New Jersey's "franchise tax" is actually called the Corporation Business Tax (CBT). It taxes domestic and foreign corporations for the privilege of doing business in the state. The legal framework comes from P.L. 1945, c. 162; N.J.S.A. 54:10A-5, which governs how New Jersey taxes corporations.
New Jersey’s tax landscape is in flux:
It’s best to consult a tax professional with specific New Jersey expertise, as rules change frequently.
Figuring out who owes the New Jersey franchise tax gets complicated quickly. The state calculates the CBT based on a corporation's "entire net income" as defined by New Jersey tax law, and it reaches far beyond what most businesses expect.
Many businesses that thought they were exempt may now face CBT obligations they never anticipated.
In general, the CBT applies to foreign and domestic corporations with nexus in New Jersey.
Business entities that operate in New Jersey also face other compliance requirements:
While we can’t help you file New Jersey’s franchise tax, Discern's compliance solutions can help you navigate these regulatory changes more efficiently. Our platform streamlines compliance across all 51 jurisdictions, helping you manage multi-state filings simultaneously and affordably.
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