New Jersey is open for business. It’s home to top corporations such as Johnson & Johnson, Conduent, Merck & Co, among many others.
If you’ve decided to start a business in NJ, congratulations! New Jersey has a thriving business environment and has the world’s densest shopping mall concentration.
However, the fact that others have succeeded doesn’t mean you’ll succeed as well. You need to prepare well and follow the steps that form the foundation of every business.
In this guide, you’ll learn the key steps to follow when starting a business in New Jersey.
Choose a Business Name
Do you consider this the easiest part of starting a business? You’re probably wrong. A poorly thought-out name could be the first reason your startup will fail.
A business name is what everyone will associate with your business. It should be easy to remember, plus meet other criteria such as:
- Easy to pronounce
- Available for a .com domain
- Maintain a positive connotation
Well, these are the basics of choosing a business name. For more detailed information, check out the tips for naming a business.
After arriving at your preferred name, verify if the name is available. New Jersey offers Business Name Search and Name Availability Search verification tools.
Choose Type of Business
Next, decide if your business will be a sole proprietorship, partnership, corporation, LLC, or corporation.
You can read more about the legal and tax considerations of each on the IRS website.
Register the Business
To register the business, you must submit business formation documentation to the NJ Division of Revenue.
LLC registration is done by mail or online. The cost of registration is $125. Once approved, you receive a Certificate of Formation.
The same process is followed when registering a corporation.
For sole proprietorship and partnership, you don’t need the NJ Division of Revenue. The two are not legal entities. You’ll register with the NJ Division of Taxes. If you’re confused about the actual process of setting up an LLC, and if you don’t want the hassle of filing documents yourself, hiring LLC formation services is a good option. We’ve found a good list of companies on this page – https://medium.com/@robert_12963/best-llc-service-b737a85db16f
The IRS requires every business to have a tax ID known as an Employer Identification Number.
You’ll use it to open bank accounts, file taxes, get financing, and handle payroll.
See how to obtain an EIN in NJ.
Business Licenses and Permits
After registering your business, you’ll want to check if you need local licenses and permits to operate the business.
Sometimes there are town, municipal, and city permits required.
Whether your business is a sole proprietorship or an LLC, you’ll most likely need to hire employees.
Hiring employees comes with new obligations. You’ll need to comply with NJ labor laws.
Such laws touch on minimum wage, sick leave, personal injury, overtime wage, fringe benefits, among others.
Unfortunately, the hassle of opening a business in New Jersey plus hiring and managing employees can take a toll on any startup owner. Handling payroll, taxes, talent, and other business activities can leave you without time to enjoy your business’s success.
That’s why you need a professional employer organization to assist in running the business.
View how a PEO can boost the growth of small and mid-sized businesses in New Jersey.
Prepare Before Starting a Business in New Jersey
When starting a business in New Jersey, your goal is to make a profit. However, that’s not always the case— a large number of startups fail due to poor preparations. You need to follow these steps to give your business a great start.
Now that you know how to start a business in New Jersey, it’s time to learn more business tips? Browse through our site for more information.