How much does it costto run an entity in New Jersey.
New Jersey taxes a registered entity at 9.0% on corporate income, adds a 2.5% surcharge, and charges $100 to register; Teamed's EOR skips all of it.
At a glance
New Jersey running costs at a glance
A New Jersey entity carries a 9.0% corporate income tax, a 2.5% additional surcharge on top of that, a franchise tax calculated on gross receipts, and a $100 fee to register the business itself. None of that touches a company using Teamed to employ people in the state instead.
- Corporate income tax
- 9.0%
- Franchise tax basis
- gross receipts
- Additional surcharge
- 2.5%
- Formation / registration fee
- $100
Tax load
What a New Jersey entity pays in tax
New Jersey charges corporate income tax at a flat rate of 9.0%, assessed through the CBT-100 return that every registered corporation files with the Division of Taxation.
On top of that base rate, the state layers an additional surcharge of 2.5%, known as the Corporate Transit Fee, which applies alongside the standard corporate income tax.
New Jersey also runs a franchise tax whose basis is gross receipts rather than net income, so the calculation sits apart from the income tax math and needs its own line in the books.
Setup and upkeep
Formation fee and the filings that follow
Registering a business entity in New Jersey costs $100, paid to the Division of Revenue when you get registered.
That fee is only the entry ticket. A live entity then owes recurring state filings, ongoing tax returns, and the internal bookkeeping to keep the corporate income tax, the surcharge, and the gross receipts franchise tax all reconciled correctly, year after year.
None of this is optional once the entity exists, and missing a filing deadline creates cleanup work that costs more than the original registration ever did.
The honest answer
When an EOR is the better call
An employer of record is sometimes the better answer, not a lesser one, especially for a small or still-changing headcount, or while you're testing whether New Jersey is even the right market for you.
Running your own entity makes sense once the tax filings, the $100 registration, and the ongoing compliance work cost less than what an EOR charges for the same headcount. Talk to a member of the team first to walk through your numbers, and use the crossover calculator second to see where that line actually sits for your business.
Your own entity
Your own entity, when it's time. We set it up, migrate you in, and hand it back intact.
Global Entity and Employment Operations, which we call GEMO, is how Teamed builds and hands over a real entity once an EOR no longer fits, across 100+ countries.
In New Jersey, that means we register the entity for the $100 fee, structure it against the 9.0% corporate income tax, the 2.5% surcharge, and the gross receipts franchise tax, and migrate your team in without a gap in their employment.
Before you commit
Sometimes an employer of record is the better fit
Running your own entity makes sense once the tax filings, the $100 registration, and the ongoing compliance work cost less than what an EOR charges for the same headcount. Talk to a member of the team first to walk through your numbers, and use the crossover calculator second to see where that line actually sits for your business.
Contractors, employer of record and your own entity all run on one platform at Teamed, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work rather than a ticket queue.
Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it on local salaries and employer costs rather than on a headcount rule of thumb.
Who carries it
Your own entity, when it's time. We set it up, migrate you in, and hand it back intact.
Global Entity and Employment Operations, which we call GEMO, is how Teamed forms your company, registers it for tax and payroll, runs it month to month and keeps its filings current, across 100+ countries. You stay the employer. We do the work behind it.
In New Jersey, that means we register the entity for the $100 fee, structure it against the 9.0% corporate income tax, the 2.5% surcharge, and the gross receipts franchise tax, and migrate your team in without a gap in their employment.
They set up our EU entity and moved hires across without missing a payroll.
Questions
New Jersey running costs, answered
What is the corporate income tax rate for a New Jersey entity?
New Jersey's corporate income tax rate is 9.0%, filed through the CBT-100 return with the Division of Taxation. Any entity registered in the state owes this on its income, separate from the additional surcharge and franchise tax.
Does New Jersey charge anything beyond the corporate income tax?
Yes. New Jersey adds an additional surcharge of 2.5%, called the Corporate Transit Fee, on top of the standard corporate income tax. It also runs a separate franchise tax based on gross receipts rather than income.
How much does it cost to register a business entity in New Jersey?
Registering a business entity in New Jersey costs $100, paid to the Division of Revenue as part of getting registered. That fee covers formation itself, not the ongoing tax filings that follow.
Is the New Jersey franchise tax the same as the corporate income tax?
No. The corporate income tax is assessed at 9.0%, while the franchise tax basis is gross receipts, a different calculation entirely. Both apply to a registered New Jersey entity and need to be tracked separately.
When does it make sense to set up a New Jersey entity instead of using an EOR?
It depends on your headcount, your salaries, and how long you intend to stay in the state, not a fixed number of employees. The crossover calculator gives you a concrete answer based on your own numbers rather than a rule of thumb.
Where these figures come from
Sources
These figures come from the New Jersey Division of Taxation's CBT-100 return instructions, the New Jersey Division of Taxation's Corporate Transit Fee guidance, and the New Jersey Division of Revenue's getting registered materials.
Looking for a job in Entity Running Costs And Filings yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.