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 domestic and foreign corporations and certain other corporate-type entities (such as business trusts, joint-stock companies, and some financial institutions) with nexus in New Jersey, including economic and digital-presence nexus.
Business entities that operate in New Jersey also face other compliance requirements:
New Jersey's Corporation Business Tax requires detailed financial information and is typically handled by an accountant through the Division of Taxation's filing channels.
Discern doesn't file New Jersey franchise taxes, but we can handle your foreign entity registration, file your annual reports, provide registered agent services, and track compliance deadlines across all your entities.
Ready to simplify your multi-state compliance? Book a demo to see how Discern streamlines entity management across all 50 states and DC.
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