New jersey is one of the worst states to start a business; here's how bad it really is...

New Jersey is One of the Worst States to Start a Business; Here’s How Bad it Really is…

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1 min read
February 24, 2025

TRENTON, N.J. — New Jersey is the seventh most expensive state to start a business in 2025, according to a new study by Simplify LLC, which analyzed costs such as taxes, wages, rent, and utilities.

The study found that New Jersey businesses face high expenses due to extensive regulations, elevated wages, and significant corporate tax rates. The state has 296,926 regulations, ranking 49th in the nation, and an average wage of $80,570, placing it 45th. New Jersey’s corporate tax rate stands at 7.67%, ranking 42nd.

Electricity costs are also a challenge, with businesses paying an average of $780.47 per month, ranking 38th. However, New Jersey fared better in some areas, with moderate rankings in labor force participation (64.6%, tied for 19th) and small business lending ($9.4 million per 100,000 people, 14th overall).

Nationally, Utah was ranked the least expensive state for startups, followed by South Dakota, Colorado, and Wyoming. California topped the list as the most expensive, followed by New York and Hawaii.

The report highlights rising business costs across the country, with labor expenses increasing 3.8% over the past year, commercial rent rising 3.2%, and commercial electricity costs jumping 22% since 2020.

With high taxes, wages, and regulations, New Jersey remains a costly place to launch a business in an era of rising expenses.

Phil Stilton

Phil Stilton is the Editor and Publisher of Shore News Network, an independent digital newsroom providing original reporting on New Jersey, national news, government, public policy, public safety, courts, and community affairs.

As founder of the publication, Stilton leads editorial strategy, investigative reporting, and daily newsroom operations while overseeing coverage that reaches millions of readers annually.

With extensive experience covering municipal government, county government, state legislatures, elections, law enforcement, emergency management, and public records, Stilton specializes in translating complex government actions into clear, factual reporting. His work frequently relies on primary source documents, including court filings, legislation, public meeting records, election finance disclosures, government databases, police reports, and Freedom of Information and Open Public Records Act (OPRA) requests. He has reported extensively on local government accountability, taxpayer spending, campaign finance, public corruption investigations, infrastructure, public safety, and the policies affecting New Jersey residents.

Under Stilton's editorial leadership, Shore News Network has grown into one of New Jersey's largest independent digital news organizations, publishing thousands of original news articles each year while providing breaking news coverage, investigative reporting, and analysis across state and local government. The publication's reporting is routinely sourced from official government agencies, public officials, court records, and firsthand documentation, with a commitment to transparency, attribution, corrections when warranted, and clearly distinguishing factual reporting from opinion.

Stilton's journalism follows established newsroom standards emphasizing accuracy, verification, fairness, and accountability. Every effort is made to verify information through official records and multiple reliable sources before publication. His reporting is intended to provide readers with timely, well-documented information that helps them understand the issues affecting their communities, while maintaining editorial independence from political parties, government agencies, advocacy organizations, and commercial interests.

Readers can submit story tips, corrections, public records, or media inquiries through the official Shore News Network website or its verified social media channels. Shore News Network welcomes corrections and updates when new information becomes available as part of its ongoing commitment to accurate and transparent journalism.

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