New Jersey Small Business Statistics and Key Data for 2026

New Jersey's 1,051,630 small businesses employ nearly 1.9 million people and account for 99.7% of all businesses in the state. Whether you're researching the number of small businesses in New Jersey, tax rates, or industry breakdowns, here's what the 2026 data reveals.

How Many Small Businesses Are in New Jersey in 2026?

The total number of small businesses in New Jersey has grown by more than 143,000 since 2020. Here's where things stand based on the most recent SBA state profile for New Jersey.

• New Jersey has approximately 1,051,630 small businesses, up from 908,209 in the 2020 SBA profile.
• Small businesses represent 99.7% of all businesses in the state, according to 2022 Statistics of U.S. Businesses data summarized by the SBA Office of Advocacy.
• The state ranks 11th nationally in the number of small businesses, according to the New Jersey Business Action Center and the state's Office of Small Business Advocacy.
• New Jersey is the 4th smallest U.S. state by land area and the 11th most populous, with an estimated 9.5 million residents as of July 2024 (U.S. Census Bureau QuickFacts).
• Between the 2020 and 2025 SBA profiles, New Jersey added a net 143,400 small firms, reflecting sustained post-pandemic growth in business formation statewide.

New Jersey Small Business Employment and Workforce in 2026

Small firms drive nearly half of all private-sector jobs in New Jersey. Between March 2023 and March 2024, small businesses were responsible for 99.5% of the state's net job gains.

• Small businesses in New Jersey employ roughly 1.9 million workers, accounting for 48.8% of the state's private-sector workforce (SBA, 2022 SUSB data).
• Between March 2023 and March 2024, opening and expanding small establishments added about 397,458 jobs while contracting and closing ones lost around 358,827, for a net gain of 38,631 jobs statewide.
• Small businesses contributed a net increase of about 38,432 jobs during that same period, or 99.5% of total net job creation in New Jersey.
• Small firms accounted for about 33,317 establishment openings and 29,539 closings between March 2023 and March 2024, underscoring their central role in the state's economic churn.
• According to the SBA's 2020 profile (using 2018 ACS data), self-employed individuals at their own incorporated businesses in New Jersey had a median income of $57,770. Those running unincorporated businesses had a median income of about $32,743.

Top Industries for Small Businesses in New Jersey

New Jersey's small business landscape is concentrated in professional services, logistics, and real estate. The professional, scientific, and technical services sector alone accounts for more than 159,000 small firms.

• Professional, scientific, and technical services leads all industries with about 159,719 small firms, including roughly 133,007 nonemployer businesses and 26,712 small employer firms.
• Transportation and warehousing ranks second with approximately 147,052 small firms statewide, reflecting New Jersey's role as a logistics hub between New York and Philadelphia.
• Real estate, rental, and leasing accounts for about 123,490 small businesses, making it one of the top three sectors by small firm count.
• Retail trade follows with approximately 88,863 small firms across the state.
• Construction rounds out the top five with about 85,327 small businesses in New Jersey.

Health Care and Social Assistance Employment in New Jersey

The health care sector remains one of the largest employers among New Jersey's small businesses, even though other industries have more total firms.

• Small businesses in New Jersey's health care and social assistance sector employ about 298,217 people, representing roughly 48.6% of the sector's private-sector workforce.
• New Jersey's utilities sector is among the smallest for small businesses, with around 582 small firms (nonemployers plus employers with fewer than 500 employees) as of 2022.

Who Owns Small Businesses in New Jersey?

New Jersey has one of the most diverse small business ownership bases in the country. Women, minorities, and veterans collectively own hundreds of thousands of firms across the state.

• Women own about 369,988 businesses in New Jersey (331,000 without employees and 38,988 with employees), based on 2022 Annual Business Survey data compiled by the SBA.
• Hispanic-owned businesses number around 184,588 (169,000 without employees and 15,588 with employees), reflecting the growing role of Hispanic entrepreneurs statewide.
• Asian-owned firms account for about 137,538 businesses in New Jersey.
• Black or African American-owned businesses total about 124,213 firms.
• Veteran-owned businesses are estimated at about 26,127 (20,000 without employees and 6,127 with employees).
• Men own roughly 594,731 businesses in New Jersey, based on the same 2022 demographic data.

Nonemployer Firms and Single-Person Owned Companies in NJ

The majority of New Jersey's small businesses are run by a single person with no paid employees. These solo operations represent the backbone of the state's entrepreneurial activity.

• New Jersey has approximately 856,771 nonemployer businesses (firms with no paid employees other than the owner), alongside about 194,859 employer firms with fewer than 500 employees.
• Nonemployer firms represent roughly 81% of all small businesses in New Jersey, highlighting the scale of solo entrepreneurs and one-person companies in the state.

New Jersey Small Business Exports and Trade

Small businesses punch above their weight in international trade. Over 90% of New Jersey's exporting firms are small businesses, and they account for more than 40% of the state's total export value.

• In 2023, New Jersey had 19,049 identified exporting firms, of which 17,318 (about 90.9%) were small businesses with fewer than 500 employees.
• Those small business exporters shipped approximately $16.2 billion in goods in 2023, representing about 40.6% of the $40.1 billion in total identified exports from New Jersey.

New Business Applications and Startup Activity in New Jersey

The post-pandemic surge in business formation hasn't slowed down. Monthly new business applications in New Jersey remain roughly 42% higher than pre-COVID levels.

• In 2023, entrepreneurs filed approximately 160,996 new business applications in New Jersey, contributing to a national record of 5.49 million applications that year (U.S. Census Bureau Business Formation Statistics).
• The average monthly number of new business applications in New Jersey jumped from about 9,414 in 2019 to roughly 13,645 in 2021 and held at around 13,400 per month in 2023.
• Between March 2023 and March 2024, about 33,317 small business establishments opened while 29,539 closed, for a net gain of 3,778 establishments.

New Jersey Small Business Tax Rates and Costs in 2026

Operating a small business in New Jersey comes with specific tax obligations that differ from neighboring states. The combination of income tax, sales tax, property tax, and filing fees adds up quickly. For a detailed breakdown of New Jersey LLC fees and annual costs, see our dedicated cost guide.

• Corporations and LLCs must register with the New Jersey Division of Revenue and Enterprise Services; filing the Certificate of Formation for an LLC currently costs $125 in state fees.
• The annual report filing fee for New Jersey LLCs and corporations is $75, due each year by the last day of the entity's anniversary month.
• Most corporations subject to the Corporation Business Tax must pay a minimum tax ranging from $500 to $2,000 based on New Jersey gross receipts, rather than a single flat amount.
• For New Jersey residents subject to the Gross Income Tax (including many LLC owners), graduated rates start at 1.4% on taxable income up to $20,000 and rise in steps to 10.75% on taxable income over $1 million, with intermediate brackets including 6.37% and 8.97%.
• New Jersey does not label its main business levy as a “franchise tax,” but most corporations and many pass-through entities are subject to the Corporation Business Tax or the Pass-Through Business Alternative Income Tax.

For a step-by-step guide to forming an LLC in New Jersey, check our complete LLC formation walkthrough.

NJ Sales Tax vs Pennsylvania and New York

New Jersey's state-level sales tax rate is the highest of the three tri-state states, but the full picture is more nuanced once local surcharges are factored in.

• New Jersey levies a statewide Sales and Use Tax rate of 6.625%, compared with Pennsylvania's 6% state rate and New York's 4% state rate before local surcharges.
• Combined rates in many New York localities exceed New Jersey's single statewide rate once city and county add-ons are included.
• Certain Urban Enterprise Zones in New Jersey offer a reduced sales tax rate of 3.3125% for qualifying sales.

New Jersey Property Tax Rate: Highest in the Nation

New Jersey's property tax burden affects both homeowners and commercial landlords, and it remains the steepest in the country by a wide margin.

• New Jersey's statewide effective property tax rate is about 2.23% of home value (2023 data), the highest in the nation according to Tax Foundation analysis based on Census ACS data.
• Illinois follows at roughly 2.07%, and Connecticut comes in around 1.92%.

New Jersey LLC and Business Registration Requirements

New Jersey law requires specific steps for business formation and ongoing compliance. Every LLC and corporation operating in the state must maintain a registered agent and file annual reports.

• New Jersey law requires every domestic or foreign LLC and corporation to designate a registered agent with a physical street address in the state who is available during normal business hours. If you need help choosing one, see our guide to the best registered agent services in New Jersey.
• The Certificate of Formation filing fee for a New Jersey LLC is $125, payable to the Division of Revenue and Enterprise Services.
• All LLCs and corporations must file an annual report with a $75 filing fee, due by the last day of the entity's anniversary month.

For a side-by-side comparison of formation services, check the best New Jersey LLC services for small business owners.

What Entrepreneurs Ask About New Jersey Small Business in 2026

From the number of small businesses to tax rates and LLC costs, these are some of the most common questions from entrepreneurs looking at the New Jersey market.

How many small businesses are in New Jersey?

New Jersey has approximately 1,051,630 small businesses as of the latest SBA 2025 state profile, representing 99.7% of all businesses in the state. This number grew from 908,209 in 2020, a net increase of about 143,400 firms.

What percentage of New Jersey's workforce do small businesses employ?

Small businesses employ roughly 1.9 million workers in New Jersey, which is 48.8% of the state's private-sector workforce, based on 2022 Statistics of U.S. Businesses data.

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

Filing the Certificate of Formation costs $125. Add the $75 annual report fee, and most new LLC owners should budget at least $200 in state fees for year one, not counting registered agent services or other optional costs.

What is the sales tax rate in New Jersey compared to Pennsylvania?

New Jersey's statewide sales tax rate is 6.625%, while Pennsylvania's is 6%. New York's state rate is 4%, though local surcharges often push combined rates above New Jersey's single statewide rate in many NY localities.

What are the top industries for small businesses in New Jersey?

The five largest industries by number of small businesses are professional, scientific, and technical services (159,719 firms); transportation and warehousing (147,052); real estate (123,490); retail trade (88,863); and construction (85,327).

Sources

• U.S. Small Business Administration – New Jersey 2025 State Profile – Primary source for small business counts, employment, industry breakdown, exports, and owner demographics (2022 data).
• U.S. Census Bureau QuickFacts: New Jersey – Official population estimates and socioeconomic data for New Jersey (July 2024).
• New Jersey Division of Taxation – Sales and Use Tax Rates – Official source for NJ's 6.625% statewide sales tax rate and Urban Enterprise Zone rules.
• Tax Foundation via NJBIA – NJ Property Taxes Still Rank Highest – Analysis of effective property tax rates by state using 2023 ACS data.
• New Jersey Division of Revenue – Annual Report Portal – Official filing fees and deadlines for NJ LLC and corporate annual reports.
• U.S. Census Bureau – Business Formation Statistics by State – New business application data at the state level (2019-2023 trends).