Let me show you straight-up how to start a business in New Jersey. I already know this is what you are looking for. So, here’s how best to get a hang of it. Just stay on this.
New Jersey is one of the safest, serene, and healthiest places to live in the nation.
Just like Florida, New Jersey has a cozy sunny, and warm climate which fosters business growth.
New Jersey’s population in 2021 is estimated to be 8.97 million. It is the 11th most populated state and 47th by area rank in the State.
Arguably, starting a viable business in New Jersey is going to be a great thing to consider. According to Business News Daily, New Jersey is home to America’s eighth-largest economy, valued at $624.9 billion annually.
As we proceed in this article, I’m going to show you all the tips you need to apply to start a successful business in New Jersey.
Meanwhile, here’s the table of content for an overview of what to expect in this article.
Why Start A Business in New Jersey?
There are many reasons why you may want to run a business in New Jersey. According to Business News Daily, there are 861,373 small businesses in the state of New Jersey, which makes up 99.6% of all Garden State’s businesses and employs more than 1.8 million workers.
According to the U.S. Census Bureau, New Jersey hosts about 1,195 people per square mile, as opposed to the national average of 87 people per square mile. This means more demand for various products and services.
So, as it is, New Jersey’s diversity, which is really excellent is what every business needs to thrive. Sincerely speaking, New Jersey has a very robust marketplace where any business can blossom.
In NJ, there are countless opportunities for niche marketing and developing a loyal customer base, no matter what industry your business operates in.
How Much Does it Cost to Start a Business in New Jersey?
According to LegalZoom, the basic total cost of forming or registering an LLC in New Jersey is $125, which includes the fees for filing the Articles of Organization and the registered agent designation.
The New Jersey Department of the Treasury also requires your corporation to file an annual report, the fee for which is $50. Finally, corporations must pay an annual tax fee to the New Jersey Department of Revenue.
So in a whole year, you may be expected to pay up to a minimum of $500 to set up your business.
Do I Need A Business License to Start A Business in New Jersey?
New Jersey does not have a certain stipulated statewide business license for business operators. But businesses may need to register with the New Jersey Department of State to be eligible to run their businesses.
What successful businesses are in New Jersey?
According to Zippia.com, there are over 1,140 successful businesses in New Jersey. Some of the successful businesses in New Jersey include;
- Johnson & Johnson
- Berger Group Holding
- Panasonic Corporation Of North America etc
See the list of all the big businesses in New Jersey here.
How To Start A Business in New Jersey: Step by step guide
Starting a business in New Jersey is not difficult but could be rigorous. In the lines below, we’ll look at how you can start a business in New Jersey.
Let’s get started
Starting a business in New Jersey requires the following basic steps:
Now let’s look at these points one at a time.
You need to read this: Starting A Business After College | 10 Avoidable Mistake To Look
#2 Choose a Business Name and Type
Before starting a business, you must have chosen a name for your business and then know what type of business you want to do.
It is important you should know about the main business structures in New Jersey. Although we will list them below, you may still consult an attorney if you do not know which business type to form.
The business types are:
a. Assumed Names/DBA
This business type is for sole proprietors or general partners who do not conduct business with the full names of each individual doing business with them. They have to file a Certificate of Assumed Name.
Similarly, any corporation, limited partnership, or LLC that conducts business under a name other than the exact legal name of the entity, must file a Certificate of Assumed Name.
b. New Jersey Business Corporations
This business type is formed when two or more persons come together to form a corporation. The corporation has a general business purpose and has legal power of its own.
c. New Jersey Nonprofit Corporations
Any individual who wishes to form a nonprofit corporation in New Jersey must file Articles of Incorporation to include that there will be no monetary gain and no paying of dividends to the members. You may also apply for tax exemption if you are starting a nonprofit organization.
Foreign Corporations (Business, Nonprofit, Cooperative).
d. New Jersey & Foreign Limited Liability Companies
LLC can be formed by two or more people. It is a business organization that combines flow-through taxation with limited liability.
This means that it is a business that enjoys a liability shield (the owners are legally responsible for the business debts only to the amount of capital they invested) of a corporation and the flexibility and tax pass-through advantages of a partnership.
e. Foreign and New Jersey Limited Liability Partnerships
For you to start this type of business in New Jersey, an existing partnership will register to take part in the advantages which a limited liability company enjoys.
f. New Jersey Public Benefit Corporations
A public benefit corporation is a new type of profit-making business to start in New Jersey in which the business promises to provide a general or specific benefit to society.
This benefit may not necessarily be related to the business the corporation operates. The business will submit an annual report that details how they met their public benefit.
There is no tax advantage to being a public benefit corporation, or to investing in one. There are no tax deductions to investors, and the company pays corporate tax on all profits.
Lastly, you must file for a public benefit corporation in person. It cannot be done online.
#3 Register/file your Business
You have your startup in New Jersey either by mail or in person. Before we go on to mention how to register your business, business registration does not give you a tax ID number. You have to file for this separately through the New Jersey Department of Revenue( for a state tax ID).
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How to Register your Business in New Jersey
Almost all businesses in New Jersey must register with the Office of the New Jersey Secretary of State.
Before registering your business, you must decide the structure/type of business you want to register.
Step1: Create an Online Account
Create an online account and login. Creating an online account.
Step2: Choose a Business Structure
Go to the Business Filings Online page and click on the business structure you would like for your business.
Step3: Answer questions
Answer the questions about the non-profit status and professional status.
Step4: Verify Business Name
Verify if the name you would like your business to bear is available. To do this, just type the proposed name into the search box. You don’t need to type the entity ending (LLC, Corporation, etc) at the end, just use the drop-down menu to choose the way you would like the suffix displayed.
Take note of the following information as regards names;
Step5: Upload Documents
Enter other requirements. For the documents, it is recommended you save them as a PDF and the size should be less than 2MB.
The file name must be 10 characters or less and contain no punctuation, spaces, or special characters.
Again, at the bottom of the forms is a place for signatures, typing in your name satisfies this requirement.
Make sure to review the file before clicking submit. After this, you’ll receive an Order Number specific to your filing. Record the Order Number before continuing. Then click on the “Go to US Bank” button.
Once on the US Bank page, you will have the option to set up an e-service account with US Bank. The US Bank e-service account will store your credit card information for future transactions.
You can bypass the US Bank e-services registration by clicking on “pay without registering”. This allows you to process a one-time payment with your credit card.
Step 7: Confirmation Stage
After payment, you will receive a confirmation page along with a payment confirmation number. Print out the confirmation page or record the Confirmation Number. You will receive an email when the filing is processed as well as an email for the payment from US Bank.
Step 8: Final Stage
You will receive an email that your file has been processed, it contains a link where you can download a copy of the filing.
All filings are kept in your Transaction History for 90 days. After which it is automatically wiped.
You can access the transaction history by signing into your online account which you created in step1 and clicking on Transaction History. Click on the order number on the right and it will give you an option to download the filing.
#4. Apply for your Employer Identification Number (EIN)
The next thing to do would be to apply for an employer identification number (EIN).
The EIN is a nine-digit number assigned by the IRS. It’s usually used to identify the tax accounts of employers. The IRS uses the number to identify taxpayers who are required to file various business tax returns.
#5. Learn about annual and ongoing requirements for your business structure
Pay a visit to the New Jersey Chamber of Commerce to learn about all annual and ongoing requirements needed for your business. Find out all the papers and documentation you need to make to get on set.
#6. Define Brand
Creating a brand builds customer loyalty. It eliminates competition in the business world.
Ensure you have a unique selling point, a strong online presence, and great advertising channels.
#7. Create an Online Presence
Taking your business online will help it get noticed by prospective clients. So, the next thing you’d need to do after you have fulfilled every other requirement is to create a viable online presence for your business.
Creating a professional website is instrumental to the long-term success of your business, regardless of what industry you. It enables customers to find your products and services.
Consider setting up social media accounts, registering for a Google profile, and creating accounts on review sites like Google Reviews.
The process we’ve outlined here is just simple and straight. There are not too many rigors.
All you need is to carefully follow the steps outlined here for you. However, you need to register for taxes, brand your business, open bank accounts, and create a strong online presence for visibility.
If there is any other thing you need to know, visit the US Chamber of Commerce for more.