Starting a service business in New Jersey comes down to four things: picking a structure, registering with the state, getting licensed for your trade, and setting up a way to bill customers. Filing an LLC in NJ costs $125, ongoing reporting is $75/yr, sales tax is 6.625%, and personal income tax runs 1.4%–10.75%. Below is the full sequence, the fees you should budget for, the licenses most trades need, and the deadlines that catch new New Jersey owners off guard.
Most new registrations come out of Newark, Jersey City, Paterson and the rest of New Jersey — local business licenses are issued at the city or county level, so check yours after the state filing clears.
| Item | NJ cost |
|---|---|
| LLC / entity filing (one-time) | $125 |
| Annual / periodic report | $75/yr |
| Federal EIN (IRS) | Free |
| Sales tax registration | Typically free |
| Trade / professional license | Varies by trade |
| Local business license | Set by city / county |
Fees change — confirm current amounts with the NJ Secretary of State and the New Jersey Division of Taxation.
Choose your structure and file with the NJ Secretary of State ($125). Get your free EIN from the IRS the same day.
Register for New Jersey sales tax with the New Jersey Division of Taxation, then open a business bank account under the registered name.
Apply for your trade license and local business license. This is usually the longest step: NJ Certificate of Authority (sales tax); Professional license.
Get general liability insurance (and workers' comp before your first hire), then set up estimates and invoicing so you can bill the day you're cleared to work.
LLC Filing Fee
$125
Annual Report
$75/yr
Sales Tax
6.625%
Income Tax
1.4%–10.75%
Choose business structure
File with NJ Division of Revenue
Get EIN
Register for NJ taxes
Get local permits
Open business bank account
NJ has one of the highest top income tax rates at 10.75%
Annual reports are filed with your tax return
Higher taxes but strong consumer market. Top income tax rate is 10.75%.
Online LLC filings with the NJ Secretary of State are typically processed in a few business days, and an EIN from the IRS is issued immediately online. Trade licensing and local permits usually take longest — plan on two to six weeks before you're fully cleared to work, depending on your trade.
No — you can operate as a sole proprietor in New Jersey and still invoice customers legally. An LLC ($125 to file, $75/yr) separates your personal assets from business liability, which matters most once you're on customer property, hiring help, or signing contracts.
New Jersey sales tax is 6.625%. Materials and goods are commonly taxable, while labor treatment depends on the type of work, so bill parts and labor as separate lines and register with the New Jersey Division of Taxation before you start collecting.
Open a business bank account under the registered name, then invoice from a tool that applies NJ tax per line item and accepts cards. Glo Invoice sends invoices by text with a one-tap pay link, and Tap to Pay lets you charge on site before you leave the job.