Cape May County NJ Business License: Seasonal Mercantile Licenses, the Wildwoods Tourism Tax and Shore STR Rules

If you plan to open a shop, restaurant, rental property or service business on the Cape May County shore, you will not find a county business license to apply for. Licensing happens at the town level, and the taxes that catch shore operators off guard are the tourism and occupancy charges layered on top of sales tax. This guide covers Cape May County town by town, with rates and fees as of October 2026.

This guide is informational content, not legal or tax advice. Rules, fees and tax rates change, and some local figures below are marked for you to confirm. Check every number with the agency named before you sign a lease, buy inventory or file a return. For anything involving a lease, a purchase, or an entity structure, talk with a licensed attorney. For sales tax, occupancy tax and entity tax questions, talk with a CPA.

Cape May County does not issue a business license

New Jersey has no general statewide business license, and Cape May County licenses nothing. Your licensing questions break into three layers: the town where you operate, the state tax registration every business must complete, and any occupation-specific license from a state agency.

The state registration step is Form NJ-REG, filed with the Division of Revenue and Enterprise Services (DORES) after you form your entity. It produces your New Jersey tax identification number and, where applicable, a sales tax certificate of authority. Many owners confuse this with a license. The Business Registration Certificate (BRC) is proof that you completed NJ-REG tax registration. It is not a license. Separately, contractors and subcontractors doing business with the State and other public agencies, unincorporated construction contractors working in New Jersey, and applicants for Casino Control Commission licensure need their own BRC.

Occupation rules also apply. Many occupations and industries need a professional or industry license from the Division of Consumer Affairs or another state agency. Confirm which, if any, applies to your work before you open.

Mercantile licenses: each town sets its own rules

Most shore towns require a mercantile license, a local permit that lets a business operate within that municipality. A license from one town does not carry over to the next, and the rules, deadlines and fees differ. Here is what we verified and what you still need to confirm.

Town	What we verified	What to confirm and with whom
Ocean City	Requires a license for every business. The license is not limited to retail.	Fees vary by business type. Ask the Office of Licensing for the fee that applies to your category.
Cape May City	The license year runs May 1 to April 30. Proof of insurance is required. A 10% late charge applies for each 30 days a payment is late.	Current fee schedule and application forms from the city.
Wildwood	Licensed through the City Clerk.	Fees. Ask the City Clerk directly.
North Wildwood	Licensed through the City Clerk.	Fees. Ask the City Clerk directly.
Sea Isle City	Check with the city clerk.	Do not assume the countywide pattern applies. Contact the Sea Isle City clerk before you sign a lease or order signage.

Cape May mercantile license timing

If you are applying for a Cape May mercantile license, the May 1 to April 30 license year is the detail that trips people up. A business that opens in mid-summer still works on that cycle, so the timing of your application affects what you pay and when renewal is due. Attach proof of insurance with the application, and calendar the renewal date. A late payment costs 10% of the amount due for each 30 days it is outstanding.

Ocean City business license for every business

Ocean City is the broadest case. The license applies to every business, so a seasonal bike rental, a food stand, and a rental management office all need to ask. Because fees vary by business type, the Office of Licensing is the right place to confirm the correct category before you apply. Ask for the category name in writing so the fee you pay matches the business you actually run.

Wildwood business license and North Wildwood

Wildwood and North Wildwood both license through the City Clerk. Call or write to each clerk for the schedule before you budget. Ask whether the license covers your specific activity, such as food, rentals, or amusements, since the category decides the fee.

Cape May County Health Department

The Cape May County Health Department serves all 16 towns in the county, so a single office covers the shore communities, not just one city. If your business handles food or other health-regulated activity, contact the department early to confirm which permits and inspections apply. The health department works alongside your town license and does not replace it. Plan for both.

The Wildwoods tourism tax

Wildwood, North Wildwood and Wildwood Crest carry a combined tourism tax on lodging that operators must understand before they set rates. The Cape May County Tourism Tax is 2%, plus a 1.85% assessment. These two charges apply only in those three towns. Each town also carries a 3.15% state fee.

For a short-term rental booked through a marketplace, the total is 13.625%. The four pieces that build that total are shown below. Confirm the breakdown, and how marketplace collection works for your listing, with the New Jersey Division of Taxation and the county.

Component	Rate	Where it applies
New Jersey state sales tax	6.625%	Statewide
Cape May County Tourism Tax	2%	Wildwood, North Wildwood, Wildwood Crest
Tourism tax assessment	1.85%	Wildwood, North Wildwood, Wildwood Crest
State fee	3.15%	Wildwood, North Wildwood, Wildwood Crest
Total on a marketplace short-term rental	13.625%	Wildwood, North Wildwood, Wildwood Crest

Wildwood, North Wildwood, West Wildwood and Wildwood Crest are all Urban Enterprise Zones (UEZs). UEZ status can affect eligibility for state incentive programs, and the rules for those programs are separate from the license and tax rules above. Confirm whether your location qualifies, and what the program requires, before you count on any benefit.

The 3% municipal occupancy tax

Several shore towns levy a separate 3% municipal occupancy tax. It applies in these places, among others:

• Cape May City: hotels and short-term rentals.
• Stone Harbor: effective June 1, 2026. Other towns also levy it, so confirm each town's start date and scope.
• Ocean City: short-term rentals only, effective November 1, 2025. Hotels and motels were not part of that change, so confirm your lodging type with the city.

Do not assume that one town's occupancy tax covers its neighbors. A property in one town may owe the 3% tax while a property a few blocks away in another town does not. Map each property to its municipality before you publish rates.

Short-term rental rules on the shore

Shore short-term rental (STR) compliance has three separate layers: the occupancy and tourism charges described above, the state sales tax, and any local registration or operating rules. Local registration and operating rules vary by town. Confirm with the municipal clerk or zoning office for each property before you accept a booking.

Practical checks before you list:

1. Confirm the town where the property sits, using the municipal boundary and not the mailing address.
2. Confirm whether that town levies the 3% occupancy tax and when it started.
3. If the property is in Wildwood, North Wildwood or Wildwood Crest, confirm the 13.625% marketplace total and how the listing platform collects it.
4. Ask the town whether a local registration or inspection applies before the first booking.

State steps that come before the shore paperwork

If you are forming a new entity for a shore business, the state steps come first. Formation of an LLC costs $100 with the Certificate of Formation, a fee that took effect July 1, 2026. A corporation's Certificate of Incorporation also carries a $100 filing fee. New Jersey has no publication requirement for either entity.

After formation, the annual report is $75 and is due every year by the last day of the month in which the business was formed. Two consecutive missed years lead to revocation, so put the date on your calendar when you form. Online filing runs through the New Jersey Business Portal at https://www.njportal.com/DOR/BusinessFormation/, and you can check name availability at https://www.njportal.com/DOR/BusinessNameSearch/Search/Availability. The entity name must include a designator such as LLC.

Your registered agent must be a New Jersey street address. A PO box can be listed only if the street address is listed too. This matters for owners who live out of state and run a shore business part time, because the registered office must be reachable in New Jersey. Changing the agent or office, or an agent resigning without a successor, costs $25.

For sales tax registration, use the New Jersey Division of Taxation at https://www.nj.gov/treasury/taxation/ and the sales tax permit portal at https://www.njportal.com/DOR/BusinessRegistration/. The state sales tax rate is 6.625%. If you need a tax ID or an employer registration, complete NJ-REG through the same DORES channel.

Shore business license checklist

1. Choose the town first. Your license, occupancy tax, and any UEZ eligibility all depend on the municipality, not the county.
2. Form the entity and file NJ-REG. Form the LLC or corporation, then complete tax registration and get your tax ID.
3. Apply for the town mercantile license. Ask for the category name and fee in writing, and attach proof of insurance where the town requires it.
4. Call the health department if you handle food or regulated products. Confirm which permits and inspections apply.
5. Confirm tourism and occupancy charges. Apply the Wildwoods tourism tax, the 3% occupancy tax, and the marketplace rules only where they apply.
6. Calendar every renewal. Cape May City's license year ends April 30, the annual report is due in your formation month, and late charges accrue.

Who to call for each question

Question	Agency or office
Mercantile license fees and categories (Ocean City)	Office of Licensing
Mercantile license fees (Wildwood, North Wildwood)	City Clerk of each town
Mercantile license rules (Sea Isle City)	Sea Isle City clerk
Food and health permits, all 16 towns	Cape May County Health Department
Sales tax, tourism tax and occupancy tax treatment	New Jersey Division of Taxation and Cape May County
Entity formation, annual report and NJ-REG	New Jersey Division of Revenue and Enterprise Services (DORES)
Business planning help	New Jersey Small Business Development Centers at https://njsbdc.com/

Why the county matters for your planning

Cape May County is the only shrinking county in New Jersey, with population down 2.0% since 2020. That makes the seasonal and visitor economy more important to most shore businesses, and it means a shore license is a business decision as well as a compliance task. Read the licensing and tax rules as part of your revenue model, not as an afterthought.

When to get professional help

Simple sole operations in one town can often be handled with the agency calls above. Get professional help when you have more than one property, more than one town, a rental management arrangement, employees, or a marketplace listing that spans several municipalities. An attorney can review entity structure and lease terms. A CPA can review sales tax, occupancy tax and income tax treatment. Ask each professional to confirm the figures in this guide against current agency pages before you rely on them.

Reminder: this is informational content, not legal or tax advice. Verify fees, deadlines and tax rates with the named agency before you act.