New Jersey lesson 5 of 6
New Jersey LLC taxes, licences and permits
New Jersey does not impose a separate LLC franchise tax, but it does tax pass-through income on resident members' personal returns, and multi-member LLCs taxed as partnerships can owe an additional filing fee.
Income tax on members
A single-member LLC is disregarded for tax purposes and a multi-member LLC is generally taxed as a partnership unless another election is made. New Jersey resident members pay the state's graduated personal income tax, which reaches 10.75 percent at the top bracket, on their share of pass-through income.
The partnership filing fee
New Jersey partnerships, which includes multi-member LLCs taxed as partnerships, with more than two owners and income or loss from New Jersey sources can owe a filing fee reported on the NJ-1065 or NJ-CBT-1065 return. The fee is subject to a statutory cap, so check the current instructions for the exact calculation for your ownership structure.
This filing fee is separate from, and in addition to, the $75 annual report paid to the Division of Revenue. They go to different parts of the state government.
Sales tax and licensing
If you sell taxable goods or services, register for New Jersey sales tax as part of the NJ-REG process. New Jersey does not issue a single statewide business licence covering all activity; industry licences and municipal permits are handled separately depending on what you do and where you operate.
Key takeaways
- New Jersey has no separate LLC franchise tax, but resident members pay personal income tax on pass-through income up to 10.75 percent.
- Multi-member LLCs with more than two owners may owe a partnership filing fee, capped by statute.
- Sales tax registration and any industry licences are handled through NJ-REG and local agencies.
Frequently asked questions
Does a single-member New Jersey LLC owe the partnership filing fee?
No. The partnership filing fee applies to partnerships, including multi-member LLCs taxed as partnerships, with more than two owners and New Jersey source income. A single-member LLC is disregarded and is not a partnership.
Is there a New Jersey franchise tax on LLCs?
Not on LLCs taxed as pass-throughs. If an LLC elects to be taxed as a corporation, the Corporation Business Tax applies instead.
Official sources
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Last reviewed: September 2026 - reviewed by Gullia Filing Legal & Formation Team