Why 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.
Is an LLC Better Than a Corporation?
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.
Benefits of Forming a New Jersey C Corp
Benefits of Forming a New Jersey S Corp
It offers several advantages similar to those provided by a C Corp including, but not limited to:
- Options for creating, transferring and selling stock, though not as many as a C Corp
- The capacity for up to 100 shareholders
- Simpler rules than those applicable to C Corporations
- Easy transfer of ownership simply by selling your stock
- The possibility of saving money by allowing you to pay less self-employment tax
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.
Start a Business in New Jersey Checklist
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.
How to Form a New Jersey Corporation Yourself in 6 Steps
Step 1 - Choose a Unique Business Name and Complete a State Business Search
Step 2 - Provide an Official Business Address for Your Corporation
Step 3 - Assign a Registered Agent
Step 4 - File Your Certificate of Formation with the NJ Treasury, Division of Revenue and Enterprise Services
Step 5 - Get an Employer Identification Number (EIN) from the Internal Revenue Service
Step 6 - Write Your Bylaws
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.
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. Incfile 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.
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 Incfile’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.
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.
Here’s what is typically included:
- Your business name and type
- Registered Agent's name and address
- Names and addresses of directors
- The corporation’s capital structure (number of shares to be issued, who owns them, pricing, etc.)
- Your corporation's purpose, which is the New Jersey default "for any lawful business purpose or purposes" under New Jersey code
- The organizer's name and address
You will file your Certificate of Formation online via the state's digital portal, or Incfile 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. Incfile 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?
Last day of anniversary month of Incorporation.
*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.
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 Incfile can get one for you as part of the New Jersey corporation formation process.
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
Per New Jersey Code, Title 14A, § 14A:17-3, a few of the professions permitted to form a New Jersey Professional Corporation include, but may not be limited to:
- Certified public accountant
Check with the NJ Treasury, Division of Revenue and Enterprise Services to confirm whether your business should and can be a Professional Corporation.
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:
How to search the state business registry and find the right name. Includes information on naming rules, alternate names, reserving a corporation name and more.
How to appoint, change and search for Registered Agents. Also includes the duties they fulfill and the rules they’re required to follow.
Details the various fees you’ll need to pay, as well as the state and federal requirements you’ll need to meet. Includes details about Employer Identification Numbers (EINs), state and federal business licenses, annual reports and more.
Covers the various taxes you’ll have to pay to the state and federal governments. Includes details about state taxes such as income, sales and franchise, and federal taxes such as income and self-employment.