Online-only businesses generally do not require a specific state license unless you are selling a regulated product or service. The license and certification guide has details on specific businesses: https://www.nj.gov/njbusiness/documents/liccert.pdf. Otherwise, consult with your local municipality for any specific regulations that may be in place.
The first step in starting a business is writing a well-considered, comprehensive business plan. There are resources to provide technical assistance to entrepreneurs to guide them in the writing process. The New Jersey Small Business Development Centers have regional offices that cover every county in New Jersey and provide free, taxpayer-supported assistance to entrepreneurs (see www.njsbdc.com).
Other organizations that provide technical assistance include:
- SCORE: www.sba.gov/tools/local-assistance/score
- Women’s Center for Entrepreneurship (Northern New Jersey): www.wcecnj.org
- LAEDA (Southern New Jersey): www.laeda.com
If you’re looking for an office for your business, keep the following in mind:
Zoning Requirements: Every municipality (City, Township, Borough, etc.) has a Land Use/Zoning Ordinance which regulates the kinds of business activities that are permitted within a designated zone and places restrictions on building on land parcels including building setbacks, building heights, signage, and various other aspects of the land usage. When evaluating a location for your business you should consult with the Zoning Officer to determine the suitability of the site for your purposes and what obligations you will have, including possible Planning/Zoning board approvals. Check with your local or municipal government office to find the relevant contact information.
Building Permits: construction covered under the New Jersey Uniform Construction Code will require a Construction Permit and inspections to ensure that all construction conforms to the relevant construction codes. In many cases architectural plans prepared by a licensed Architect may be required when making an application for a Construction Permit. Business owners should be diligent in preparing a budget for construction costs that includes the necessary professional costs and permit fees.
- Copies of permit application forms can be found at www.nj.gov/dca/divisions/codes/resources/constructionpermitforms.html
Prior Approvals: is it vital that due diligence is used in evaluating any location for a business. Some locations may require additional “prior approvals” before permits or zoning approvals can be obtained due to environmental or other land use concerns. You may require professional assistance in evaluating a site.
Contact your municipality for information on local regulations. General steps required include:
New Jersey Division of Revenue & Enterprise Services (DORES): if you choose to form a limited liability company (LLC) a corporation (Inc.), a Professional Corporation (PC), you must record that new entity with DORES. This is not required for Sole Proprietorships or General Partnerships.
Tax Registration: all businesses (including proprietorships and partnerships) must register for Tax purposes with DORES. Every business that has employees, more than a single owner, or is organized as a corporation must obtain a Federal Employer Identification Number (EIN), commonly referred to as a Federal Tax ID #, from the Internal Revenue Service (IRS).
Trade Names, Alternate (Fictitious) Business Names, Doing Business As (DBA): businesses may operate using a name other than their legal name, if that name has been properly registered. Sole Proprietorships and General Partnerships must register a “Tradename” in each of the County Clerk’s Offices in the Counties where they wish to conduct business. LLCs, Corporations, and other legal entities may register an Alternate Name with DORES. Fictitious names for foreign entities (companies formed outside of New Jersey) are sometimes referred to as a DBA.
- A list of county Clerks Offices can be found at www.nj.gov/state/archives/catcounty.html/.
- Registering a Fictitious Name: www.njportal.com/dor/businessamendments
Mercantile Licenses: many towns require certain businesses to obtain Mercantile or other local business licenses. Check with the Municipal Clerk’s Office to determine your obligation under the Municipal Ordinances. Your Municipal Clerk can be found by contacting your Municipal Government offices.
Sales & Use Tax: Businesses may be required to collect sales tax during a qualified transaction and submit those proceeds to the Division of Taxation. You may also qualify for a Resale Certificate that can be used when purchasing items for resale.
When a New Jersey-based company makes a sale of a product or service subject to sales tax, they are obligated to collect the tax from customers within the State of New Jersey. The business's obligations to collect on behalf of other states will depend on that state’s law. States are now permitted to require some out-of-state sellers to collect sales tax. Therefore, business owners that sell out of state should check the relevant state laws.
Taxpayer Workshops: The Treasury Department’s “Taxation University” offers a workshop series to assist small businesses learn more about their state tax obligations.
Business with employees have certain obligations. Be aware of the following before you hire anyone else to work with you:
- Wage and Hour Compliance: the New Jersey Department of Labor and Workforce Development’s office of Wage and Hour Compliance has requirements for wages, working hours, earned sick leave and other regulations that employers must follow, for more information visit www.nj.gov/labor/wagehour/wagehour_index.html.
- Workers’ Compensation: All employees must be covered by Workers’ Compensation. In addition, any stockholder (owner) of a corporation that works in the business, even if compensation is deferred, must also be covered by Worker’s Comp. This does not apply to the members (owners) of LLCs. See your business insurance agent for information on state-approved workers compensation policies.
Although great efforts are made to keep these guides as accurate as possible, they are primarily for informational purposes. Specific details about your business may require additional or more specialized assistance. You are encouraged to consult with an attorney and accountant for legal and tax advice.