How Much Does a Business License Cost in New Jersey?

Launching a business in New Jersey can be an exciting leap. Before you hang your sign or build your website, there’s an important question that you need to answer:

What does a business license cost, and what license(s) do I need for my specific industry?

In New Jersey, understanding the state’s business license requirements is a must if you want to stay compliant and avoid costly delays before your launch.

A New Jersey business license is not a one-size-fits-all “general business license” in the state. Instead, licensing depends on your business type, location, and industry. Some entrepreneurs may require multiple licenses (state, county, municipal), while others may only need to register with the state. 

In this post, we’ll break down everything you need to know about business licenses in New Jersey. This includes who needs one, what they cost as of 2025, and how to renew them. We’ll also explore the unique quirks of New Jersey’s licensing system so you can get started with confidence.

Do you need a business license in New Jersey?

Unlike some states that issue a blanket general business license, New Jersey takes a more decentralized approach. Whether you need a business license depends on your industry, location, and business structure. 

Most businesses in New Jersey are required to register with the Division of Revenue and Enterprise Services (DORES). This is done to obtain a New Jersey Business Registration Certificate (BRC). It’s a prerequisite for tax compliance and contracting with public entities. The certificate is not a “license” in the traditional sense.

Licensing requirements vary a great deal by municipality and industry. For example, restaurants, salons, daycare centers, and contractors typically need additional permits and licenses from state agencies or local governments.

Some professions require state-issued occupational licenses. These would include real estate agents, accountants, and healthcare providers.

A unique feature of New Jersey’s business licensing system is its layered structure. You may need approvals at different government levels. This is especially true if you’re in a regulated industry. Some towns in New Jersey require local mercantile or vendor licenses, even for home-based businesses.

Bottom Line: There’s no universal license, but most businesses will need to register and may require one or more licenses depending on what they do and where they operate. 

How much does a business license cost in New Jersey?

As mentioned, there’s no statewide general business license required in New Jersey. You will most likely have to register your business with DORES to obtain your BRC. There are costs associated with that, which vary based on business structure:

• LLC or Corporation formation: $125 filing fee
• Sole proprietorship or general partnership: Free to register, but may incur local licensing fees

Beyond registration, licensing costs depend heavily on your business type and location. State-issued licenses for regulated industries, such as food service or construction, can range from $50 to $500 or more. It depends on business complexity and oversight. 

Local municipalities may also require separate licenses, such as a mercantile license. These typically cost between $50 and $200 annually. 

Several factors will influence your overall licensing costs:

• City vs. County: Urban areas like Newark or Jersey City may have higher fees than smaller towns
• Business Structure: Corporations and LLCs often face more filing requirements than sole proprietors
• Industry: Regulated professions require specialized licenses

Keep in mind that many business licenses in New Jersey must be renewed annually. These often include separate renewal fees. If you don’t renew your license on time, it could result in penalties or suspension of your business operations.

If you’re still in the early stages of starting a business in New Jersey, consider these costs part of your startup budget so you can plan ahead and stay compliant from day one.

Types of business licenses in New Jersey and their cost

Here’s how that layered business licensing structure looks in New Jersey.

City business licenses

Many municipalities in New Jersey require a local business license, often called a mercantile license. These are usually issued by a city clerk or local government office. Costs vary by city and business type:

• Retail shop in Newark: ~$100 annually
• Home-based business in Paterson: ~$50–$100
• Food truck in Jersey City: ~$150–$250, plus health inspection fees

County business licenses

County-level business licenses are less common in New Jersey. They may, however, apply to businesses involved in health services, waste management, or construction. The fees can vary quite a bit:

• Health permit in Camden County: ~$100–$300
• Contractor license in Bergen County: ~$75–$200

State-level permits and licenses

New Jersey requires specific licenses for regulated professions and industries. These are issued by various state boards and departments:

• Seller’s Permit (Sales Tax Certificate): Free via the Division of Taxation
• Cosmetology License: ~$60 application + ~$60 annual renewal
• Liquor License: Can range from $500 to over $2,000, depending on type and location
• Childcare Center License: ~$250-$500, plus inspection and compliance costs

You can search for industry-specific licenses on the Business.NJ.gov Licensing Guide.

Federal licenses (if applicable)

Most small businesses aren’t going to require any sort of federal license. However, if your business involves firearms, aviation, broadcasting, or interstate transportation, you’ll need to apply through the appropriate federal agency. Examples would include the ATF for anything involving firearms, or the FAA if your business offers aviation services.

Sample license fees for New Jersey businesses

Business Type	License Type	Issuing Level	Estimated Cost
Retail store	Mercantile License	City	$100/year
Restaurant	Health Permit + Mercantile	City + County	$250–$500/year
Landscaping Contractor	Contractor License	County	$75–$200/year
Hair Salon	Cosmetology License	State	$60 + renewal fees
Online Seller	Sales Tax Certificate (NJ-REG)	State	Free
Brewery	Liquor License	State	$1,000–$2,500/year
Childcare Center	Facility License	State	$250–$500/year

Renewing your business license in New Jersey

Renewing your New Jersey business license is just as important as getting it in the first place. Many licenses have to be renewed every year to remain valid, if they’re issued locally or by a state regulatory board. For the renewal process, you’ll typically have to submit some updated paperwork, confirm your continued regulatory compliance, and pay a renewal fee.

Annual renewal requirements

Local licenses issued by a township or municipality often expire after 12 months. You’ll have to renew each year through your city or township clerk’s office. 

State-issued professional licenses are managed by licensing boards. They may require you to have continuing education, updated insurance, or inspection reports.

Sales Tax Certificates issued by the Division of Taxation do not need to be renewed. However, your business must remain in good standing and file regular tax returns.

Late penalties and compliance risks

Failing to renew a business license in New Jersey on time can result in:

• Late fees or administrative penalties
• Suspension or revocation of your license
• Fines for operating without a valid license
• Loss of eligibility for government contracts or grants

Pro Tip: To avoid disruptions, set calendar reminders and check with local and state agencies for renewal timelines. Some municipalities offer online renewal portals, while others require in-person or mailed applications.

Conclusion

So now you know about New Jersey business license costs and associated fees. There is no general business license requirement in New Jersey, but you will most likely have to register with DORES for a BRC. Licensing can vary a great deal between municipalities, counties, and state boards.

It all depends on your business structure, industry, and location. Learning how to start an LLC in New Jersey can speed up your business launch. 

If you’re ready to take the next step and start a small business, understanding your licensing and registration requirements early can help you stay compliant and avoid unnecessary delays.

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