Small Business & Entity Tax • New Jersey (NJ)

New Jersey LLC vs. S-Corp Tax Savings & Filing Fee Calculator (2026)

Calculate exact 15.3% self-employment tax savings with an IRS Form 2553 S-Corporation election in New Jersey, factoring in the $125 NJ Articles of Organization fee and $75/yr report cost.

New Jersey LLC vs. S-Corp Tax Inputs
Gross revenue minus ordinary deductible business expenses.
New Jersey initial LLC filing fee: $125 | State income tax benchmark: 6.37%.
Estimated Annual Net Tax Savings (S-Corp)
$0 / yr
After payroll & NJ compliance costs
  • Standard Disregarded LLC SE Tax (15.3%): $0
  • S-Corp W-2 Reasonable Salary: $0
  • S-Corp Shareholder Distribution (0% SE Tax): $0
  • S-Corp Payroll Tax (15.3% on Salary Only): $0
  • New Jersey Initial Filing / Annual Fee: $125 / $75/yr
  • Est. New Jersey State Income Tax (6.37%): $0
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New Jersey (NJ) Regional Benchmarks & Statutory Notes

New Jersey Benchmark Metric 2026 Value Regional Context (Northeast)
Skilled Trade Labor Cost Multiplier 1.26x National Avg Avg contractor billing rate: ~$108/hr
4,000 PSI Ready-Mix Concrete Benchmark $188 / cubic yard Local frost footing depth: 36 inches
New Jersey LLC Filing & Annual Report Fee $125 initial / $75/yr Top state income tax benchmark: 6.37%
Residential Security Deposit Statutory Cap & Deadline 1.5x Rent / 30 Days High commercial density and strict 1.5-month security deposit interest-bearing account statutes.

Frequently Asked Questions: New Jersey LLC vs. S-Corp Tax & Filing Fee Calculator

How much does it cost to start and maintain an LLC in New Jersey?

In New Jersey (NJ), the initial Articles of Organization state filing fee is $125, and the ongoing annual report / franchise compliance fee is $75 per year. The benchmark top state income tax rate is 6.37%.

At what profit level does an S-Corp make sense in New Jersey?

Generally, once your net business profit exceeds $65,000–$80,000 per year in New Jersey, the 15.3% Medicare and Social Security tax savings on shareholder distributions outweigh the ~$600/yr payroll software cost and $75 annual state fee.

What is considered a reasonable S-Corp salary?

The IRS requires S-Corp owner-employees to pay themselves W-2 wages commensurate with market rates for the services performed (commonly 40%–55% of net profit for solo service businesses, depending on role and hours).

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