Should you form your corporation in New Jersey? We’ve collected the relevant information that will help you make this decision.
- Ideal location
- Qualified workforce
- Home to one of the top 20 metro areas in US
- Tax rate of 6.5-9%
- High property tax rates
- Competitive market
Cost of doing business
- $125 filing fee / $50 annual report
- Owners disclosed in original filing
Forming your corporation in New Jersey
In order to communicate to the public that your new business is incorporated, its official name will need to end with one of the following signifiers (or a relevant abbreviation): “incorporated”, “Company”, or “corporation.” In addition, it is required that the name of your business is not intentionally misleading to consumers, for any reason. Your company’s new name must also be completely unique, and not deceptively similar to any other organizations name or trademarks. There are also several restrictions on using terms common to amateur athletic organizations, financial institutions, and real estate agencies. Do a FREE name search now.
Board of directors requirements
You will need to form an official board of directors when incorporating in New Jersey. Here are the states explicit regulations regarding these directors:
- Required number of directors
New Jersey corporations must have at least one director listed in their incorporation documents.
- Age restrictions
Directors of corporations located in New Jersey must be at least 18 years old.
- Residence restrictions
There are no residence restrictions imposed on the directors of C corporations in New Jersey. However, S corporations are only allowed to have directors located in the United States.
- What information needs to be included in the Articles of Incorporation?
New Jersey does require the names or addresses of directors to be disclosed in incorporation documents.
Requirements for the Articles of Incorporation
The Articles of Incorporation is a document that must be filed during the incorporation process. Here is the information that must be included in this document when filing in New Jersey:
New Jersey requires the number of initial shares outstanding, and their par value, to be disclosed during the incorporation process. The number of outstanding shares does not affect initial state filing fees.
The state of New Jersey does not require officer information to be disclosed during the filing process.
Registered agent information
All New Jersey corporations must have a registered agent on file, and submit their name and address (which cannot be a PO box). This agent will be required to be accessible during standard business hours, and act as the state’s point of contact with the company. Learn more about registered agents.
Additional New Jersey filing requirements
Many states have steps in the incorporation process that are unique to that state. These can also vary at the municipality or county level as well. Here are the steps required throughout all of New Jersey:
Initial report deadlines
All corporations in New Jersey must file an initial report within six months of incorporating.
If your business is a professional practice
Professional service corporations are permitted to form under the professional corporation (PC) structure, which is also referred to as a professional association (PA).
Corporate record keeping requirements
Corporations in New Jersey are required to keep formal documentation of all major company decisions, financial documents, and shareholder information.
New Jersey Corporate taxation and fee requirements
There are several tax and fee requirements that must be addressed by corporations in New Jersey. They are as follows:
All states have complex taxation requirements. For more information regarding taxes in New Jersey, it is advised that you visit the state’s official business related website.
Annual report requirements
Corporations in New Jersey are required to file an annual report by the end of their anniversary month each year, which carries a $50 filing fee. Learn more about annual reports.
Tax identification numbers
New Jersey requires an EIN (employee identification number) for all corporations that will have employees, and most banks will require one to open accounts. New Jersey does not require corporations to obtain state tax ID numbers. Learn more about EINs.
Business license requirements
The business licenses and permits required in New Jersey vary wildly depending on the county or municipality in which your new corporation is located. If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers these topics. Learn more about business licenses and permits.
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