State guide · New Jersey
Starting a Medical Practice in New Jersey
What physicians need to know about New Jersey's regulatory environment, entity requirements, and practice-specific rules.
Entity required
Professional Corporation or Professional LLC
LLC permitted
No
CPOM enforcement
Strict
Top income tax
10.75%
Min. franchise tax
Verify — NJ Corporation Business Tax minimum $375–$2,000
Med board registration
Not required
The information on this page is provided for general reference only and may not reflect recent regulatory or legislative changes. Entity formation requirements, tax rates, and CPOM rules vary by state and change frequently. Always verify requirements with your state's official agencies, a qualified healthcare attorney, or a CPA with medical practice experience before making business formation decisions. Nothing on this page constitutes legal or financial advice.
Entity Requirements
New Jersey physicians may form a Professional Corporation under N.J.S.A. 14A:17 or a Professional LLC under N.J.S.A. 42:2C-104. All shareholders or members must be licensed NJ physicians.
Filing is with the New Jersey Division of Revenue and Enterprise Services.
- •Form a Professional Corporation or Professional LLC
- •All shareholders/members must be licensed New Jersey physicians
- •File Certificate of Incorporation or Certificate of Formation with the Division of Revenue
- •File Annual Report with the Division of Revenue
Corporate Practice of Medicine
New Jersey enforces the Corporate Practice of Medicine doctrine strictly. Lay ownership of medical practices is prohibited. The State Board of Medical Examiners and the New Jersey Attorney General actively enforce these limits, including through the Codey Law and physician self-referral restrictions.
MSO arrangements are widely used but must be carefully structured under N.J.A.C. 13:35-6.16 (the New Jersey Practitioner-Patient Relationship Rule) and N.J.A.C. 13:35-6.17 (Office Practice Standards).
Important
New Jersey is one of the strictest CPOM states. The New Jersey Codey Law restricts physician self-referral, and the Healthcare Facilities Planning Act may require licensure for many ambulatory care facilities. Use experienced NJ healthcare counsel.
Tax Considerations
New Jersey has the second-highest top personal income tax bracket (10.75%, after California). PTE election available (Business Alternative Income Tax). NJ Corporation Business Tax (CBT) minimum varies.
- •Top personal income tax: 10.75%
- •NJ Corporation Business Tax (CBT) for C-corps and PCs: rates up to 11.5%
- •NJ CBT minimum: Verify — $375–$2,000 depending on receipts
- •Business Alternative Income Tax (BAIT) — PTE election
- •6.625% statewide sales tax
New Jersey State Board of Medical Examiners
New Jersey does not require entity registration with the State Board of Medical Examiners for most practices, but the entity must comply with the Practitioner-Patient Relationship Rule and other professional regulations.
- •No general entity registration required for most practices
- •All practicing physicians must hold an active NJ medical license
- •Ambulatory care facilities may require licensure with the Department of Health
Employment Law Considerations
New Jersey is one of the most employee-protective states. Earned Sick Leave Act, Paid Family Leave (NJFLI), Temporary Disability Insurance (TDI), and Wage Theft Act all apply. NJ Law Against Discrimination (LAD) is broader than federal Title VII.
- •NJ Earned Sick Leave Act: 40 hours/year for nearly all employers
- •NJ Paid Family Leave Insurance (NJFLI) and Temporary Disability Insurance (TDI)
- •NJ Wage Theft Act: significant penalties, treble damages possible
- •NJ minimum wage rising to $15/hour and beyond (large employers $15.49 in 2025)
- •NJ Pay Transparency Act effective 2025 — pay range disclosure on postings
Heads up
NJ Wage Theft Act allows treble damages and criminal penalties for wage violations. NJ LAD covers more protected classes than federal law and has uncapped damages.
Official resources
Bookmark these official agency portals for New Jersey entity formation, tax registration, and medical board information.
Looking for New Jersey licensing and credentialing information?
State medical license requirements, controlled-substance registration, and Medicaid enrollment specifics for New Jersey.
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