How to Start a Business in New Jersey in 2022: The Ultimate Step-by-Step Guide
Let me show you how to start a business in New Jersey. I already know this is what you are looking for. So here's how to best go about it. Stay on that.
New Jersey is one of the safest, serene, and healthiest places to live in the country.
Much like Florida, New Jersey has a pleasant, sunny, and warm climate that promotes business growth.
The population of New Jersey in 2021 is estimated at 8.97 million. It is the 11th most populous state and the 47th in terms of state area.
Arguably, starting a viable business in New Jersey will be a great thing to consider. According to Business News Daily , New Jersey is home to the eighth largest economy in the United States, valued at $624.9 billion per year.
As we progress through this article, I'm going to show you all the tips you need to start a successful business in New Jersey.
In the meantime, here is the table of contents for an overview of what to expect in this article.
Why start a business in New Jersey?
There are many reasons why you might 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 accounts for 1.8% of all businesses in Garden State and employs over 99.6 million workers.
According to the U.S. Census Bureau, New Jersey is home to approximately 1,195 people per square mile, as opposed to the national average of 87 people per square mile. This means increased demand for various products and services.
So as it stands, New Jersey's diversity, which is truly excellent, is what every business needs to thrive. Honestly speaking, New Jersey has a very strong market where any business can flourish.
In New Jersey, there are countless opportunities for niche marketing and building 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 a LegalZoom , the basic total cost of forming or registering an LLC in New Jersey is $125, which includes fees for filing articles of organization and appointment of registered agent. .
The New Jersey Department of Treasury also requires your corporation to file an annual return, the fee for which is $50. Finally, corporations must pay an annual tax to the New Jersey Department of Revenue.
So, over an entire year, you might have to pay 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 stipulated statewide business license for commercial operators. But businesses may need to register with the New Jersey State Department to operate their businesses.
What are the successful businesses in New Jersey?
According to a Zippia.com , there are over 1,140 successful businesses in New Jersey. Some of New Jersey's successful businesses include;
Johnson & Johnson
BMW
Berger Group
ShopRite
Panasonic Corporation of North America, etc.
See a list of all major New Jersey companies here .
How to Start a Business in New Jersey: A Step-by-Step Guide
Starting a business in New Jersey isn't difficult but could be daunting. In the lines below, we will see how you can start a business in New Jersey.
Let's start!
Starting a business in New Jersey requires the following basic steps:
Choose a business type and name.
Register your business.
Ask for your Employer Identification Number (EIN).
Open a business checking account and a credit card to pay all expenses with
Obtain all necessary business licenses and permits.
Let us now examine these points one at a time.
You need to read this: Starting a business after college | 10 avoidable mistakes to watch
#2 Choose a business name and type
Before you start a business, you must have decided on a name for your business and then know what type of business you want to do.
It is important that you know the main business structures in New Jersey. Although we list them below, you can always consult a lawyer if you are unsure of what type of business to form.
The types of companies are:
a. Assumed names/DBAs
This type of business is for sole proprietors or general partners who do not do business with the full names of every person doing business with them. They must file an alias certificate.
Similarly, any corporation, limited partnership, or LLC that carries on business under a name other than the entity's exact legal name, must file an assumed name certificate.
b. New Jersey Trading Companies
This type of business is formed when two or more people come together to form a corporation. The company has a general commercial object and has its own legal power.
vs. New Jersey Nonprofit Corporations
Anyone wishing to form a nonprofit corporation in New Jersey must file articles of incorporation to state that there will be no monetary gain and no dividend payments to members. You can also apply for a tax exemption if you start a non-profit organization.
Foreign companies (companies, non-profits, cooperatives).
D. New Jersey and Foreign LLCs
LLC can be formed by two or more people. It is a commercial organization that combines flow-through taxation and limited liability.
This means that it is a business that enjoys the liability shield (owners are legally liable for business debts only for the amount of capital they have invested) of a corporation and the flexibility and tax advantages of a partnership.
e. Overseas and New Jersey LLCs
For you to start this type of business in New Jersey, an existing partnership will register for the benefits of a limited liability company.
F. New Jersey Public Benefit Corporations
A public benefit corporation is a new type of for-profit business to start in New Jersey in which the business promises to provide a general or specific benefit to society.
This benefit is not necessarily tied to the business operated by the corporation. The company will submit an annual report that details how it has achieved its public benefit.
There are no tax benefits to being a public benefit corporation or investing in a corporation. There are no tax deductions for investors and the company pays corporation tax on all profits.
Finally, you must file a public benefit corporation in person. It cannot be done online.
#3 Register/deposit your business
You have your startup in New Jersey by mail or in person. Before I continue to mention how to register your business, business registration does not give you a tax ID. You must file it separately with 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 New Jersey businesses must register with the office of the New Jersey Secretary of State.
Before registering your business, you need to decide what structure/type of business you want to register.
Step 1: Create an online account
Create an online account and log in. Creation of an online account.
Step 2: Choose a business structure
Go to the Business Filings Online page and click on the business structure you want for your business.
Step 3: answer the questions
Answer questions about association status and professional status.
Step 4: Check the company name
Check if the name you want your business to have is available. To do this, simply type the proposed name in 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 how you want the suffix to display.
Take note of the following information regarding names;
The words “Bank” or “Trust” are not permitted unless used in such a way as not to refer to a financial institution.
A name that contains the word “Insurance” must also include the modifier “Agency”, “Broker”, “Brokerage” or “Services” or similar modifiers to indicate that this business is not engaged in underwriting.
Banks and insurance companies do not file with the Secretary of State. Instead, they must file with the New Jersey Department of Commerce.
Step 5: Upload documents
Enter other requirements. For documents, it is recommended to save them in PDF format and the size should be less than 2 MB.
The file name must be 10 characters or less and must not contain any punctuation marks, spaces, or special characters.
Again, at the bottom of the forms is a place for signatures, entering your name satisfies this requirement.
Step 6: Submission
Be sure to review the file before clicking submit. After that, you will receive an order number specific to your depot. Save 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 create an electronic service account with US Bank. The US Bank Electronic Service Account will store your credit card information for future transactions.
You can bypass the US Bank's electronic services registration by clicking "pay without registering". This allows you to process a one-time payment with your credit card.
Step 7: Confirmation step
After payment, you will receive a confirmation page with a payment confirmation number. Print the confirmation page or save the confirmation number. You will receive an email when the deposit is processed and an email for payment from US Bank.
Step 8: Final step
You will receive an email indicating that your file has been processed, it contains a link where you can download a copy of the deposit.
All deposits are kept in your transaction history for 90 days. After which it is automatically deleted.
You can access transaction history by logging into your online account that you created in step 1 and clicking on Transaction History. Click on the order number on the right and you will be given the option to download the file.
#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 is generally used to identify employers' tax accounts. The IRS uses the number to identify taxpayers who are required to file various tax returns.
#5. Learn more about the annual and ongoing requirements of your business structure
Visit the New Jersey Chamber of Commerce to learn more about all the annual and ongoing requirements needed for your business. Discover all the papers and documentation you need to get on set.
#6. Define the brand
Creating a brand builds customer loyalty. It eliminates competition in the business world.
Make sure you have a unique selling point, a strong online presence, and excellent advertising channels.
#7. Create an online presence
Putting your business online will help it get noticed by potential customers. So, the next thing you need to do after completing all the other requirements is to create a viable online presence for your business.
Creating a professional website is essential to the long-term success of your business, regardless of your industry. It allows customers to find your products and services.
Consider creating social media accounts, signing up for a Google profile, and creating accounts on review sites like Google Reviews.
Conclusion
The process we've outlined here is just simple and straightforward. There are not too many rigors.
All you need is to carefully follow the steps given here for you. However, you need to register for taxes, brand your business, open bank accounts, and build a strong online presence for more visibility.
If there's anything else you need to know, visit the United States Chamber of Commerce to learn more.
References
How to Start an LLC
Business News Daily
University LLC
zippia
LegalZoom
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