Step-by-Step Guide to Registering a Company in New Jersey

New Jersey is rank highly in terms of labor supply, prospects for growth, and quality of life. Pharmaceuticals, financial services, telecommunications, food processing, and tourism play important roles in Jersey’s economy. Several large companies, such as Johnson & Johnson, Bed Bath & Beyond, and Campbell Soup, are also based there. New Jersey is an excellent location to launch a new business because of its highly educated labor pool.

Step-by-Step Guide to Registering a Company in New Jersey

Choose a Business Idea

Spend some time brainstorming and researching potential business ventures. At this point, consider your preferences, abilities, resources, availability, and the motivations behind your desire to start a business. Once you’ve decided on a New Jersey business registration idea, you should create a business plan to evaluate the chances of being profitable. 

When you develop a plan, you will have a clearer understanding of your competitors, starting costs, and revenue-generating tactics. Before offering financial support, lenders and investors usually ask to see your business plan. 

Here’s what you should include in your business plan:

• A summary of your company that includes your target market, competitive edge, and goods or services.
• An overview of your company that includes its history, location, legal structure, and key staff members. This should provide a high-level view of your company’s operations.
• A concise and clear statement of the goals and principles of your company. Both your staff and your clients should find it memorable and meaningful.
• A thorough evaluation of the needs, desires, and demographics of your target market. This makes it easier to Know your market and how to reach them.
• A description of the roles and responsibilities of the management team at your company. This should demonstrate who in your company is responsible for what.
• A thorough explanation of the features, advantages, and costs of your goods and services. This should demonstrate what you have to offer to lenders and investors.
• A summary of your company’s finances, including expected income, costs, and capital requirements. This could show prospective lenders or investors how profitable your company is operating.
• A complete sales strategy that covers your target market, marketing channels, and promotional strategies for your goods or services. This should outline your strategy for contacting potential clients and closing deals.

Choose a Name in Jersey

Make sure your name can be distinguish from other business entities’ names that are already on file with the New Jersey Department of Revenue and Enterprise Services (DORE) if you are an LLC or corporation. Using the DORE website, you can search for available names by conducting a business entity name search. By submitting an application to the New Jersey DORE to reserve a name, you can hold onto a name for up to 120 days. Both corporations and LLCs must have specific names; for example, their names must contain the word “L.L.C.” or “Company” for corporations. 

If a New Jersey general partnership or sole proprietorship uses a business name that differs from the names of the partners (in the case of a general partnership) or business owner (sole proprietorship), they must register for a trade name (also known as an assumed name) at the county level.

Create Your Business Entity in Jersey

• Sole proprietorship: A sole proprietorship can be form in New Jersey without the need to submit any organizational paperwork to the government. 
• Partnership: No organizational documents need to be file with the state of New Jersey to form a general partnership. A written partnership agreement should be present in every partnership, even though it is not legally necessary. If a disagreement ever arises between the partners, the partnership agreement can be of great help. A Statement of Qualification also called a Public Records Filing, must be submit to the New Jersey DORE to establish a limit liability partnership, which is a common business structure use by professionals.
• LLCs: You must file a public records filing with the New Jersey DORE  to establish an LLC in the state of New Jersey. The filing can be finish on paper or online. You must also designate a registered agent in New Jersey. Additionally, even though it’s not required by law, you must create an operating agreement outlining the fundamental guidelines for your LLC’s operations. There is no state filing for the operating agreement.
• Corporations: A certificate of formation must be submitte to the New Jersey DORE to establish a corporation in the state of New Jersey. 

To establish forth your corporation’s internal operating procedures, you should also draft bylaws, even though it is not legally necessary.  Bylaws are not file with the state.  S Corporations have to file IRS Form 2553, Election by a Small Business Corporation, with the IRS. 

Secure necessary funding

People come to New Jersey in great numbers to start businesses because the state offers several incredible funding opportunities for first-time business owners. Grants and special loans that make starting a business more affordable may be available, depending on your status as a business owner and the kind of company you are launching.

Register Your Business

You must file a certificate of formation, pay a filing fee, and choose a registered agent to register your small business in New Jersey. Also, you might need to register the trademark for your business; this is a straightforward procedure. 

Apply for an Employer Identification Number (EIN)

For tax purposes, registered businesses and organizations receive a nine-digit number from the IRS. All companies in New Jersey that employ people or submit a federal tax return must have this number, which is known as a Federal Employer Identification Number (EIN).

Obtaining an EIN for your company has many advantages. You can legally hire people to assist you in managing all aspects and operations of your business, protect your privacy by using your EIN instead of your Social Security Number (SSN), and use it to apply for business loans, open a business bank account, or open a business credit card account.

You can obtain an EIN online by completing an application on the IRS website. After submitting your application, you will receive your EIN immediately. Obtaining an EIN online is quick and simple. You must use your EIN on all business tax returns and other official documentation as soon as you obtain it.

Apply for Licenses and Permits

All companies operating in New Jersey must apply for a general business license, also known as a business tax certificate. Cities and municipalities in New Jersey issue business licenses, and each city has its own set of regulations. You must apply for a business license in each city where you intend to conduct business. In addition to a general business license that might need to be submitte to the state or county, other permits might be need. 

Set up a business bank account.

You must keep your personal and business finances apart to keep the liability protections that come with registering your business. The easiest way to accomplish this is to open a business bank account.

In New Jersey, combining your personal and business finances can make it harder to differentiate between the two, putting your high-value personal assets—such as your home and car—at risk if your company is sue. By keeping your finances separate with a business bank account, you can identify which assets belong to your company and which are your personal property.