New Jersey is the “Garden State” in USA and the third wealthiest American state, according to recent statistics involving details about the household income. With openings to the Atlantic Ocean and bordered by the states of New York, Pennsylvania and Delaware River, New Jersey is an important business hub which offers a multitude of business possibilities in reliable conditions to those in search of business developments in USA. For a better understanding of the business environment and its requirements, we have prepared a general guide to company incorporation in New Jersey. You may also rely on the complete support offered for company registration matters by our team of company formation specialists in USA.

How to set up an LLC in New Jersey

Starting a business in USA may prove to be not only a good idea, but also a proper start for foreigners who want to explore the numerous possibilities on the prolific and respected American market. In this sense, a limited liability company may be the suitable business form for many types of operations you might want to develop. The incorporation procedure starts with the Business Division of New Jersey Secretary of State and the requirements imposed. The Articles of Association and the Memorandum of Association are the company’s main documents which contain details about the shareholders, the business address, the activities, the board of directors and the name of the registered agent. The representative of your business, whether you want to operate in New Jersey or from abroad, must be a resident of this state, an individual or another company. We also mention that an operating agreement is, in most cases, suggested as it is a legal document with information about the obligations of each member of the company, the voting rights and details of how company liquidation is performed.

Apply for EIN in New Jersey

If you want to open a company in USA, including New Jersey, it is suggested to respect the tax legislation and the provisions in this sense. To prove that you will pay the taxes, you must obtain the EIN (Employer Identification Number) or the federal tax number as it is known. The documents of the company must be provided to the Internal Service Revenue (IRS), the authority in charge of tax matters through its local offices. For any help in this sense, we suggest you address to our company incorporation agents in USA.

The sales tax in New Jersey

The general sales tax in New Jersey is set at 6.625% and it is the only one to be considered, as there are no city sales taxes imposed. One should bear in mind the following taxes which can be imposed, depending on the activities in New Jersey: for consumer use, for sellers use, rental tax or lodgings tax. Please also observe the state income tax with a range between 1.4% and 8.97%, depending on the registered incomes.

Set up a business bank account

At the time of company registration in New Jersey, an entrepreneur must open a business bank account for further financial operations. Foreign investors who want to register a company in USA have a multitude of choices, as the banking system is well developed and can offer varied financial services tailored to their needs. Likewise, one should bear in mind that for opening a bank account in New Jersey, the EIN of the company must be offered. Please talk to our advisors for support in this matter.

Accounting services for your business in New Jersey

Having operations on the market means dealing with varied financial matters like invoices, payments and related. All the financial operations of a New Jersey company must be recorded in the firm with the help of an accounting department in charge of bookkeeping, payroll, annual financial statements. If you would like to externalize such services, we recommend you to ask our consultants for support in this sense, as our team can offer complete support in accounting matters.

Employment in New Jersey

The workforce in New Jersey attracts foreign investors looking for a business development with the available skilled workforce on the market. Thanks to the extensive and appreciated programs offered by the government but not limited to this, young individuals can enter the market as skilled workers and can develop their experience in a wide range of sectors.

Company formation services in New Jersey

If you want to set up a company in USA, including New Jersey, we can manage the registration procedure and offer support in the following:

• company formation with the authorities in charge;
• documents preparation;
• tax compliance;
• tax advice;
• business consulting;
• accounting services on request;
• legal support in company matters from our local advisors.

Economy facts about New Jersey

New Jersey is among the states which abolished the slavery in the 19th century, and which proceeded with the fast industrialization. Due to excellent fiscal policies and a large palette of business opportunities, New Jersey rapidly became recognized as the second largest state for a high number of millionaires. The economy is diverse and it is sustained by the financial industry, telecommunication, tourism, publishing and many more. Trenton is the capital of New Jersey and a respected business hub among investors from abroad. Toms River, Princeton, Newark, Atlantic City, Jersey City or Cherry Hill are a few of the appealing destinations ready for business in some different prolific fields.

For starting a business in the state of New Jersey, foreigners should pay attention to the taxes which need to be paid. It is good to know that there is no privilege or franchise tax imposed on businesses in New Jersey, but one must consider the corporate business tax or the CBT as it is known. Our specialists in company formation in USA are at the disposal of entrepreneurs with information about the taxes they need to pay and about the registration of businesses in each state, including New Jersey.

What is the CBT rate in New Jersey?

Companies with establishments in New Jersey are subject to the corporate business tax which applies on the entire net income as seen in the table below:

Taxable Income Tax Rate
$50,000 or less: 6.5%
Between $50,000 and $100,000: 7.5%
More than $100,000: 9%

What is AMA and how is it applied in New Jersey?

The Alternative Minimum Assessment based on gross receipts or gross profits involve the multistate corporations that have a business presence in New Jersey, but restricted to soliciting orders in USA. In other words, AMA based on gross receipts or gross profits is available for companies that do not want to pay the CBT imposed for the corporate income, under the federal law involving the taxation in New Jersey.

The Corporate Business Tax for S corporations in New Jersey

S corporations are subject to CBT in New Jersey and particularly for gross receipts as follows in this table:

Gross Receipts Tax
Less than $100,000: $375
Between $100,000 and $500,000: $562.50
Between $500,000 and $1,000,000: $1,125
More than $1,000,000: $1,500

For complete information about the taxes a company needs to pay in New Jersey, we recommend you address to our company incorporation agents in USA who can also help you start a business in USA, including in New Jersey. Our team can handle the registration process of your company and can provide support and information about the taxation in New Jersey.

What is the sales tax in New Jersey?

The sales tax of 6.625% is applicable to goods and services that are for sale purposes in the state of New Jersey. It is good to know that there is no city sales tax.