How to Incorporate in New Jersey

Many states go the extra mile to support businesses within the state, and New Jersey is no different with the various business assistance and tax credit programs that have been made available. Your NJ Corporation may be able to take advantage of these incentives, provided it meets the qualifying criteria.

For example, the Urban Enterprise Zone Program was created to help revitalize designated urban communities and stimulate their growth by encouraging businesses to develop, grow and create private sector jobs through public and private investment. Eligible businesses may be able to take advantage of investment tax credits, reduced sales tax collections on certain retail sales, and sale tax exemptions on qualified business purchases.

For many entrepreneurs looking to start a larger business, creating a New Jersey corporation may be the best choice. As a corporation, your business is able to buy and trade stock, and when it comes to excess profits, corporations offer more flexibility than an LLC. A corporation is allowed to pass income and losses to its shareholders, who report taxes on an individual tax return at ordinary levels.

It all depends on your goals. For smaller businesses, limited liability companies are usually a better option. An LLC would be easier to set up, and would receive many of the same benefits as corporations, with less regulation.

Learn more about forming a New Jersey LLC so you can decide which business entity is right for you.

It offers you numerous advantages including, but not limited to:

It offers several advantages similar to those provided by a C Corp including, but not limited to:

In this guide, you’ll find information on naming your corporation, getting a Registered Agent, the fees you’ll need to pay, business taxes and much more. We also cover how you'll interact with the New Jersey Treasury, Division of Revenue and Enterprise Services and what you'll need to register your corporation.

To help you along the way, use our Starting a Business checklist to keep track of everything you need to do to get your business up and running.

Step 1: Choose a Unique Business Name and Complete a State Corporation Search

Every New Jersey business must have a unique name that hasn't already been claimed by another business in the state. If you’re having difficulty coming up with a name, try using our Business Name Generator to gather ideas. You'll need to follow a few naming rules, which you can read about in detail on the New Jersey Corporation Names page.

Once you’ve chosen a name, you’ll need to make sure it’s available in New Jersey. To learn whether another company in the state is using your desired business name, use our tool to do a New Jersey entity search. You can also carry out a name search on the NJ Treasury, Division of Revenue and Enterprise Services website.

Step 2: Provide an Official Business Address for Your Corporation

Every New Jersey corporation must have a designated address. That could be your home address (if you’re running the company from your house), a building where your office is located or any physical address of your preference. The address can be outside the state of New Jersey and can be a P.O. Box.

You may also be able to use a virtual mailbox for your business address. Bizee can provide you with a New Jersey virtual mailbox where we'll receive your mail, scan it, and upload it for your online review. This can be especially convenient if you run a home-based business and don't want your home address published as part of your business public record.

Step 3: Assign a Registered Agent

Someone who receives official correspondence and is responsible for filing reports with the NJ Treasury, Division of Revenue and Enterprise Services is known as a Registered Agent. Every New Jersey corporation is required to have a Registered Agent.

You can fill this position yourself, assign another manager in your business or use a Registered Agent service. If your Registered Agent in New Jersey is a person, they must have a physical street address in New Jersey and must be present during business hours to receive important documents on behalf of your company.

You'll appoint your Registered Agent when you file your New Jersey Certificate of Formation to create your business, with the NJ Treasury, Division of Revenue and Enterprise Services.

All of Bizee’s business formation packages include Registered Agent service. It’s free for the first year and just $119 per year after that. You can also access a digital dashboard to view any document we've received on your behalf.

Step 4: File Your Certificate of Formation with the NJ Treasury, Division of Revenue and Enterprise Services

Once you've gathered all the information for your corporation, you’ll need to file your certificate online with the Treasury, Division of Revenue and Enterprise Services to formally create your NJ Corporation. This will officially create your business.

You will file your Certificate of Formation online via the state's digital portal, or Bizee can file it on your behalf. The New Jersey corporation filing fee is $75.

You only need to file your New Jersey Certificate of Formation once, but every year after, you'll also need to file an annual report online via the NJ digital portal. Bizee can remind you about this every year, or we can do it for you if you have us handle the paperwork.

Important: All new business entities in New Jersey are also required to register for employer and tax purposes by filing an NJ-REG form with the NJ Treasury. You can complete and file this form online via the New Jersey online business portal. For more information about filing this form, visit the state's website.

What are the fees and requirements to incorporate in New Jersey?

Annual Report

*All new business entities in New Jersey are required to file Form NJ-REG to be registered for tax and employer purposes. Filing Form NJ-REG ensures that the business is registered under the correct tax identification number and that it will receive the proper returns and notices. The NJ-REG, must be filed within 60 days of filing the new business entity, there is no fee for this filing.

Step 5: Get an Employer Identification Number (EIN) from the Internal Revenue Service

You'll need an EIN to identify your business to the IRS. You use this number when filing and paying taxes, when submitting payroll information and payments for your employees and for opening a business bank account. You can obtain one directly from the IRS, or Bizee can get one for you as part of the New Jersey corporation formation process.

Step 6: Write Bylaws

A set of rules that govern how a corporation will be run, bylaws detail how many directors the corporation will have, whether the board of directors will have annual meetings and what the voting requirements are, among other things.

Some states require companies to create bylaws - including New Jersey. While the state does require corporations to adopt bylaws, businesses aren't legally required to file them with the state - simply keep them filed at your primary place of business. Regardless of the legalities of your state, it's always a good idea to write and adopt bylaws to protect your business from any future changes and events.

New Jersey Corporation Types

C Corporation

When you file to start a corporation, by default, it's a C Corp. This is the choice for large businesses that will trade shares in the stock market.

A New Jersey C Corp will offer you several liability protections, but it will also be required to adhere to numerous strict rules and regulations. It will also likely have a substantial amount of administrative overhead and won't enjoy as many tax advantages as other corporation types.

Learn more about C Corporations.

S Corporation

Technically, an S Corporation isn't a business entity the way LLCs and C Corporations are. It's a tax filing status. An LLC or a C Corporation can be an S Corporation. It's just a matter of filing a form with the IRS.

The main reason to file as an S Corp is to save money on self-employment taxes. To get an idea of how much money you might save, use our S Corp Tax Calculator.

If you want your New Jersey C Corp to be treated as a New Jersey S Corp, file the IRS Election by a Small Business Corporation form, also known as Form 2553 or an S Corp Election form.

Consult with your tax advisor or accountant to determine whether this is your best option.

Learn more about S Corporations.

Compare S Corp vs. C Corp to learn the benefits and drawbacks of both, and decide which one will best suit your needs.

Professional Corporation

Some states — including New Jersey — allow certain occupations to form Professional Corporations. The state's code states as follows.

"...One or more persons, each of whom is duly licensed or otherwise legally authorized to render the same or closely allied professional service within this State, may organize and become a shareholder or shareholders of a professional corporation for pecuniary profit under the provisions of the Business Corporation Act of New Jersey (Title 14A, Corporations, General, of the New Jersey Statutes), for the sole and specific purpose of rendering such professional service..."

Check with the NJ Treasury, Division of Revenue and Enterprise Services to confirm whether your business should and can be a Professional Corporation.

Foreign Corporation

If your business operates in another state and you want to expand into New Jersey — or vice versa — you’ll need to form a Foreign Corporation.

Learn more about New Jersey Foreign Corporation registration.

Nonprofit Corporation

Charitable organizations can incorporate as nonprofit corporations. This means all the profits they generate are donated to the organization supported by the charity, minus administrative costs.

A nonprofit corporation is also exempt from federal and state taxes, allowing more of the profit to benefit the charity.

Note: Everything in this guide applies to for-profit corporations, and mostly to C Corps and S Corps. Items listed as requirements for forming a corporation may or may not also apply to nonprofits.

Limited Liability Company

Depending on the kind of business you want to form, or your personal circumstances and goals, an LLC may be a better option. For example, you may not need the options to buy and sell stock. Or you may simply want to start a small business with a few employees or even just yourself.

A New Jersey LLC is typically a better option for smaller businesses. It's easier to set up, but it still offers you certain advantages you'd get from a corporation. You can even have your LLC treated as an S Corporation for tax purposes to save you money.

Regardless of which direction you decide to go, Bizee can help you with your New Jersey business registration.

Learn more about limited liability companies.

Sole Proprietorship or Partnership

These are the simplest types of businesses to set up. That's because there's no real setup to do. If you don't choose to form a separate business entity, by default, you'll have either a sole proprietorship (just you) or a partnership (you and one or more other people).

Neither of these options provide you with any special benefits or liability protections and can leave your personal assets vulnerable. For these reasons, we don't recommend them.

Compare business entity types to decide which one is best for you.

Helpful Resources from the State of New Jersey

More Information in This Guide

You’ll find plenty more insight and guidance on the other pages of this guide, including: