It now costs a little bit less to start a business in New Jersey.
The Legislature passed over 100 bills in its last voting session, and while most attention was on the $60.7 billion state budget, a bipartisan bill to reduce business formation and related filing fees flew under the radar to Gov. Mikie Sherrill’s desk and was promptly signed into law.
The new law reduces formation and related filing fees by up to $25 across a range of business types and is expected to collectively save businesses millions of dollars a year. The change took effect on July 1 and is aimed at encouraging business growth and streamlining filing processes.
The legislation, A-5325/S-4534, was sponsored by Assemblyman Roy Freiman (D-16), Senator John Burzichelli (D-3), and Senator Carmen Amato (R-9).
"New Jersey should be encouraging entrepreneurs to invest and create jobs, not making it more expensive to get started," Senator Amato said after the bill was signed. "This law removes an unnecessary cost for businesses and is a step toward creating a more welcoming environment for employers and job creators."
Key Fee Reductions
- The fee to file a Certificate of Incorporation for a corporation drops from $125 to $100.
- Nonprofit corporations will now pay $50 instead of $75 for their original certificate.
- Limited partnerships and limited liability companies (LLCs) will also see their formation fees reduced from $125 to $100.
- Annual report fees for most business types are set at $75, while nonprofits pay $30.
Other filing fees, such as amendments, mergers, and dissolutions, have also been standardized or reduced, making the process more affordable and predictable for business owners.
The state Department of the Treasury estimated the changes will reduce state revenues by $4.1 million; a figure reflected in the Governor’s Fiscal Year 2027 budget. Proponents believe the long-term benefits of increased business activity will outweigh the short-term revenue loss from reduced business filing fees.
The bill passed both houses of the Legislature with bipartisan support. The Senate voted 40-0 in favor of the bill, and the Assembly voted 78-0 with one abstention on June 30. The governor signed the legislation into law a few hours later.
