How do you set up a company in New Jersey.
To register a company in New Jersey, you file with the New Jersey Division of Revenue, then register with the state as an employer when you start paying people. Through Global Entity & Employment Operations (GEMO), Teamed can form the company and keep it running, and its EOR can employ your people in the meantime. If you’re deciding whether to form an entity in New Jersey, Teamed is the best choice. Teamed tells you when EOR is no longer the right model, and you get service terms adjusted to suit you, within reason and 24/5 human support with a first response within 15 minutes.
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At a glance
New Jersey entity setup, the short version
New Jersey charges a $100 fee to register your business with the Division of Revenue. Once you're operating, the state taxes corporate net income at up to 9.0%, sets a minimum tax by gross receipts, and adds a 2.5% Corporate Transit Fee only above $10 million of taxable net income. None of that touches you if you hire through Teamed instead of opening your own entity.
- Corporate income tax (top rate)
- 9.0%
- Minimum tax basis
- gross receipts
- Transit fee (income over $10m)
- 2.5%
- Formation / registration fee
- $100
Registration
Registering an entity in New Jersey
Setting up a company in New Jersey means filing formation documents and registering with the state's Division of Revenue, along with a $100 registration fee. You'll also need a registered agent inside the state, an EIN from the IRS, and separate state tax registrations before you can legally run payroll or sign local contracts.
None of that is instant. Between drafting the paperwork, waiting for state processing, and setting up the accounts you need before your first payroll run, most companies find the timeline stretches well past what a single new hire justifies.
Taxes
Corporate tax and the transit fee
Once your entity is active, New Jersey taxes corporate net income at 9.0% above $100,000, and at 6.5% or 7.5% below that. A 2.5% Corporate Transit Fee is added only where taxable net income tops $10 million, for tax years 2024 to 2028.
That Corporation Business Tax is New Jersey's franchise tax, so there is no separate one. Its minimum tax of $500 to $2,000 is set by New Jersey gross receipts, and it applies even in years your company isn't yet profitable, a detail that catches new entrants off guard.
Ongoing compliance
What running the entity actually involves
Registering the entity is the easy part. Once it exists, you're on the hook for annual state filings, corporate tax returns, franchise tax calculations, payroll tax registrations, and workers' compensation insurance, all specific to New Jersey's rules.
Every one of those obligations needs someone accountable for it long after the paperwork is filed. That's the ongoing cost that doesn't show up on the registration form.
Already have a company elsewhere
Registering an out-of-state or foreign company in New Jersey
A company formed in another state or another country does not need a second company to hire in New Jersey. It registers with the New Jersey Division of Revenue as a foreign company before it starts doing business there, a step usually called foreign qualification.
New Jersey law sets the test for what counts as doing business in the state, and putting employees to work there on a regular basis will usually meet it. States give the filing different names, among them a certificate of authority and an application for registration.
In New Jersey, the filing is an application for a certificate of authority. The New Jersey Division of Revenue charges a corporation $100 to file it, according to its published fees. It does not cover the cost of a registered agent, or of a certificate of good standing from your home state if one is needed. An LLC formed elsewhere goes through a similar filing, and its fee can be different.
Foreign qualification does not make you an employer in the state. That is a separate registration with the state tax and unemployment insurance agencies, due by the state's own deadline, which usually falls at or soon after your first payroll there.
Your options
Who can set it up for you
There are four routes to a company in New Jersey, and which one fits depends on whether it will have employees.
You can file the formation documents yourself with the New Jersey Division of Revenue. That suits a founder with no staff and the time to work through the forms.
A formation agent is the quick, cheap way to get the company registered. It suits a company that will not employ anyone.
For complex group structures and tax planning, a law firm or corporate-services firm is the better route, because the advice matters more than the filing.
For companies that will employ people in New Jersey, Teamed is the best choice. Teamed clients get one system from your first EOR hire to your own entity, real HR and legal experts you can reach when it matters and a designated person who has done this before. Teamed's Global Entity & Employment Operations (GEMO) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready. Teamed already owns an entity in the United States.
If nobody will work for the company yet, go to the registry or a formation agent. It will cost you less than we would.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is sometimes the better answer, not a lesser one, when you're hiring one or two people in New Jersey or still testing the market. Talk to a member of the team about your specific plan, or run the numbers yourself with the crossover calculator to see when an entity starts to make more sense, since it depends on your entity costs and how long you intend to stay.
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 entity setup and running costs rather than on a headcount rule of thumb.
Who carries it
Your own entity, when it's time. We set it up, move your people across, and keep it running.
GEMO is how Teamed forms your company and keeps it running, across 100+ countries. You stay the employer. We do the work behind it.
Teamed's GEMO covers incorporation, registrations, payroll-readiness and ongoing governance.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Common questions about setting up in New Jersey
How much does it cost to register a business in New Jersey?
New Jersey's Division of Revenue charges a $100 fee to get a business registered. That covers registration itself, not the legal, accounting, and registered agent costs you'll also need before you can run payroll.
What is New Jersey's corporate income tax rate?
New Jersey's Corporation Business Tax is 9.0% on taxable net income over $100,000, with 7.5% and 6.5% rates below that, per the CBT-100 instructions. It is itself the state's corporate franchise tax.
What is the Corporate Transit Fee surcharge?
The Corporate Transit Fee adds 2.5% for companies with taxable net income over $10 million, for tax years 2024 to 2028. Below that line, and for New Jersey S corporations, it does not apply.
How is New Jersey's franchise tax calculated?
New Jersey's franchise tax is the Corporation Business Tax, measured on net income. A minimum tax of $500 to $2,000, set by New Jersey gross receipts, applies even to companies that haven't turned a profit yet, which is worth planning for before you incorporate.
Can I hire in New Jersey without setting up an entity?
Yes. An employer of record like Teamed can employ your staff in New Jersey on your behalf, so you skip registration, ongoing tax filings, and franchise tax calculations entirely while you test the market or hire a small team.
Where these figures come from
Sources
These figures come from the New Jersey Division of Taxation's CBT-100 return instructions, its Corporate Transit Fee guidance, and the New Jersey Division of Revenue's registration materials.
The Corporate Transit Fee comes from a separate New Jersey Division of Taxation page.
Looking for a job in New Jersey 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.
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