Every business in NJ must file an annual report. This includes simply ensuring that your registered agent and address are up to date, and submitting a $75 filing fee.
The report is due on the last day of the month in the month in which you completed your business formation (LLC, Corporation etc). The responsibility to file falls on the business, even if you fail to receive any notification from the state. Failure to file can result in the revocation of your business.
Recent Regulations and Resources
State of New Jersey Taxes
Key dates and deadlines with the State of New Jersey will depend on your legal structure, if you collect sales tax, or if you have employees. There are three main types of taxes your business may need to file:
- Income Tax: These are taxes collected on your business’s net income and profits
- Sales and Use Tax: These are taxes paid for the sale of taxable goods and services
- Payroll Taxes and Wage Withholding: These are taxes held on your payroll (if you have employees)
- Specialty Taxes: These are taxes that are unique to certain services or industries
Tax Information Packet
A packet is available that includes the information needed to register your business with the New Jersey Division of Taxation. Descriptions of all state taxes are included. Employers can avoid future tax problems by knowing what the business tax responsibilities are and how to best meet them. For details or questions, call the Tax Hotline at 609-292-6400 or New Jersey’s Automated Tax Information System at 800-323-4400.
Sole proprietorship, general partnerships, and single member LLC's will file their business taxes with their personal taxes.
Multi-member LLC's need to file information on the partners gross-income tax.
The State’s tax rate is 9% based upon entire net income, or the portion of entire net income allocated to New Jersey.
Taxes for multi-state corporations are apportioned using a three-factor formula of sales, property and payroll. In New Jersey, this apportionment is weighted at 50:25:25. New Jersey allows corporations to carry forward losses from prior years. New Jersey has research and development credits capped at 50% of tax liability.
Find out more about New Jersey's corporate tax rates.
If selling taxable items or services in New Jersey, businesses are required to collect and remit a sales tax to the state. The sales tax rate is 6.625%. Reduced taxes (50% of the regular rate) may apply to transactions taking place within a Urban Enterprise Zone (UEZ) and involving a certified UEZ Business. Learn more about the New Jersey Sales and Use Tax and to find the current rates.
You must file a New Jersey Sales and Use Tax Quarterly Return with Form ST-50 every 3 months even if no tax was collected during that particular quarter (note: If you had no sales during the quarter, simply file the return with all zeros).
Some businesses will be required to make monthly payments for the first 2 months of the quarter (Form ST-51). This applies to you if your business:
- Collected more than $30,000 in Sales and Use Tax in New Jersey during the prior calendar year; and
- Collected more than $500 in the first and/or second month of the current calendar quarter.
You can file the quarterly return and make payments online. Failure to file the return and pay the tax by the due date (on or before the 20th day of the month after the end of the filing period) may result in the assessment of interest and/or penalty.
Certain production machinery and most packaging supplies are exempt from sales tax because of their intended use. You may use an Exempt Use Certificate (Form ST-4) when purchasing these items and pay no sales tax. Other common uses of the Exempt Use Certificate are listed on the back of the certificate.
NOTE: There are special exemption certificates for use by registered exempt organizations (FORM ST-5) and contractors doing work for exempt organizations (Form ST-13).
Payroll Taxes and Wage Withholding
If you have an employee that is a resident subject to New Jersey taxes, you need to pay payroll and wage withholding taxes. This is true even if your business is out of state. Read more about withholding taxes.
Note: Employers are not required to withhold New Jersey income tax from an employee who is a Pennsylvania resident if that employee completes a Certificate of Non-residency in New Jersey (Form NJ-165). For information about withholding Pennsylvania personal income tax, contact the Pennsylvania Department of Revenue Information Services Division at 717-783-1405.
There other unique taxes you may qualify for, you should have identified these when you registered for State taxes. There are dozens of unique taxes, a few examples:
- Admissions surcharge
- Cigarette tax
- Litter control fee
- Tobacco and vapor product tax
- Occupancy tax for hotels and motels
Premier Business Services
Premier Business Services (PBS) provides access to your tax records, and lets you make tax payments, request tax clearance certificates, and register as an Urban Enterprise Zone business. You can also give employees, payroll companies, or tax professionals limited access to PBS on your behalf.
To access PBS you must:
- Setup a myNewJersey account (myNewJersey is the State's secure login platform)
- Add a PBS account to your MyNewJersey account
- Add your business to your PBS account
To add a business to your PBS account, you must have registered for State taxes. You will need your:
- NJ Tax ID # (which is the same as your EIN and 3-digit location code)
- Business Name
- A PIN # (this was provided when you registered for State taxes)
- Chosen legal structure
- Year your business operations started in New Jersey
- Zip code (where you receive tax notices and forms)
New Jersey State Audits, Disagreements About Determinations or Bills
Read more about the NJ Taxpayers’ Bill of Rights including audits from the New Jersey Division of Taxation.
Key dates and deadlines with the US Internal Revenue Service (IRS) will depend on your business type, how your business is structured, and whether you have any employees.
For more information about your Federal tax responsibilities, find information about business taxes by the IRS.
City, Town, and County Taxes
Typically, cities or towns do not charge business taxes directly. Revenues for the city or town come from property taxes, which a business owner may be responsible for paying based on the property you own or lease within the municipality.
There may be fees associated with owning a business within a municipality, including fire protection or Mercantile Licenses. When planning, you should do your due diligence to identify local ordinances that may apply to your business. Contact your Municipal Clerk for additional information.
Payment In Lieu of Taxes/Long Term Property Tax Abatement
This abatement is negotiated in advance and requires the municipality to pass an ordinance authorizing the abatement. The property tax abatement is provided in the form of annual payments in Lieu of Taxes (PILOT) and the term is negotiated with the municipality.
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Though your specific business may require that you keep additional records, at a minimum, you will need to keep:
- State and Federal tax returns
- Requests for credit to vendors
- Loan requests to banks
- Balance sheets (a record of assets, liabilities, and capital)
- Income Statement (a summary of your earnings and expenses over a period of time)
A qualified accountant can advise you on taxes and the health of your business.
You may also need the following documents: