When people mention New Jersey, it tends to come with a bunch of stereotypes – industrial, suburban, the Sopranos. But to cast New Jersey as just New York’s less snazzy relative means overlooking the advantages that are on offer in the state, especially for entrepreneurs.
And for foreign entrepreneurs who rely on the American market, there may be an even more pressing need to set up in the US due to the uncertainty around tariffs. Manufacturing their products in America may help bypass the bureaucracy of customs by producing the goods closer to their target base.
Whether you’re a US entrepreneur looking to expand to the East Coast, or a foreign entrepreneur wanting to lock down the American market, New Jersey has a whole host of benefits.
There is a huge concentration of scientists and engineers in the region due to the large amount of ready-made lab space, and the New Jersey workforce is highly educated and skilled thanks to top-ranked schools, vocational colleges and famous universities such as Princeton.
For export/import entrepreneurs, the good news is that New Jersey houses one of the busiest ports on the East Coast, the massive Newark Liberty International Airport as well as laying claim to one of the highest railroad densities in the US – perfect for customer reach and deliveries.
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There is also the Gateway Program which received $6.88 billion from the federal government which aims over the next few years to deliver ambitious rail projects between Newark and Penn Station in New York City, coupled with creating a new tunnel under the Hudson River and replacing several bridges.
New Jersey Tax and Business Incentives
Tax incentives and collaboration prospects make setting up a business a whole lot more attractive. If you want to discover what the state has to offer, you can check out the New Jersey government website which gives you the lowdown on all tax matters.
But your next port of call should be the New Jersey Economic Development Authority (NJEDA) which provides around 50 tax credits, grants, and tailor-made incentives for businesses who are willing to create jobs and invest or innovate in New Jersey communities.
There is also the cutting edge NJ AI Hub which aims to bring together AI leaders, startups and researchers to develop the use of ethical AI along with Princeton University, Microsoft, and CoreWeave.
Industries in New Jersey
Some of the industries that are currently benefitting from New Jersey tax incentives or research and development grants include:
Pharmaceutical and medical
Pharma and medical research companies are drawn to New Jersey because of the innovative workforce and also the purpose-built spaces for the industry. As well as the two million square feet of research and development space Northeast Science and Technology Center (NEST) in Kenilworth, the new Helix hub is being built in New Brunswick which will create lab space and facilities for businesses, researchers and universities.
Tech
Big hitters such as Samsung and WebMD are already housed in New Jersey but it’s also a welcoming place for new startups, software and web developers and also has one of the highest percentage of women-led startups in the world. The tax credit programmes, tech grants and the sheer number of investors and fintech companies in the area make New Jersey a smart choice for tech startups and entrepreneurs.
Manufacturing
The area has long been a hub for manufacturing and currently New Jersey is home to over 9,000 manufacturing companies, both big and small, traditional and innovative, employing in total over 250,000 workers and contributing more than $50 billion a year to the US economy. The numerous nearby community colleges and vocational schools make it easy for employers to find skilled workers.
Film and TV
Industry leaders like Lionsgate and Netflix have already built production facilities in New Jersey. They will not only benefit from the diversity of New Jersey’s geography which offers filmmakers city skylines, shorelines, and countryside but they can also take advantage of the state’s 70 pre-existing production stages which are manned by experienced local film crews.
There are also some very attractive incentive programs for filmmakers such as a 40% tax credit for production companies, while legacy projects may qualify for up to 35% tax credit, with an additional 4% bonus available for productions shooting in run-down locations.
Food and Beverage
In New Jersey industry giants such as Campbell Soup and Mars Wrigley, sit alongside innovative food tech startups, keeping the region’s food industry thriving. As well as commercial kitchens and food incubators that offer affordable space, equipment, and resources for companies, the award-winning Rutgers Food Innovation Center (FIC) offers marketing, technical, regulatory, and manufacturing expertise providing valuable support to startups and established food companies.
US visas for foreign entrepreneurs
New Jersey has attracted $20.9 billion in foreign direct investment over the last 20 years. Successful foreign businesses who have relocated to New Jersey or set up branches include Kering Eyewear (a French startup), Gamesys (a UK based gaming operator), Daiichi Sankyo (Japan’s second largest pharmaceutical company), and Applegreen (an Irish company with a focus on electric car charging).
For visa advice it’s best to seek the advice of an expert (especially as government rules seem to be changing all the time!), however there are a few visas currently on offer for foreign entrepreneurs who can bring finance and jobs to New Jersey.
E2 Visa
The E2 Visa is one option for entrepreneurs who run a company in the US and invest at least $100,000 in the business. It’s only open to those that have a treaty with the US and those countries include: Canada, Mexico, Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Norway, Spain, Sweden, Switzerland, the UK, Japan, South Korea, Singapore, the Philippines, and Taiwan, Australia and New Zealand.
The E2 isn’t an immigrant visa so you don’t have a green card or citizenship but it can be constantly renewed if requirements are met. It also means close family members can join you (spouse and children), also allowing for spousal work authorisation and for children to attend US schools.
EB-5 Visa
If you want to have a more permanent status in the US, then a green card is obtainable through the EB-5 visa, if you are able to invest at least $800,000 in a new commercial US company and promise to create jobs for at least 10 workers. The EB-5 visa will allow you to get a green card, not only for yourself, but also for your spouse and your children (as long as they are under 21 years old).
L1 & EBC1 Visas
For a business that wants to expand their global reach to the US, The L1 visa allows a foreign company to transfer a manager, an executive or a specialised skilled knowledge worker, to a new affiliated company in the US such as a parent/subsidiary relationship or branch, as long as the worker has been employed for the foreign company full time for at least a year.
The EB1C visa is a version of the L1 visa but it also qualifies as a green card. However, it doesn’t allow specialised knowledge workers – only managers or executives and the US company must be fully operational for at least one year, prior to filing the EB1C petition.
Next steps to starting a business in New Jersey
So whether you’re an American entrepreneur wanting to expand your horizons, or a foreign entrepreneur who wants to make waves in the US markets, the next step is to get expert advice on company formation. For more information, don’t hesitate to get in touch with us today through our contact page, or visit our US formation page to learn more about our services.
