New Jersey Business Compliance Checklist
New Jersey has one of the highest income tax rates (10.75% top) and the strictest ABC test for contractor classification. This page covers everything from filing fees to sales tax to hiring laws.
$125
$75
Every year
6.625%
state base rate
No
1. Entity Formation
| LLC filing fee (Articles of Organization) | $125 |
| Corp filing fee (Articles of Incorporation) | $125 |
| Registered agent required | Yes — must have a physical address in the state |
| Publication requirement | No |
| Processing time | ~7 business days (expedited available for extra fee) |
2. Annual Maintenance
| Annual/periodic report | Every year — fee $75 |
| Franchise tax | None |
3. Sales Tax
| State base rate | 6.625% |
| Combined rate range (with local) | 6.625% – 6.625% |
| Economic nexus (out-of-state seller) | $100,000 OR 200 transactions per year |
| Marketplace facilitator law | Yes — marketplaces (Amazon, Etsy) collect on your behalf. |
Need to check nexus across multiple states? Use our Sales Tax Nexus Checker.
4. Employer Requirements
| Minimum wage | $15.49/hr (2025) |
| Paid sick leave law | Statewide mandate |
| Non-compete enforceability | Enforceable — reasonable scope and duration required |
| Contractor classification test | ABC test — hardest to classify as contractor |
Full employment law breakdown: New Jersey Hiring Laws.
5. Workers' Compensation
New Jersey allows private-market workers' comp insurance (competitive market). Coverage is required starting with your first employee.
Estimate your premium with our Workers' Comp Calculator.
6. State Income Tax
Progressive brackets — top marginal rate is 10.75%. Reciprocity agreement with: PA.
Compliance by Business Structure
Pick your structure to see structure-specific compliance items.
What Makes New Jersey Distinctive
Compliance quirks and rules that separate New Jersey from other states — worth understanding before you file.
- New Jersey charges $125 for LLC formation and $75 for the annual report.
- New Jersey's Division of Revenue and Enterprise Services (state.nj.gov/treasury/revenue) handles entity registration.
- New Jersey has a Corporation Business Tax with a minimum $500 assessment for corporations.
This is a reference, not legal advice.
State fees and rules change. Verify current values with the New Jersey Secretary of State, Department of Revenue, and Department of Labor before filing. For complex situations, consult a licensed CPA or attorney.