New Jersey ranked second in the 2007 State New Economy Index.
Starting a business in New Jersey offers a number of competitive advantages over surrounding states. New Jersey ranked second in the nation in the 2007 State New Economy Index, which measures a state's support for entrepreneurship and the knowledge economy. Additionally, New Jersey has a lower income tax rate than New York for people with an adjusted gross income of under $500,000 per year. New Jersey also offers a number of financing options for new businesses, such as The Edison Innovation Fund for life science and technology companies.
Instructions
1. Choose a name for your new business. Search the New Jersey State Business Gateway Service website to confirm the name is not already in use. You cannot use a name that is the same or confusingly similar to a name already in use in the state of New Jersey.
2. Decide on a legal structure for your business, such as sole proprietorship, limited liability company or corporation. Consult an attorney and a tax accountant if you are unsure which structure is best for your needs. A sole proprietorship is the easiest to set up but affords you no legal protection and can only consist of one person. A limited liability company or corporation is a separate legal entity and can have multiple owners, but each form has different tax implications. In general, a limited liability company is sufficient if you do not need to issue shares.
3. File certificate of formation paperwork with the state. Include details about your chosen business structure and contact information, along with all other required information. Name a registered agent, who is a New Jersey resident who agrees to receive official documentation on the company's behalf.
Register your business name with your county clerk if you have chosen a sole proprietorship, which does not require a certificate of formation.
4. Apply for a federal employer identification number, known as an EIN. Find the form at the Internal Revenue Service website. Submit the form online or by mail.
5. File a business registration certificate, Form NJ-REG, online at the New Jersey Department of Revenue's website in order to withhold, report and pay state taxes. Include your business information and federal EIN number along with other required information.
6. Research whether your particular business type requires a license and/or permit in New Jersey by searching the New Jersey Business Portal website. Businesses that require permits include child care centers, taxi services and shellfish harvesters.
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