Business Overview
New Jersey features a diverse economy with strengths in pharmaceuticals, transportation, financial services, and manufacturing. The state offers a strategic location between New York and Philadelphia, excellent infrastructure, and access to a highly educated workforce from prestigious universities.
Key Facts & Figures
| Category | Details |
| Capital | Trenton |
| Major Cities | Newark, Jersey City, Paterson, Elizabeth, Trenton |
| State Sales Tax Rate | 6.63% |
| Local Sales Tax Rate | No local sales tax (special rates in certain areas) |
| Corporate Income Tax | 7.6% Business Profits Tax |
| Physical Nexus Threshold | Physical presence through employees, offices, warehouse, or inventory |
| Economic Nexus Threshold | $100,000 in annual sales or 200 transactions |
Did you know?
New Jersey is home to more pharmaceutical research facilities than any other state, driving global medical innovation.
Setup & Compliance
New Jersey business formation involves several state agencies with specific compliance requirements.
Starting a Business in New Jersey:
- Select Your Business Structure: Consider New Jersey’s tax environment for different entity types.
- Register Your Business: File formation documents with the New Jersey Division of Revenue.
- Register for Tax Accounts: Register for applicable tax accounts with the Division of Taxation.
- Obtain Required Licenses: Research and secure necessary state and local business licenses.
- Register as an Employer: Register with the Department of Labor if hiring employees.
Key Compliance Considerations:
- Annual Reports: New Jersey entities must file annual reports with the Division of Revenue.
- Sales Tax Collection: Collect and remit 6.625% state sales tax on taxable transactions.
- Corporate Business Tax: Corporations pay graduated rates up to 9% on business income.
- Annual Filing Fee: S-corporations pay a minimum $500 filing fee annually.
- Local Requirements: Municipalities may impose additional licensing and regulatory requirements.
Hiring & Payroll
New Jersey provides comprehensive worker protections with several state-specific regulations.
New Jersey Payroll Taxes:
- Unemployment Insurance: Rates from 0.3% to 5.4% on first $38,300 of wages.
- State Income Tax Withholding: Progressive rates required.
- Temporary Disability Insurance: Mandatory employee contribution.
- Workers’ Compensation: Required for all employers.
New Jersey Employment Laws:
- Minimum Wage: $14.13 per hour (as of 2023).
- Paid Sick Leave: Employers with 10+ employees must provide 40 hours of paid sick leave annually.
- Paid Family Leave Insurance program available.
- Final Paycheck: Due on next regular payday.
- New Jersey is not a right-to-work state.
State Incentives
New Jersey provides extensive economic incentives to attract and retain innovative businesses.
Key Business Incentives:
- Grow New Jersey Assistance Program: Tax credits for job creation and retention.
- Economic Redevelopment and Growth Program: Support for economic development projects.
- Research and Development Tax Credit: Supports innovative company development.
Small Business & Startup Support:
- New Jersey Small Business Development Center: Comprehensive business resources.
- Minority and Women-Owned Business Certification Program.
- Urban Transit Hub Tax Credit: Incentives for businesses in transit areas.
Regulatory Considerations
New Jersey provides a comprehensive regulatory framework supporting business innovation.
Key Business Regulations:
- Data Privacy: Advanced laws protecting consumer and business information.
- Environmental Compliance: Stringent regulations for industrial and urban areas.
- Professional Licensing: Mandatory for various professional services.
Additional Regulatory Areas:
- Pharmaceutical and Technology Industry Compliance.
- Financial Services Regulations.
Business Overview
New Jersey features a diverse economy with strengths in pharmaceuticals, transportation, financial services, and manufacturing. The state offers a strategic location between New York and Philadelphia, excellent infrastructure, and access to a highly educated workforce from prestigious universities.
Key Facts & Figures
| Category | Details |
| Capital | Trenton |
| Major Cities | Newark, Jersey City, Paterson, Elizabeth, Trenton |
| State Sales Tax Rate | 6.63% |
| Local Sales Tax Rate | No local sales tax (special rates in certain areas) |
| Corporate Income Tax | 7.6% Business Profits Tax |
| Physical Nexus Threshold | Physical presence through employees, offices, warehouse, or inventory |
| Economic Nexus Threshold | $100,000 in annual sales or 200 transactions |
Did you know?
New Jersey is home to more pharmaceutical research facilities than any other state, driving global medical innovation.
Setup & Compliance
New Jersey business formation involves several state agencies with specific compliance requirements.
Starting a Business in New Jersey:
- Select Your Business Structure: Consider New Jersey’s tax environment for different entity types.
- Register Your Business: File formation documents with the New Jersey Division of Revenue.
- Register for Tax Accounts: Register for applicable tax accounts with the Division of Taxation.
- Obtain Required Licenses: Research and secure necessary state and local business licenses.
- Register as an Employer: Register with the Department of Labor if hiring employees.
Key Compliance Considerations:
- Annual Reports: New Jersey entities must file annual reports with the Division of Revenue.
- Sales Tax Collection: Collect and remit 6.625% state sales tax on taxable transactions.
- Corporate Business Tax: Corporations pay graduated rates up to 9% on business income.
- Annual Filing Fee: S-corporations pay a minimum $500 filing fee annually.
- Local Requirements: Municipalities may impose additional licensing and regulatory requirements.
Hiring & Payroll
New Jersey provides comprehensive worker protections with several state-specific regulations.
New Jersey Payroll Taxes:
- Unemployment Insurance: Rates from 0.3% to 5.4% on first $38,300 of wages.
- State Income Tax Withholding: Progressive rates required.
- Temporary Disability Insurance: Mandatory employee contribution.
- Workers’ Compensation: Required for all employers.
New Jersey Employment Laws:
- Minimum Wage: $14.13 per hour (as of 2023).
- Paid Sick Leave: Employers with 10+ employees must provide 40 hours of paid sick leave annually.
- Paid Family Leave Insurance program available.
- Final Paycheck: Due on next regular payday.
- New Jersey is not a right-to-work state.
State Incentives
New Jersey provides extensive economic incentives to attract and retain innovative businesses.
Key Business Incentives:
- Grow New Jersey Assistance Program: Tax credits for job creation and retention.
- Economic Redevelopment and Growth Program: Support for economic development projects.
- Research and Development Tax Credit: Supports innovative company development.
Small Business & Startup Support:
- New Jersey Small Business Development Center: Comprehensive business resources.
- Minority and Women-Owned Business Certification Program.
- Urban Transit Hub Tax Credit: Incentives for businesses in transit areas.
Regulatory Considerations
New Jersey provides a comprehensive regulatory framework supporting business innovation.
Key Business Regulations:
- Data Privacy: Advanced laws protecting consumer and business information.
- Environmental Compliance: Stringent regulations for industrial and urban areas.
- Professional Licensing: Mandatory for various professional services.
Additional Regulatory Areas:
- Pharmaceutical and Technology Industry Compliance.
- Financial Services Regulations.
