When you’re incorporating a new business in New Jersey, it will be subject to a wide array of taxes that need to be completed at all cost. This is because tax obligations are a part of the requirement for compliance as a legally operating business entity (LLC, Corporation, DBA, etc.) in the state.
Because there are several taxes that need taking care of, understanding each different type is tantamount to completing each requirement. As well, keeping business records in an organized fashion helps you comply with New Jersey business tax deliverables much easier.
In addition, this guide on New Jersey business taxes enumerates the various taxation types that may apply to your small business.
The New Jersey Business Income Tax is imposed through the Corporate Business Tax (CBT). In addition to this, when income from your business personally passes through you, this is also taxable through your personal tax return.
However, aside from these two, there is no privilege tax or franchise tax in the state of New Jersey. For more information on the Corporate Business Tax rates for various organizations in New Jersey, check the New Jersey Department of Taxation.
When it comes to the compliance of business taxes, it is imperative that you get everything right at the onset of the process.
That is, all paperwork and every single report necessary to complete the task should be taken care of, including any updates communicated by the governing agency, as well as the right forms to be used. For a reliable source of all New Jersey Tax Forms and Publications, always refer to the New Jersey Department of Taxation.
The New Jersey Unemployment Insurance Tax is a tax type applicable to a majority of New Jersey businesses especially those who have employees.
An Unemployment Insurance Tax is a stipend that is temporarily provided to the unemployed workforce of the state while they are looking into other working opportunities. This is provided to unemployed workers who have been laid off, but at no fault of their own.
Both the New Jersey Sales and Use Tax are in effect. The Use Tax complements Sales Tax in that in the event that the Sales Tax is not imposed or it is collected, but at a rate that is less than the Sales Tax of New Jersey, the Use Tax is.
The rate for both Sales Tax and Use Tax is at 7%. In addition to this, local Sales Tax may also be collected on certain items sold. However, there are several goods exempted from Sales Tax and these include unprepared food, medicine, clothing, and household paper products. In addition, there is also no Sales Tax for resale goods as well as gasoline.
Just as there are powerful tools that can be used to accomplish tasks easier when starting a business, there are also powerful tools that can be used to complete the necessary requirements for New Jersey business taxes.
These tools not only help you comply with requirements for the short duration, but these can also be used for the continuous compliance of your tax deliverables.
While there are accounting tools designed for large organizations, there are also those for small businesses. Small business accounting software tools are designed for smaller businesses with size-specific requirements when it comes to accounting and business transactions.
Xero, FreshBooks, and QuickBooks are some of the common small business accounting software that are commonly used in a majority of small businesses today. These software options have different sets of features that help entrepreneurs run a small business efficiently.
From automating accounting tasks to expense and finance tracking tools to bank reconciliation features to automatic report generation; all of these small business accounting applications have a specific advantage that can perfectly suit your specific business requirements.
Note that this guide should not be taken as tax advice or a legal document for its only purpose is to provide general information on New Jersey business taxes. For expert advice on New Jersey business taxes or for starting a new business, consult an accountant or a business lawyer.