Steps to start a business in New Jersey
Therefore, today we are going to help you understand all the important steps that you need to follow to start a business in New Jersey. This guide is solely for you if you are looking forward to starting your entrepreneurial dream in no time.
1. Plan everything about your business
Everything means that you need to plan everything about the business that you need to set-up. For starters, you need to be sure about the type of business that you want to do. Now, you might have already chosen the industry that you want to fit in or the type of business you want to do. Once, you plan what you want to do you will have to choose a name for your business.
One thing that you want to avoid in this process is not to rush for completing things. When preparing the right name for your company make sure that you have a name that is remarkable, and easy to remember. This will lead to people noticing your brand and earn you some recognition in the early days. If you want to start a business in New Jersey, you can search for available business names by two methods. To search for a business name, you can take help from a Business Name Search, or use the Name Availability tool.
Not just that, you should also research the market in advance, know about your competition in the state, and choose the best-suited location for your company.
2. Understand which Business type will best suit your needs
Now as you have already decided most of the aspects of the business that you want to do in New Jersey, the next step is to decide the best legal structure for your business. Mostly, entrepreneurs in New Jersey settle for Sole Proprietorship, Corporation, Limited Liability Company, or Partnership.
A sole proprietorship is a business in which you are the sole operator of the company. It is only you who are responsible and are liable for any activity or wrongdoing.
A Partnership is almost the same as a sole proprietorship but in a partnership of 2 or more owners.
Corporation business is a rather complex structure that needs a board of directors, office, and shareholding. It’s not for the small business owner as they face dual taxation. If you plan to take your company public or have a large healthcare expense you can choose to be a corporation.
An LLC business is more of a hybrid body combining the benefits of a corporation and a Sole Proprietorship. New Jersey LLC is a separate body under the state of law. And unlike a corporation, one gets personal liability protection for owners. If your company is sued, your assets are safe.
If you want to start a business in New Jersey, you can get more information about this here.
3. Getting yourself registered with NJ Revenue Division
Whenever someone starts a business in New Jersey they will need to file the formation of their business document with the New Jersey Revenue Division.
For an LLC formation you can just do it via mail, or online. However, it is highly recommended that you file it online. It will cost you $125 which is a one-time fee. The same goes for registering as a Corporation.
However, if you are operating as a Sole Proprietorship you need to register yourself with the New Jersey Taxation Division. If you are doing business that is different than your first and last name, you will have to file an Alternate Name. The form for this is Form C-150G and it will cost you $50.
4. Apply for an EIN
Employer Identification Number is a Federal Tax ID number used by IRS to identify your New Jersey business for taxes. In simple words, you can say that if you want to start a business in New Jersey, it’s your business’s social security number. Getting an EIN hardly takes 15 minutes online. You can access your EIN online application on this website.
However, your LLC should be approved before you apply for an EIN.
5. Setting your banking, accounting, and insurance account
To keep your asset, separate from your business, and to keep your accounts and finance easy, you must set your business bank account. If you want to set up your business account in New Jersey in can visit here.
When you open your account, you will get a debit card and for a credit card, you can apply for a business credit card.
6. Updating all your license and permits
Once you get your business formed with the new Jersey Revenue Division, you will have to get in touch with your local municipality and confirm if you need a business license or permit to operate. You can check for your State Municipal and County Government here.
However, if you want to save some time for yourself, there are third-party administrations like IncFile that will do all the required documentation and get your license and permit application for you.
7. Transforming your business into your brand and revealing it to your audience
Once you have done all the paperwork, and get all the permits, and legalities completed for your company that you want to set in New Jersey, you now need to establish your brand. When you present your company to the market and your audience, you will want them to remember you, and you want to leave an everlasting impression.
Hence, that getting your brand identity created is one of the most steps. Start with getting yourself a stunning logo design and a tagline. Invest some time and capital in advertising and marketing your company. Get a social media page for your brand and bring more audience into it.
Not all brands worth a million dollars overnight. If you want your business to reach the limits of the sky, you should start from the ground and give some time to gain momentum and deepen its roots.