Northwest Registered Agent, LLC
  • Filing Services
    • Form an LLC
      File Articles of Organization
    • Incorporate
      File Articles of Incorporation
    • Form a Nonprofit
      File Nonprofit Articles
    • Stay Compliant
      File annual reports
    • Foreign Qualification
      Expand into another state
    Identity
    • Business Identity
      Get a website, email and more
    • Domain Name
      A URL for your website
    • Business Website
      No coding experience required
    • Business Email
      A professional email address
    • Phone Service
      A dedicated business line
    Registered Agent
    • Registered Agent Service
      Why you need a registered agent
    • Change Registered Agents
      We'll cover your fees
    • BOC-3 Process Agent
      A blanket agent for every state
    • National Registered Agent
      Bulk registered agent service
    Additional Services
    • Mail Forwarding
      A unique business address
    • Virtual Office
      Work from anywhere
    • Trademark Service
      With help from our attorneys
    • EIN Service
      Get a Federal Tax ID
    Explore All Services

    Not sure where to begin?

    Start from your Home state:

    AK
    ME
    VT
    NH
    WA
    ID
    MT
    ND
    MN
    WI
    MI
    NY
    MA
    CT
    RI
    OR
    NV
    WY
    SD
    IA
    IL
    IN
    OH
    PA
    NJ
    CA
    UT
    CO
    NE
    MO
    KY
    WV
    VA
    MD
    DE
    AZ
    NM
    KS
    AR
    TN
    NC
    SC
    DC
    OK
    LA
    MS
    AL
    GA
    HI
    TX
    FL
    PR
    GU
  • Get Started
    • Start a Business
      How to start from scratch
    • Small Business Ideas
      Brainstorming help
    • LLC vs. Corporation
      Weigh your options
    • Get a DBA Name
      Build your brand
    Keep it Running
    • Maintain a Business
      It won’t take care of itself
    • Certificate of Good Standing
      Proof your business is legit
    • Apostille
      For doing business overseas
    • Certified Copy
      Official copies of originals
    Business Docs
    • Legal Forms
      Every form you’ll ever need
    • LLC Operating Agreements
      Prepared by our attorneys
    • Single-Member LLC Operating Agreement
      For flying solo
    • LLC Bank Account Resolution
      To open a business bank account
    • Corporate Bylaws
      A template for every state
    • Certificate of Stock
      Shares for shareholders
    • Initial Board Meeting
      Minutes for your first meeting
    • Nonprofit Bylaws
      For nonprofits in every state
    Explore All Resources

    Not sure where to begin?

    Start from your Home state:

    AK
    ME
    VT
    NH
    WA
    ID
    MT
    ND
    MN
    WI
    MI
    NY
    MA
    CT
    RI
    OR
    NV
    WY
    SD
    IA
    IL
    IN
    OH
    PA
    NJ
    CA
    UT
    CO
    NE
    MO
    KY
    WV
    VA
    MD
    DE
    AZ
    NM
    KS
    AR
    TN
    NC
    SC
    DC
    OK
    LA
    MS
    AL
    GA
    HI
    TX
    FL
    PR
    GU
  • Who We Are
    • Corporate Guides
      Meet the humans who work here
    • Our Manifesto
      We're Just Not Annoying
    • Privacy by Default
      How we protect your privacy
    • Live Privately with an LLC
      Guard your personal data
    What We're Up To
    • Client Profiles
      Real life success stories
    • Client Reviews
      What real people say about us
    • Blog
      Answers to real client questions
    • Press Releases
      Extra extra, read all about it
    Get in Touch
    • Become an Affiliate
      For marketers and B2B providers
    • Contact Us
      Drop us a line
    • Careers
      Come work with us
    • Life at Northwest
      Learn about our company culture
    Site Directory

    Not sure where to begin?

    Start from your Home state:

    AK
    ME
    VT
    NH
    WA
    ID
    MT
    ND
    MN
    WI
    MI
    NY
    MA
    CT
    RI
    OR
    NV
    WY
    SD
    IA
    IL
    IN
    OH
    PA
    NJ
    CA
    UT
    CO
    NE
    MO
    KY
    WV
    VA
    MD
    DE
    AZ
    NM
    KS
    AR
    TN
    NC
    SC
    DC
    OK
    LA
    MS
    AL
    GA
    HI
    TX
    FL
    PR
    GU
  • Login
  • Hire Us

Home / Start an LLC / New Jersey LLC / New Jersey LLC Taxes

New Jersey LLC Taxes

New Jersey’s high taxes can be daunting for business owners. Thankfully New Jersey LLC members have it a little easier than owners of other business types, due to the pass-through tax status LLCs enjoy by default. A flat $150 per partner filing fee for partnership taxes doesn't hurt either. However, members are subject to personal income tax at the state and federal level, and your LLC may also be liable for other taxes based on industry or workforce, as well as city or county taxes at the local level.


In this article, we'll cover:

  1. How Are New Jersey LLCs Taxed?
  2. New Jersey State Income Tax
  3. Sales and Use Tax
  4. Local New Jersey Taxes
  5. Other Taxes in New Jersey
  6. Do foreign LLCs in New Jersey need to pay New Jersey taxes?
RA-image

How Are New Jersey LLCs Taxed?

The default federal tax status for your New Jersey LLC depends on its number of member owners. A single-member LLC (SMLLC) is normally taxed as a disregarded entity like a sole proprietor, and a multi-member LLC is taxed as a general partnership. These default statuses are pass-through taxes at the federal level: revenue is distributed to members and filed on their personal income tax at the 15.3% federal self-employment tax rate (12.4% for Social Security and 2.9% for Medicare), while the LLC itself pays no federal corporate income tax.

LLCs with default tax status file federal taxes with these forms:

  • Single-member LLC—Form 1040 (usually Schedule C, but some SMLLCs file C-EZ, E, or F)
  • Multi-member LLC—Form 1065

However, LLCs are not restricted to default tax classification—you can also choose to adopt S-corp or C-corp tax status for your LLC. Here’s how that choice affects your LLC’s taxes:

New Jersey LLCs taxed as S-corp

S-corp status is useful for certain LLCs—S-corps do not pay corporate income tax, and can make member distributions exempt from the 15.3% federal self-employment tax.

Your LLC can file for S-corp status with IRS Form 2553. Check the IRS S-corp requirements to make sure your LLC qualifies, as only US-originating companies within certain limits on shareholders and stock can become S-corps. S-corp tax returns (through IRS Form 1120-S) are also more complex than returns for default status. We recommend discussing the change with a CPA before electing S-corp status—since not all LLCs will save money as S-corps.

LLCs taxed as C-corp

It’s fairly uncommon, but some LLCs elect to be taxed as C-corps, which is the default tax status of corporations. C-corps suffer from “double-taxation,” paying 21% corporate income tax while shareholders are taxed on dividends. But LLCs looking for more investment and funding opportunities get access to a wider range of tax breaks through C-corps status than default LLCs or S-corps, and tend also to be more appealing to investors.

As when considering a S-corp, we recommend speaking to a CPA to see if your LLC will benefit from a change to C-corp status. C-corps report their income with IRS Form 1120.

New Jersey State Income Tax

Under default status filing as a partnership, LLC members report their income on personal income tax returns, and pay taxes on the income that passed to them through from the LLC at rates ranging from 1.4% to 10.75%.

However, LLCs with more than two members must pay a $150 partnership filing fee for each member—up to a $250,000 maximum. For LLCs with a member residing outside New Jersey, payment must be made on their share of New Jersey income—9% for nonresident partners that are part of a corporate structure, and 6.37% for non-corporate partners.

LLCs with S-corp status must pay a state Corporate Business Tax based on gross receipts: starting at 7.5% for a minimum of $375 for less than $100,000 in receipts, up to $1,500 at for receipts of $1,000,000 or more. C-Corps must also pay state Corporate Business Tax at slightly higher rates, starting at $375 for gross receipts starting at under $100,000, up to $1,500 for a million or more.

In addition, New Jersey LLCs and other pass-through businesses can elect to choose Pass-Through Business Alternative Income Tax as an another option. Under this election, members and partners of a pass-through company can have the LLC pay the Pass Through Business Alternative Income Tax on their share of distributions, then claim a refundable tax credit on their own returns.

Sales and Use Tax

New Jersey charges a statewide sales and tax of 6.625%. Unlike many other states, cities and counties can not add additional sales taxes on top of the state rate. You’ll need to register your LLC with the Division of Revenue and Enterprise Services to legally collect sales tax—registration carries a $125 fee for LLCs and other for-profit businesses, and you will need to display your Certificate of Authority for Sales Tax at your business location.

Local New Jersey Taxes

Some cities and counties in New Jersey impose taxes of their own on businesses, such as 1% payroll taxes in Jersey City and Newark. Alternatively, special taxes can be imposed on an area by the state government, like in the case of the 9% Atlantic City Luxury Tax on certain beverages, entertainment and room rentals. You will need to pay any local taxes applicable to your LLC in its home location, and in any other cities or counties where it conducts business.

Other Taxes in New Jersey

Here are some other taxes that are imposed by the state of New Jersey.

New Jersey State Employer Taxes

New Jersey employers must pay unemployment insurance and workers’ compensation taxes:

  • Unemployment Insurance (UI) Tax—Employers are taxed up to a base wage of $41,100 for every employee (wages over that threshold are not taxed). For roughly the first three years that an employer is subject to the law, the unemployment tax rate is currently 2.8%. Afterwards, a rate between 0.6% and 6.4% will be assigned to the employer by the New Jersey Department of Labor and Workforce Development—Division of Employer Accounts every year. The rate is calculated based on the amount of unemployment taxes paid by (and unemployment benefits charged to) the employer, and their average taxable payroll.
  • Workers’ Compensation—New Jersey employers are required to purchase workers’ comp insurance for all employees. Rates differ based on claim history and the risk involved in the work your employees do, but New Jersey’s estimated average rate is $1.45 per $100 of payroll.

To learn more about New Jersey employer taxes, visit the New Jersey Division of Taxation Employer Payroll Tax website.

Industry Taxes

The New Jersey Division of Taxation also issues taxes on certain industries and regulated substances in the state, including:

  • Alcoholic Beverages
  • Cannabis
  • Cigarettes
  • Hotel/Motel Occupancy
  • Litter Control Fees
  • Motor Fuels
  • Petroleum Products Gross Receipts
  • Realty Transfers
  • Recycling
  • Sanitary Landfills
  • Tobacco and Vapor Products

Do foreign LLCs in New Jersey need to pay New Jersey taxes?

Yes. If you have an New Jersey foreign LLC (an LLC doing business in New Jersey formed outside the state) you still need to pay all applicable New Jersey taxes as domestic LLCs do, including local-level city and county taxes.

Related Articles

A red, white and blue name tag labeled

Start a New Jersey LLC

Our guide to starting an LLC in New Jersey.

A stack of documents showing the dark blue silhouette of a brick and mortar store with a white dollar sign, all positioned above three gold coins.

New Jersey LLC Cost

Discover all the costs associated with starting an LLC in New Jersey.

A blue shredder shredding a piece of paper with the text

Dissolve a New Jersey LLC

Sometimes things don't work out. Learn how to dissolve an LLC in New Jersey.

A heart monitor connected to a red heart shape with the text

Reinstate a New Jersey LLC

Ready to try again? Learn how to reinstate your New Jersey LLC and get back to business.

A white form with

How to File LLC Taxes

Your guide to understanding LLC taxes.

An open gray envelope with a document stamped

New Jersey Annual Report

A complete guide to filing the New Jersey Annual Report.

  1. Start a New Jersey LLC
  2. New Jersey LLC Cost
  3. Dissolve a New Jersey LLC
  4. Reinstate a New Jersey LLC
  5. How to File LLC Taxes
  6. New Jersey Annual Report

Northwest Registered Agent, LLC

Northwest Registered Agent ®

We’re Just Not Annoying ®

509-768-2249


1998 – 2023 Copyright © Northwest Registered Agent, LLC. All Rights Reserved

Privacy Policy | Terms of Service

We store the cookies our website needs to function, and we never sell data to third parties. To learn more, see our Privacy Policy or read about Privacy by Default®.