Business Information & Rankings

• New Jersey holds the highest population density of any U.S. state and the highest household income.
• New Jersey ranked 2nd Friendliest State to Start a New Business. (National Policy Research Council, 2005)
• New Jersey ranked 1st on the Best Saving State Survey. (A.G. Edwards’ ‘Nest Egg Index, 2005)
• Newark, NJ listed as the 10th Top City for Doing Business in America. (Inc. magazine, 2004)

Cost of Living Index

Crime Rate

New Jersey has the 9th lowest overall crime ranking in the U.S. (FBI, 2004)

Fees & Taxes

Business Inventory Tax
Business inventory is exempt.

Corporate Income Tax
New Jersey’s corporate tax structure consists of a flat 9% on all corporate income. Corporations with entire net incomes of less than $100,000 pay 7.5%.

Personal Income Tax
New Jersey’s personal income tax system consists of six brackets and a top rate of 6.37% which starts at an income level of $75,000.

Personal Property Tax
New Jersey is one of the 38 states that collect property taxes at both the state and local levels. New Jersey does not assess an intangible personal property tax.

State Sales and Use Tax
Base Rate: 6 %
Machinery Rate: None

There is an exemption for machinery, apparatus or equipment used or consumed directly and primarily in the production of tangible personal property by manufacturing, processing, assembling or refining.

Unemployment Insurance
New Jersey’s new employers’ rate is 2.4825% for 3 years.

Are you wondering if it is a wise decision to incorporate a company in New Jersey? It is definitely a good decision as you can be a part of one of the most diverse economies in the country. The economy is driven by several sectors or industries including life sciences, pharmaceuticals, advanced manufacturing, financial services, information technology, transportation and logistics. In fact, the state has a reputation of being home to the highest concentration of scientists as well as engineers in the world.

What industry would you like your business to grow in? Advanced Manufacturing, Information Technology or something different, new and innovative?

Why Choose New Jersey for Incorporation?

Some of the big brand names that have made NJ their home base include Capgemini, Johnson & Johnson, Merck, Honeywell, and Bed Bath & Beyond among others. You can also set up company in New Jersey because the state provides businesses with a platform that enables high growth.

Now let’s take a look at some of the salient benefits that are responsible for fuelling growth of small businesses:

• Grow NJ Program: This is one of the top incentive programs for those businesses that set up companies in New Jersey. The incentive program focuses on job creation and retention and businesses can benefit from tax credits that are paid on a per new or retained job basis. You can apply for these credits for a period of 10 years. Depending on the type of project, you can benefit from tax credits on a minimum amount of $500 to a maximum cap amount of $12,000. Know More
• Brownfields Remediation: The Brownfield area or zone is considered as a commercial or industrial site that is underutilized or lying vacant. You can benefit from several “Funding Programs” post incorporation in New Jersey Brownfield zone like the Keasbey Woodbridge Brownfield Development Area (BDA). You can also benefit from Federal tax incentives. Check Sites

How do you incorporate in New Jersey?

What is the process through which you can set up company in New Jersey? What type of documentation is required? Can the registration documents be filed online? If you are confronted with these questions then the following steps will help you understand how incorporation works in New Jersey:

Type of Business

What type of business do you want to form? You can choose to form a domestic or a foreign Corporation or any other business like a domestic or foreign limited liability company, partnership, General Partnerships (GP), Limited Liability Partnerships (LLP), and Sole Proprietorship. The first step towards company incorporation in New Jersey is choosing the type of business you want to form.

Business Entity Name

What is the next step towards company incorporation in New Jersey? The next step is to identify and reserve a name and this can be done as follows:

• Naming Requirements: According to NJ Rev Stat § 42:2C-8 (2013) for LLC and NJ Rev Stat § 14A:17-14 (2013) for corporation, a business name should contain the words  “corporation”, “incorporated”, “limited liability company” or abbreviations like “corp.”, “inc.”, “ltd.”, “L.L.C.” or similar abbreviation.
• Business name search: You need to search for a business name that is not in use currently. You can conduct a name availability search here.
• Name Reservation: Once you have identified business entity name, you can reserve the name with the New Jersey Division of Revenue pursuant to NJ Rev Stat § 42:2C-10 (2013) for corporations and NJ Rev Stat § 42:2C-10 (2013) for LLCs.

Choose a Registered Agent

Whether you form a corporation or an LLC business entity, in order to transact business in the state of New Jersey, you will have to maintain a registered agent pursuant to NJ Rev Stat § 42:2C-14 (2013) for LLC and NJ Rev Stat § 14A:4-1 (2013) for Business Corporations.

We are one of the respected registered agents in New Jersey and will be responsible for initiating incorporation in New Jersey through processing of your “Certificate of Formation”, and “Certificate of Incorporation” for domestic entities and “Certificate of Authority” for foreign business entities.

Certificate of Incorporation and Certificate of Authority

You will be required to file “Certificate of Incorporation” pursuant to NJ Rev Stat § 14A:2-7 (2013), if your business is a domestic corporation. You will have to file a “Certificate of Authority” pursuant to NJ Rev Stat § 14A:13-4 (2013), if it is a foreign business entity. In order to streamline the process of incorporation in New Jersey, we can file documents on your behalf through the online process or through an expedited process.

Date Stamped Copies

As part of the process of company incorporation in New Jersey, we will ensure, you receive date-stamped and filed copies that verifies that the state has filed as well as formed your corporation.

Costs and Fees associated with New Jersey Incorporation

What would it cost to set up a company in New Jersey? Check Fees here!

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Why should you form a corporation in New Jersey? There are plenty of reasons including the fact that the state has a strong economy, great workforce, and availability of several business incentive programs. These are probably some of the reasons why there are almost 20 New Jersey based businesses in the Forbes 500 list. The big names include NRG Energy (Rockleigh-based Volvo Group), Teaneck-based Cognizant, Quest Diagnostics, Prudential Financial, Novo Nordisk, Samsung Electronics, and BMW Group. The Garden State definitely provides the right environment and opportunities to small businesses for growth and expansion.

We are one of the top registered agents in New Jersey and can assist you to register your business entity in the state.

Let’s take a look at how you can form a business in New Jersey as an LLC or a Corporation.

New Jersey LLC Registration and Formation

LLC company formation in New Jersey is governed by Chapter 428 Uniform Limited Liability Company Act. The procedure for registration and formation of LLC is as follows:

Step#1: Maintain a registered agent

If you are planning to form a Limited Liability Company in New Jersey then you will be required to continuously maintain a registered agent in the state pursuant to NJ Rev Stat § 42:2C-14 (2013). This law is applicable to domestic limited liability companies as well as foreign limited liability companies. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in New Jersey. We can assist you to form a New Jersey business LLC.

Step#2: LLC Name Reservation

One of the foremost steps towards company formation in New Jersey is identifying a name for your business entity. What is the process? The process is as follows:

• Identify a name for your business entity
• According to NJ Rev Stat § 42:2C-8 (2013), the name should contain the phrase or words “limited liability company” or the abbreviations “L.L.C.”, or “LLC”.
• The chosen name should be distinguishable and should not be deceptively similar to the name of any limited partnership, corporation, or limited liability company
• Apply for reservation of name pursuant to the provisions of NJ Rev Stat § 42:2C-10 (2013) (limited liability companies)
• Submit the form through mail or online with the New Jersey Division of Revenue along with the applicable fee. An LLC can reserve its name for a period of 120 days.

Step#3: Certificate of Formation and Certificate of Authority

If you are planning to form a New Jersey business LLC then the most important step is to prepare and file the proper documents for a Limited Liability Company. The steps are:

• If you want to register a domestic LLC then you will be required to file a “Certificate of Formation” governed by NJ Rev Stat § 42:2C-18 (2013).
• If your business entity is a foreign LLC then you will be required to file a “Certificate of Authority” pursuant to NJ Rev Stat § 42:2C-57 (2013).
• The application or documentation for registration of LLC can be filed with the Department of State, Division of Commercial Recording, in person or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.

In case, you have any questions regarding how to form a business in New Jersey , feel free to call us on 702-871-8678.

New Jersey Corporation Registration and Formation

If you are planning to form a Corporation in New Jersey then the procedure for registration and formation is as follows:

Step#1: Maintain a Registered Agent

If you are planning to form a business or professional corporation in New Jersey then you will be required to continuously maintain a registered agent in the state pursuant to NJ Rev Stat § 14A:4-1 (2013). This law is applicable to domestic as well as foreign corporations. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in New Jersey. We can assist you to form a business in New Jersey as we are in compliance with all regulations in the State of New Jersey.

Step#2: Corporate Name Reservation

In order to form a corporation in New Jersey, one of the key steps is identifying a name for your business entity. What is the process? The process is as follows:

• Identify a name for your business entity
• According to NJ Rev Stat § 14A:17-14 (2013), a corporate name should contain the phrase or words “corporation”, “company”, “incorporated”, or the abbreviations “Corp.”, or “Inc.”
• The chosen name should be distinguishable and should not be deceptively similar to the name of any limited liability company, limited partnership, or corporation
• Apply for reservation of name pursuant to NJ Rev Stat § 14A:2-3 (2013).
• Submit the form through mail or online with the New Jersey Division of Revenue along with the applicable fee. A business corporation can reserve its name for a period of 120 days.

Step#3: Certificate of Incorporation and Certificate of Authority

If you are planning to form a corporation in New Jersey, then the most important step is to prepare and file the proper documents for a business corporation. The formation will be governed by 2013 New Jersey Revised Statutes, Title 14A – Corporations, General. The steps are:

• If you want to register a domestic corporation then you will be required to file “Certificate of Incorporation” pursuant to NJ Rev Stat § 14A:2-7 (2013).
• If your business entity is a foreign corporation then you will be required to file a ” Certificate of Authority” to transact business in the state pursuant to NJ Rev Stat § 14A:13-4 (2013).
• The application or documentation for registration of a corporation can be filed with the office of NJ Division of Revenue, Corporate Filing Unit, in person or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the incorporation.

If you have any questions regarding New Jersey incorporation or LLC formation, you can simply visit the New Jersey Business formation page.

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Known as the “Crossroads of the East,”, New Jersey’s economy is driven by several different industries with the major league players being manufacturing and distribution. It is considered as the greatest chemical producing state and is home to over 15,000 factories. If you register a new company in New Jersey, you can be rest assured that it will be a key player in a growing economy.

Advantages of setting up an LLC or Corporation

As a business grows, the economy also grows and vice-versa. Ever wondered what factors drive business growth? Of course, infrastructure plays a key role for a start-up company in New Jersey but apart from that, it also depends on the type of business you form. For example, a limited liability company has several advantages over a general partnership. Let’s take a quick look at some of the advantages of forming an LLC or a Corporation in New Jersey.

Advantage#1: Salient benefits of Corporations or LLCs

Corporation

• Grow New Jersey Assistance Program (Grow NJ): Grow NJ is a program targeted at start-up companies in New Jersey and you can benefit from tax credits on job creation and retention. This incentive program is aimed at strengthening the state’s competitive edge in the global marketplace. Businesses may be eligible for tax credits that range from $500 to $5,000 per job, per year; and then there is the bonus credit that ranges from $250 to $3,000 per job, per year. More Information
• Independent Life: One of the salient advantages of an S Corporation in New Jersey is that it enjoys an independent life. The death or incapacitation of a stockholder will not disturb operations of the business.
• Pass through taxation: If you register a new company in New Jersey as an S corporation then the corporation or firm will not pay any income tax. Instead, the income or loss of the corporation will be passed on to the stockholders.

LLC

• Sales and Use Tax Exemption (STX) Program: One of the advantages of a start-up company in New Jersey is the Sales and Use Tax Exemption (STX) Program. Businesses that make specific purchases for renovation and construction of a new business facility or location will be eligible for a sales tax exemption. The exemption is valid on purchase of equipment, machinery, fixtures, furniture and furnishings, and building materials used for the project.
• Limited Liability: If you register a new business in New Jersey as an LLC then you will be able to enjoy limited liability protection. This means claimants can sue the LLC and not the owner or investors.
• Flexible Profit Distribution: An LLC has the benefit of being able to select different ways of distribution of profits.

Advantage#2: Business Incentives

There is a variety of business incentive programs available for small and medium enterprises or start-up companies in New Jersey. Let’s look at some of the top programs in New Jersey.

• Premier Lender Program: Starting a new business can be such a tough task unless you have access to financing options and this is where the state of New Jersey can help. The “Premier Lender Program” is a low cost financing option through which a start-up company in New Jersey can receive a loan of up to $2 million or up to $1.5 million in loan guarantees on fixed assets.
• Garden State Growth Zone Business Lease Incentive: This is another good program for new as well as established businesses. The program known as the Garden State Growth Zone (GSGZ) Business Lease Incentive (BLI) offers reimbursements to both profit and nonprofit businesses. The reimbursement is a percentage of the annual lease payments and eligible areas need to be between 500 – 5,000 sq.ft. This program is available in five Garden State Growth Zones, which are Camden, Atlantic City, Passaic, Trenton, and Paterson. More Information

Are there any Disadvantages of Incorporating in New Jersey?

When you register a new business in New Jersey, you can be rest assured that there is a wide variety of business incentives to leverage but are there any disadvantages? The disadvantages are limited to the type of business entity you form. For instance, an LLC can get dissolved when a member dies or if it undergoes bankruptcy. Similarly, the process of incorporation may lead to higher overall taxes. The disadvantages will not affect business growth keeping in mind the incentives and infrastructure offered by the state.

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Once you have taken the decision to form a business in the Garden State, you need to ask yourself: what else do I need to make my business operational? Registration of your business is the first step but until and unless you have a permit or business license, you will be unable to operate in the state. The licenses, the validity, the fee, and issuing authority vary according to the type of business or industry as well as the physical location of your business.

It is important to know that there are certain licenses issued by the state of New Jersey while for certain types of services, a business license may be issued by the city or county. You may even require more than one licence depending on the type of business.

New Jersey Business License Requirements

What are the requirements for obtaining a business license in New Jersey? Which business entities require a license and which requires permits? Who is the issuing authority for these licenses? These are some of the important questions that you might be confronted with and hence, we have created a guide that will help you answer some of these questions.

The most important step towards acquiring a company licence in New Jersey is identifying the type of business.

Step#1: The Industry or Business Type

How would you know what type of business or professional license is required to operate in New Jersey? Which type of business license is issued by the state? The type of industry or the activities of a business entity helps in identifying the type of business license required.

In the state of New Jersey, issuance of licenses is coordinated under specific projects. In order to understand this, let us take a look at some examples:

• The Dairy, Juice, and Bottled Water Project is responsible for regulating wholesale business establishments that produce or process cheese, milk, bottled or bulk water, frozen desserts, and fruit or vegetable juice. The project enforces the Pasteurized Milk Ordinance (PMO), for determining implementation of good manufacturing practices. A business license in New Jersey is issued only after field visits to the establishment is satisfactory or in accordance to the plans laid out by the state.
  – Managed by: New Jersey Department of Health (NJDOH)
• The Retail Food Project is aimed at the food service and retail food industry. The enforcement of New Jersey’s retail food rules (NJAC 8:24-1, – Chapter 24: Sanitation in Retail Food Establishments and Food and Beverage Vending Machines) has to be followed in order to be issued a New Jersey company license. As a part of the project, inspection of food services is also inspected in all areas including at the NJ Transit Rail Stations, on the New Jersey Turnpike, and the New Jersey Sports & Exposition Authority.
  – Managed by: New Jersey Department of Health (NJDOH)

Step#2: Licenses issued by City/County

If your business or industry type doesn’t fall under a statewide license project then you will have to check with the local city or county office. A New Jersey company license can also be issued by local counties or cities in which the business is located. Let’s look at an example to understand how this works.

If you form a business in Atlantic City, NJ then a business license will be issued by the Office of the Licensing & Inspection Director, Licensing and Inspections Department of Atlantic City. The license or permits are issued for several types of businesses including Construction/building services, sale of any goods, coin-operated machines, events including flea market, casino hotels, fresh fruits and vegetables vending, and vending machines among others.

Sample Business License Application

It is important to understand that each city will have different license requirements, fee, and application procedures.

Step#3: Issuance of a Business License

How is a business license in New Jersey issued? You have to identify the following to complete the process:

1. The type of business or industry
2. Do you need a license or a permit?
3. Do you need a single license or multiple licenses?
4. Will it be issued by the state or the city?

Once you have identified the above, all you need to do is either download the application online or contact the concerned state department or city or clerk office. The validity of a business license is normally one year from the date of issue although different cities and counties have different dates. For instance, some licenses in Atlantic City, NJ expire on July 31 while some expire on October 31.

The fees for a license varies from city to city and you will have to check with the state or city licensing department to know the exact fees.

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