New Jersey has a thriving business community. In particular, Hoboken, Secaucus, Princeton, and Newark are home to hundreds of new businesses each and every year, and it is likely that many of these business will have to work with a New Jersey tax attorney at some point in their company's life-cycle. Through Priori Legal's on-demand attorney marketplace, you can connect with vetted New Jersey tax lawyers quickly and efficiently.
How to Minimize Your New Jersey Corporate Tax Burden
Taxes can have a huge impact on any New Jersey company’s bottom line. Corporate tax planning with the help of a specialized New Jersey tax attorney can minimize your corporate tax burden. With the right financial and legal strategies, you can minimize your company’s annual taxes and even lower your long-term tax obligations.
New Jersey Business Taxes
All businesses will be obligated to pay some form of New Jersey taxes. If you have employees, you will need to file unemployment taxes and withholding taxes. If you are a corporation or another business treated as an individual tax entity, you may owe Corporation Business Tax on any income you have brought in. All receipts from the retail sale, rental, or use of tangible personal property or digital property are subject to a 7% NJ sales and use tax. Even certain services related to the creation and maintenance of such goods, as well as delivery, transportation, communications, personal grooming, and other services are subject to sales and use tax.
While New Jersey business taxes may not be among the most complex in the country, they are still difficult to file correctly for the average small business owner. A New Jersey tax lawyer can help minimize the burden of complying with all regulations put out by the New Jersey Department of Treasury and the Division of Taxation.
In addition to New Jersey business taxes, your company faces federal taxes. All corporations and other companies considered individual tax entities must pay federal income taxes at rates set according to how much money your company earned over the fiscal year. Every company with employees is expected to withhold social security taxes on behalf of the federal government. In fact almost every company must file some kind of return with the IRS. If you are not sure what your federal tax obligations are, it may help to speak with a New Jersey tax attorney.
Being Audited in New Jersey
Every company dreads being audited by the IRS and the New Jersey tax authorities. Even if you file your taxes flawlessly, your company may someday face a random audit—and you need to be prepared for that day. It is important to keep thorough records of every transaction, prepare tax forms diligently, and understand all your compliance obligations. Your accountant and tax lawyer can work together to prepare your company to deal with an audit if it ever comes your way—and minimize its impact when it does. Even if you are not currently facing an audit in New Jersey, it is best to be prepared ahead of time.
How do I know what taxes I owe in New Jersey and elsewhere?
You can check on the New Jersey Business Portal for information on whether or not your business is likely to owe New Jersey taxes. Of course, this information is not necessarily going to give you a complete picture of your tax obligations, which is why many businesses choose to consult a specialized New Jersey tax lawyer with such questions. Not only can your tax attorney help you understand what taxes face you in this state, but they can also help you figure out which states your company has an additional tax nexus in, which would create further tax obligations elsewhere.
How do I pay New Jersey taxes?
In New Jersey, every company must register for tax and employer purposes with the New Jersey Division of Revenue within 60 days of formation. To do this, you must fill out Form NJ-REG and get a Business Registration Certificate. On this certificate, you will find your Employer Identification Number (EIN) or Federal Tax Identification Number issued by the IRS, which you can use to file New Jersey taxes with the Division of Taxation.