Setting up a business in the United States is relatively easy by international standards: a Business Insider poll ranked the US number 11 in ease of starting a business amongst developed nations. Although this is relatively high on the list, there are still many permits and bureaucratic loopholes you need to jump through to start a business in this country. Below is a list of several of the things you will need to start a business in New Jersey.
8 Steps to Set Up an LLC in New Jersey
- Name: If you are starting an LLC, you need to include LLC or L.L.C. in your name. Some words require additional paperwork such as: bank, doctor, or engineer. Words that will confuse your business with a federal agency are restricted. You can do a name search online to see if your name and URL hasn’t already been taken.
- Registered Agent: You must assign a registered agent to send and receive government paperwork on your behalf. They can be a resident of New Jersey or an authorized corporation.
- Articles of Organization: You must submit Articles of Organization with the State of New Jersey. This can be done online.
- Operating Agreement: Although this is not required, it can be helpful in forming working relationships with co-owners.
- Employee Identification Number (EIN): You need to obtain an EIN for tax purposes. It is basically a social security number for your company.
- Permits: There are many different permits on the federal, state, and local level that will be needed to conduct your business. The amount of permits you will need depends on what your business does. Many of the required permits are viewable online. Contacting your local municipality will let you know what permits and local regulations you will have to deal with.
- NJ State tax: You will need to register for Unemployment Insurance tax, and Employee Withholding Tax if you have employees.
- Separate personal and business: You want to open up a new business bank account to separate your company assets from your own. This makes keeping up with your finances and filing taxes easier.
Starting a business can be a stressful and confusing process, and making a registration error could get you into serious legal trouble. There are many resources available to you online and on the phone to help you register, but contacting a New Jersey small business attorney can get you insider information on how to set up your business, avoid breaking business laws, and potential expensive mistakes when starting a business.