in the account. By conducting your LLC's financial operations via your personal bank account, you completely negate the personal liability protection afforded by an LLC for any money in your bank account.<\/p>\n\n\n\n
In summary, you should open a bank account for your LLC to streamline tax filing and protect your personal information and assets.<\/p>\n\n\n\n
To open a bank account for your LLC in New Jersey, you will need a “bank kit.” Numerous formation documents are included in a bank kit, including your Public Records Filing form, Operating Agreement, EIN, and a copy of your LLC's initial resolution. While you may collect all these documents independently, many LLC formation services include bank kits as part of their services.<\/p>\n\n\n\n