Determination of Business Name & Its Registration
The
first step towards starting a business involves deciding the legal form
of your business. The following are possible scenarios:
A
sole proprietorship or general partnership will generally use a “trade
name.” If you intend to do business under your own name, then no trade
name registration is required. Registration is only considered
advisable. If you intend to operate a Sole Proprietorship or General
Partnership using a business name, then you must contact the County
Clerk’s Office of the county in which the business will be located for
registering a trade name. This registration at the county level is
compulsory. The registration protects that name from use by other
businesses within that county. If you are interested in reserving the
trade name in other counties then you must register that name in those
counties as well. To protect the name statewide you should register the
name in each of the State’s 21 counties.
If your
business is going to be a Corporation, a Limited Liability Company
(LLC), or a Limited Liability Partnership (LLP) then you must Register
a New Business Entity with the Division of Commercial Recording, New
Jersey Department of Treasury. You can take advantage of New Jersey’s
easy to use online services to register your business entity by
visiting www.NewJerseyBusiness.gov and clicking on the “Starting a
Business” tab. You can also contact the division directly at Division
of Commercial Recording, PO Box 308, 225 West State St., Trenton, New
Jersey, 08625-0308 or call 866-534-7789.
Registration of the Business
All businesses must “Register for Tax and Employer Purposes” with the
New Jersey Division of Revenue, regardless if they plan on collected
sales tax or having employees. You may now register your business for
taxes and employer contributions for unemployment and disability,
online at www.NewJerseyBusiness.gov and clicking on the Starting a
Business Tab. You may also contact the Division of Revenue, Client
Registration Bureau by calling 866-534-7789.
The IRS will allow a sole proprietorship or a single member LLC with no
employees to use the owner’s social security number for federal tax
purposes. However other business entities and all businesses with
employees are required to obtain a Federal Employee Identification
Number (FEIN) from the IRS. You can obtain a FEIN by filing a form SS-4
with the IRS or by visiting the IRS website at www.IRS.gov.
Taxation
All businesses must pay taxes. When you register your business, the
State of New Jersey will send pertinent forms and information necessary
for compliance with the New Jersey tax laws. It is important to include
either a social security number or a Federal Employer Identification
Number (FEIN) on all returns, checks, and other correspondence sent to
the State of New Jersey.
Local Permits & Other Regulations
All businesses should contact
the municipality and county in which the business is located to
determine if there are any local regulations to which the business must
adhere. Also check whether any permits are required for your business
to operate.
Business Licenses and Certification
Depending on the
nature of your business, the State of New Jersey may require that you
either obtain a license, certification, or registration. The New Jersey
Online License & Certification is available on-line at
www.NewJerseyBusiness.gov.
This site lists various types of businesses and their requirements. You
can also contact the Business Service Call Center at 866-534-7789 to
obtain license/certification information.
Employee Related Issues
If
you have at least one employee, you are required to address the issue
of employer insurance. Information on employer insurance and other
responsibilities can be found at www.NewJerseyBusiness.gov. Just click
on Workforce Training and Programs for a list of Employer’s
Responsibilities. You may also contact the following departments for
information on your insurance responsibilities:
Unemployment Insurance:
If
you have at least one employee, registration is required with the
Division of Employer Accounts, New Jersey Department of Labor and
Workforce Development, PO Box 913, Trenton, New Jersey 08625-0390. For
information in North Jersey call (Newark) 973-648-4109, in Central
Jersey (New Brunswick) 732-418-3331, and in South Jersey (Camden)
856-614-3764.
Workers’ Compensation Insurance:
Information
regarding Workers’ Compensation accidents may be obtained by contacting
the Division of Workers Compensation, New Jersey Department of Labor
and Workforce Development, PO Box 381, Trenton, New Jersey 08625-0381,
609-292-2515. For coverage information, contact your insurance
provider, or the Compensation Rating and Inspection Bureau at 60 Park
Place, Newark, New Jersey 07102, 973-622-6014.
Additional Requirements for Out-Of-State Firms
If you are not located in the State of New Jersey but intend to start
your business here, there are some additional requirements that you
need to fulfill:
Corporations, LLC and Limited Partnerships:
It is necessary to register a new business entity and
register for tax and employer purposes as described in Step 1, but you
will be registering as a “Foreign” Corporation, LLC, LLP or LP.
General Partnerships and Sole Proprietorships:
It is necessary to obtain a “Trade Name Certificate to
Operate” from the Clerk in each county where business will be
conducted. You will also need to Register for Tax and Employer Purposes
as described in Step 1.
Out-of-State Payroll Record keeping:
A permit must be acquired from the Division of Workplace
Standards, Office of Wage and Hour Compliance, New Jersey Department of
Labor & Workforce Development, 609-292-7860.
Information on this website is provided for information purposes only, and its presentation herein neither creates an attorney-client privilege nor constitutes legal advice.
