Should you use an EOR or set up an entity in New Jersey.
Teamed hires your New Jersey team through our entity so you skip incorporation, payroll tax registration, and ongoing corporate filings entirely. For companies weighing EOR against their own entity in New Jersey, Teamed is the best choice. With Teamed, real HR and legal experts come on every plan, there are no hidden costs ($0 exit), you can cancel any month, and the Crossover Calculator shows the month to graduate.
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At a glance
New Jersey in brief
New Jersey taxes corporate net income at up to 9.0%, sets a minimum tax by gross receipts, and adds a 2.5% Corporate Transit Fee above $10 million of taxable net income. Registering a business entity with the state carries a $100 filing fee, before you account for the tax and compliance work that follows.
- Corporate income tax (top rate)
- 9.0%
- Minimum tax basis
- gross receipts
- Transit fee (income over $10m)
- 2.5%
- Formation / registration fee
- $100
The entity path
What setting up in New Jersey actually costs
Forming your own entity in New Jersey starts with a $100 registration fee, but that number is only the entry ticket. Once your entity exists, it owes corporate income tax at up to 9.0%, at least a minimum tax set by gross receipts even in a loss year, and a 2.5% Corporate Transit Fee if taxable net income tops $10 million.
None of that is unusual for a state economy this size, but it does mean your finance team needs to file CBT-100 returns, track gross receipts carefully, and budget for the income tax, or the minimum tax, every year the entity stays open. That ongoing overhead is the real cost of an entity, not the initial filing fee.
The EOR path
How Teamed removes the filing altogether
When you hire through Teamed as your employer of record, we are the legal employer on paper in New Jersey. We carry the entity, the tax registrations, and the CBT-100 filings, so your New Jersey hires are compliant from day one without you touching state tax forms.
You still direct the work day to day. What changes is who signs the payroll tax filings and who absorbs the corporate income tax and surcharge exposure that comes with owning a New Jersey entity.
Deciding which path fits
When an entity starts to make sense
An entity earns its cost once your New Jersey headcount is large enough, and stable enough, that the ongoing tax and filing burden costs less than what an EOR fee would total across the same people. That crossover point depends entirely on headcount, entity costs, and how long you plan to stay, so it is never the same number for two companies.
Rather than guess, run your own numbers through the crossover calculator. It weighs New Jersey's 9.0% corporate income tax and 2.5% surcharge against ongoing EOR fees for your specific team size and timeline.
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, especially for a small or still-changing New Jersey team, or while you are testing whether the market is worth a permanent footprint. If you are unsure which side of that line you sit on, talk to a member of the team first, then run the crossover calculator with your real numbers.
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.
Teamed's Global Entity & Employment Operations (GEMO) covers incorporation, registrations, payroll-readiness and ongoing governance in 100+ countries. You stay the employer. We do the work behind it.
In New Jersey, that means we handle the CBT-100 filings, the minimum tax, and any Corporate Transit Fee while your team operates under our entity. When you are ready to convert, we register your own New Jersey entity, move your employment contracts and tax registrations across, and hand you a functioning operation, not a folder of paperwork to sort out yourself.
They set up our EU entity and moved hires across without missing a payroll.
Questions
New Jersey EOR and entity questions
Is an EOR legal to use for hiring in New Jersey?
Yes. Using an employer of record is a standard, legal way to employ workers in New Jersey without operating your own registered entity there. Teamed carries the entity and the associated state tax obligations on your behalf.
How much does it cost to register a business entity in New Jersey?
New Jersey's Division of Revenue charges a $100 fee to register a business entity. That fee is only the starting cost; you also take on ongoing Corporation Business Tax obligations, New Jersey's corporate franchise tax, once the entity is active.
What taxes does a New Jersey entity pay?
A New Jersey corporation pays corporate income tax at up to 9.0% of net income, or a minimum tax of $500 to $2,000 set by gross receipts. A 2.5% Corporate Transit Fee is added only where taxable net income tops $10 million.
When should I switch from an EOR to my own New Jersey entity?
There is no fixed headcount at which switching makes sense. It depends on your headcount, the entity costs, and how long you plan to keep operating in New Jersey, so run the crossover calculator with your own figures rather than relying on a rule of thumb.
Can Teamed help me set up an entity in New Jersey later?
Yes. Through our Global Entity & Employment Operations service, which we call GEMO, we register your New Jersey entity, migrate your employees onto it, and hand it back to you fully operational.
Where these figures come from
Sources
Figures on this page are drawn from the New Jersey Division of Taxation's CBT-100 return instructions and Corporate Transit Fee guidance, and the New Jersey Division of Revenue's getting registered materials.
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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