How to Start a Business in New Jersey
Everything you need to form your New Jersey LLC, corporation, or sole proprietorship, with exact fees, timelines, and step-by-step instructions.
New Jersey's growing economy makes it a practical place to start a business. Forming an LLC costs $100, and New Jersey charges no franchise tax on LLCs, taxing profits instead at graduated rates of 1.4% to 10.75% through the state Gross Income Tax. The only recurring state filing requirement is an annual report of $75 due each year by the last day of the month in which the business was formed.
This guide covers every step from choosing your business structure to obtaining necessary licenses and registrations.
Choosing Your New Jersey Business Structure
This is the first decision and it affects everything: taxes, liability, paperwork. If you are unsure, an LLC is the right default for most New Jersey small businesses.
| Entity Type | Liability Protection | Taxation | New Jersey Filing Fee | Annual Cost | Best For |
|---|---|---|---|---|---|
| LLC | Yes | Pass-through | $100 | $75 Annual Report | Most small businesses |
| Corporation | Yes | Double (C-Corp) or pass-through (S-Corp) | $100 | $75 Annual Report | Raising investment, stock options |
| Sole Proprietorship | No | Pass-through | $0 | $0 | Freelancers, side hustles |
| Partnership | No | Pass-through | $0 | $0 | 2+ owners (consider an LLC instead) |
8 Steps to Start Your New Jersey Business
- 1
Choose your business structure
LLC, corporation, or sole proprietorship. Each has different costs, tax treatment, and liability protection.
- 2
Pick and reserve your business name
Search the New Jersey Division of Revenue and Enterprise Services (DORES), Department of the Treasury database. Reserve for $50 (120 days, renewable).
- 3
Appoint a registered agent
Must have a physical New Jersey street address. Can be yourself (free) or a service ($100 to $300 per year).
- 4
File your formation documents
Certificate of Formation (Public Records Filing for New Business Entity, Title 42) ($100) or Certificate of Incorporation (Public Records Filing for New Business Entity, Title 14A) ($100) with the New Jersey Division of Revenue and Enterprise Services (DORES), Department of the Treasury.
- 5
Get your EIN from the IRS
Free, online, takes about 5 minutes. Do not pay anyone for this.
- 6
Register for a sales tax permit if you sell goods
Through the New Jersey Division of Taxation. State sales tax rate: 6.625%.
- 7
Get required licenses and permits
New Jersey issues no general statewide business license.
- 8
Register for New Jersey taxes
Personal income tax: Graduated Gross Income Tax, roughly 1.4% at the bottom to 10.75% on income above $1 million.
How Much Does It Cost to Start a Business in New Jersey?
| Item | Cost | Notes |
|---|---|---|
| LLC filing fee (New Jersey Division of Revenue and Enterprise Services (DORES), Department of the Treasury) Required | $100 | Online filings through the state portal are processed quickly, with roughly one business day to be entered and... |
| Corporation filing fee Required | $100 | If forming a corporation instead |
| Annual Report Required | $75 | Every year by the last day of the month in which the business was formed (the anniversary month). |
| Name reservation | $50 | 120 days, renewable |
| Registered agent service | $0 to $300/yr | Free if you serve as your own |
| EIN (IRS) Required | $0 | Always free |
| Business license | Varies | New Jersey issues no general statewide business license. |
| Operating agreement | $0 to $500+ | Free template or attorney-drafted |
| Realistic LLC total (year 1) | $100 to $475 |
Start a Specific Business in New Jersey
New Jersey Business Guides
- How to Start an LLC in New Jersey
- How to Start a Corporation in New Jersey
- Sole Proprietorship in New Jersey: How to Start One
- New Jersey Business License: What You Need and How to Get It
- New Jersey Home-Based Business Laws: Zoning, Permits and Rules
- How to Get an EIN in New Jersey
- New Jersey Business Name Search: How to Check and Reserve a Name
- How to Get a Resale Certificate in New Jersey
- New Jersey Registered Agent: Requirements and How to Choose One
- Best LLC Services in New Jersey
- New Jersey Business Taxes Explained for New Owners
- How Much Does It Cost to Start a Business in New Jersey
Why Start a Business in New Jersey?
- Forming an LLC or corporation costs $100, cut from $125 on July 1, 2026 by P.L. 2026 c.24, which reduced most business formation filing fees by $25.
- The only recurring state filing is a $75 annual report due the last day of the anniversary month, and New Jersey charges no franchise tax on LLCs.
- Sales and use tax is a single statewide rate of 6.625%.
- The state had about 9.55 million residents as of the July 1, 2025 Census estimate, making it the 11th most populous state and the most densely populated one.
- New Jersey's economy is roughly $688 billion, about the 10th largest among the 50 states.
- Corporation Business Tax starts at 6.5% on entire net income of $50,000 or less, and the extra 2.5% Corporate Transit Fee applies only above $10 million of taxable net income.
New Jersey Business Resources
Frequently Asked Questions
- How long does it take to form an LLC in New Jersey?
- Online filings through the state portal are processed within roughly one business day. Expedited service options are available for an additional cost: 8.5 business hours for $25, same day for $50, two hours for $500, or one hour for $1,000.
- What does it cost to start an LLC in New Jersey in the first year?
- The LLC filing fee is $100. You will also owe the annual report fee of $75, due by the last day of the month in which the LLC was formed. Total first-year costs are $175.
- Can a non-resident of New Jersey form an LLC?
- Yes. The state requires a registered office with a New Jersey street address. There is no state residency requirement for the LLC members or owners.
- What is the cheapest way to start a business in New Jersey?
- Forming an LLC costs $100 and is subject to no state franchise tax. Profits pass through to members and are taxed under the New Jersey Gross Income Tax at graduated rates of 1.4% to 10.75%. LLCs represent a low-cost business structure option in New Jersey.
- Is an operating agreement required for an LLC in New Jersey?
- New Jersey does not require an operating agreement as a filed state document. The state's core LLC requirements are the $100 filing fee for the Certificate of Formation and annual reports of $75 due each year by the last day of the month in which the business was formed.