NJ · Tax year 2026 · Last reviewed 2026-08-24
LLC vs S Corp in New Jersey: Tax Savings Calculator.
Compare federal payroll taxes, self-employment taxes, New Jersey ’s $75 annual fee and estimated S Corp savings in seconds.
At $100,000 net profit with a $50,000 W-2 salary, the federal payroll tax delta is $10,305. Adjusted for New Jersey's recurring cost, the estimated net modeled benefit (yr 1) is$9,030.
LLC Filing Fee
$100
one-time, New Jersey Secretary of State
NJ LLC Annual Report
$75
recurring, every year
S-Corp Recurring Cost
$7,575
$7,500 above the LLC rate
Estimated Net Modeled Benefit (yr 1)
$9,030
federal delta minus the annual fee
01 · New Jersey model
Tune the inputs. Numbers update live.
What does this mean? Your expected business profit for the year after business expenses but before the owner's salary.
The IRS requires "reasonable compensation" for S-Corp shareholder-employees. The salary is capped at your current net profit.
This is an illustrative assumption, not a tax or an IRS-required amount. Real overhead depends on your payroll provider, your CPA, and your state.
Per IRS Form 8959, these are added to your business income to determine whether the 0.9% Additional Medicare Tax applies.
Sets the Form 8959 threshold: $200K (single / HOH), $250K (MFJ), $125K (MFS).
New Jersey LLC recurring fee (deducted from savings)
$75
Recurring state filing/maintenance fee.
Defaults: $100K profit · $50K salary
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LLC
Federal payroll tax
$14,130
S-CORP
Federal payroll tax
$3,825
Federal Payroll / SE Tax Difference
$10,305
LLC SE tax minus the S-Corp's employer-side FICA on the owner salary. This is the federal payroll-tax piece only.
Estimated Net Modeled Benefit (yr 1)
$9,030
- Federal payroll-tax delta
- $10,305
- − New Jersey annual fee
- $10,230
- − Modeled S-Corp admin overhead
- $1,200
- = Estimated net modeled benefit
- $9,030
- − Approx. §199A W-2 drag
- $0
- = Net after QBI drag
- $9,030
Federal delta = the LLC's self-employment tax minus the S-Corp's employer-side payroll tax. The S-Corp employer-side figure ishalf of the standard 12.4% + 2.9% FICA on the salary; the 0.9% Additional Medicare Tax is entirely employee-side (no employer match) and is not included in the S-Corp employer-side comparison. The $100 filing fee is not included — it's a one-time setup cost. Income tax, QBI, health insurance, and retirement contributions are not modeled.
Estimate. Methodology & scope
ESTIMATE. The figures above estimate the federal payroll / self-employment tax difference between a Single-Member LLC (Schedule C / Schedule SE) and an S-Corp election, plus New Jersey's $75 LLC annual report and the $75 + $375 Corporation Business Tax minimum for an S-Corp at under $100K net income (total $450/yr for the S-Corp) and the one-time $100 New Jersey LLC filing fee (setup cost, not deducted from the year-1 net benefit). They do not include federal or New Jersey individual income tax (the state-income-tax flag is informational; the dollar amount is not modeled), the §199A QBI deduction (made permanent under the One Big Beautiful Bill Act, H.R. 1 / Public Law 119-21, signed July 4, 2025, with a 2026 phase-in range of $200K–$275K single / $400K–$550K MFJ), self-employed health insurance, retirement contributions, the half-of-SE-tax Schedule 1 adjustment, filing-status-specific deductions or credits, multi-state apportionment, reasonable-compensation enforcement, or other items that depend on your complete tax situation. The S-Corp administration overhead is a configurable illustrative assumption (defaulted to $1,200/yr), not a tax and not an IRS-required amount. Verify with a licensed CPA, EA, or tax attorney before acting.
02 · Why New Jersey specifically
The state-level numbers that move the answer.
An S-Corp election only pencils out when the federal payroll tax saved outpaces the recurring cost of running a corporate entity. New Jerseycharges $75per year to keep your entity in good standing and assesses ordinary state income tax on top of the federal figure.
At the calculator's default $100K / $50K inputs, the federal delta ($10,305) is what an LLC owner gives up in self-employment tax on net profit. After the New Jersey annual fee, the estimated net modeled benefit is$9,030.
State-specific note: New Jersey Certificate of Formation is $100 (NJ Treasury, Division of Revenue and Enterprise Services Registry Fee Schedule, last updated 07/01/2026). The $75 annual report fee is filed separately.
Localized formula — how this number was calculated
// New Jersey — same engine as the homepage
seBase = netProfit × 0.9235
ssPortion = min(seBase, 184_500) × 0.124
medicare = seBase × 0.029
addlMed = max(0, seBase + existingWages − 200_000) × 0.009
llcTax = ssPortion + medicare + addlMed
// S-Corp — employer-side payroll tax only
ssPortion = min(salary, 184_500) × 0.124
medicare = salary × 0.029
standard = ssPortion + medicare
addlMed = max(0, salary + existingWages − 200_000) × 0.009
// employee-side only — no employer match
scorpTax = standard / 2 // 50% of standard FICA — AddlMed excluded
// Net benefit
payrollDelta = llcTax − scorpTax
netOfFee = max(0, payrollDelta − 75)
savings = max(0, netOfFee − 1200) // $1,200 admin overhead- LLC filing: one-time $100 to form the entity in New Jersey.
- Annual franchise / report: $75/yr to maintain good standing.
- State income tax: applies on top of federal ordinary rates; not modeled.
03 · FAQ
LLC vs S Corp in New Jersey — frequently asked questions
Common questions about choosing between an LLC and S Corp in New Jersey, sourced from Google, Reddit, and Quora. The right answer depends on your income, reasonable compensation, and other factors — talk to a CPA for personal advice.
How much does it cost to form an LLC in New Jersey?
New Jersey charges a $100 filing fee to form an LLC. The annual report fee is $75/year. However, S-Corps in NJ also face the Corporation Business Tax (CBT) which can range from $375 to $1,500+ depending on income.
Does New Jersey have a state income tax?
Yes. New Jersey imposes a state individual income tax with rates ranging from 1.4% to 10.75%. NJ also has a complex Corporation Business Tax (CBT) structure for S-Corps.
Is an S Corp election worth it in New Jersey?
New Jersey is complex. The $75 annual report is modest, but S-Corps also owe the Corporation Business Tax (CBT) — the greater of an ENI-rate tax (6.5%–9%) or a gross-receipts minimum ($375–$1,500). At $100K net profit, the CBT alone can be $750+, which offsets much of the federal savings. Run the numbers carefully.
What is New Jersey's Corporation Business Tax (CBT)?
NJ S-Corps pay the Corporation Business Tax. Final liability is the greater of (A) the ENI-rate tax (6.5%–9%) or (B) the NJ gross-receipts-based minimum ($375–$1,500). This is in addition to the $75 annual report fee.
What is New Jersey's LLC annual report fee?
New Jersey charges a $75 annual report fee for LLCs. This is separate from the Certificate of Formation filing fee of $100.
04 · Compare against
Run the model against another state.
05 · Methodology