7 Things to Know When Starting a Business in New Jersey
Are you thinking about starting a business in New Jersey?
Whenever you’re starting a business anywhere, you must do your best to ensure it doesn’t fail. When we’re talking about New Jersey, though, where there are over 800,000 enterprises, you need to step up your game. Failure here is much more severe as it’s harder to come back with all the businesses competing against one another.
To ensure your New Jersey business doesn’t crash, you’ll need to make sure it starts off well. This means that you need to consider every factor that can impact your business’s launch. Below are the top seven factors that can affect the launch of your business.
Read on to ensure you have no trouble starting your business in the state of New Jersey. Set your business up for success from the get-go!
1. Choose the Appropriate Business Structure
First, you need to determine the legal structure of your business. Doing this allows you to split or take responsibility for your business. The most common structures are Partnership, Sole Proprietorship, Corporation, and LLC.
Sole Proprietorship means that you’ll be running your business on your own. You and the business will be the same legal entity. This means that whatever your business is responsible for is on your shoulders, and vice versa.
The state automatically assumes that you’re going for this structure from the get-go. Because of this, you need not actually register your business structure if this is the case.
If you’re going for a Partnership, though, you’ll need to register yourself and your partner. This is so the state will recognize your partner as responsible for the business, too.
A corporation is much more complex since it needs a lot of factors before you can register it as a corporation. You’ll need representatives to be your board of directors, corporate officers, and more representatives to act as your shareholders.
What’s great about a corporation is that it’s its own legal entity. This is to provide protection for the shareholders. The only downside is that it faces double taxation in the state of New Jersey.
LLC (Limited Liability Company) is often the choice for business partners. This combines the benefits of sole proprietorship and partnership structures. What’s great is that it protects both owners from any legal action the business takes.
2. Choose a Good Name For Your Business
Once you’ve settled on a good legal structure, it’s time to focus on what your business will be about. Start by focusing on the idea of your business. What will you be selling, and how will you sell it?
Once you’ve nailed down some simple business ideas, it’s time for the most important step in starting a business. Now, you’ll have to come up with the name of your company. This is important because it’s the first thing people will associate with your brand.
This makes it important to come up with a catchy name. All great company names are catchy simply because it makes it easier to remember this way.
While you’re at it, check if the name is available as a domain name. This makes it easier for you to create a business website later on.
3. Register Your Business
Your next stop will be in New Jersey’s Division of Revenue. You’ll need to pay a fee to register your business here. The amount will depend on the structure you’ve decided on beforehand.
As mentioned above, you need not pay for anything if you’re going for a sole proprietorship. You don’t even need to register for it unless you want to file under a name different than yours.
This also applies to the partnership structure. You’ll only need to pay a one-time fee when applying for an LLC or corporation. It will cost you 125 USD to file your business and get your Certificate of Formation.
4. Get a Federal Tax ID Number
Also known as the Federal Tax ID Number, this is what’s used to identify your business for tax purposes. This is like the social security number of your business while in the state. It’s a way for your company to access important files like your business bank account and tax records later on.
5. Assess Your Financial Situation
The next step is for you to assess your financial situation. Doing this is a great way for you to know whether you’ll need a bank loan to start up your business. This ensures that everything goes well as you launch your business.
You should also open up a company bank account. Doing this soon allows you to qualify for loans later on when you need it.
6. Get Licenses and Permits
Once you’ve opened a company bank account, you can now register for the necessary licenses and permits for your business. New Jersey real estate is not as expensive as New York, but you’ll still need the proper paperwork to establish a business anywhere there.
This is more important now since sheriff sales remain on hold because of the pandemic. Doing this ensures that your business runs legally within the state. It’s also a good way to obtain much-needed forms later on, such as the ones that allow you to get insurance for your business.
7. Register to the Division of Taxation
Once you’ve formed your business, you’re then required to register to New Jersey’s Division of Taxation. It’s the final step for you to take before you can legalize your business in New Jersey.
This is because you’ll need to pay the state for taxes, especially if you’re selling retail. What’s great is that you can register online. It’s quicker than going to the physical itself.
To make sure that you’ve got your pricing in order, check with a local accountant. It ensures that you get the right VAT for your products and that it complies with federal, and state tax policies.
Ensure Success When Starting a Business In New Jersey Today
Are you starting a business in New Jersey? You’ll want to make sure that you get everything correct right from the start. Use this guide to help you ensure everything is in order and start your business now!
Do you want to learn more about business management? Check out more of our guides to learn all you can! Use these to manage your business well and ensure it’s future today!