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    NEW JERSEY BUSINESS REGISTRATION

    New Jersey business registration is beneficial for investors looking to expand their market. To LLCs and other business entities that satisfy specific conditions, the state provides a wide range of business assistance programs and tax benefits.

    The Secretary of State oversees business formation and management in the majority of states. However, the NJ Secretary of State does offer certain information and support through its Business Action Center. DORES, which is part of the NJ Department of Treasury, handles NJ business services.

    KEY REQUIREMENTS FOR NEW JERSEY BUSINESS REGISTRATION

    New Jersey corporation tax

    TIMELINE OF NEW JERSEY COMPANY INCORPORATION

    Incorporation of a Company
    2-4 weeks
    Corporate Bank Account Opening
    2 to 4 weeks

    REQUIREMENTS FOR NEW JERSEY COMPANY REGISTRATION

    Resident director

    Entrepreneurs who incorporate a new limited company in several countries worldwide are legally required by the local authorities to designate a resident director, who may be a foreign national with a valid residency permit or a citizen of that country. It is required that the resident be currently living in the country and have a local address there.

    Directors and shareholders

    According to New Jersey state law, the certificate of incorporation must name at least one director and one incorporator who is at least eighteen years of age. Each director’s name and address must be provided; they don’t have to live in New Jersey.

    Stock

    The total number of shares your company will issue, along with any applicable series and class designations, is required. Additionally, you will specify whether the shares’ designations and relative rights may be altered or divided by the board of directors.

    Registered Agent

    The name and street address of a registered agent in New Jersey are required. All official correspondence from the state will be sent to the registered agent.


    LEGAL FORMS OF THE BUSINESS AVAILABLE IN NJ

    Sole Proprietorship

    In New Jersey, a single person operating a business is “by default” a sole proprietorship. Since the applicant doesn’t need to create different legal documents, register as a corporate entity, or follow particular maintenance guidelines, sole proprietorships typically involve less paperwork. However, sole proprietorships do not provide the applicant with protection from liabilities in the event of a lawsuit or creditors.

    Limited Liability Company (LLC)

    In New Jersey, LLCs are now the most widely used legal structure for startup companies. Generally speaking, the law imposes few formalities on the management of an LLC.

    LLCs must be registered, relevant documents must be executed (for example, Operating Agreement and/or Bylaws, though these are not required under NJ law), and certain maintenance tasks must be handled to ensure that the structure is valid. LLCs also offer a liability shield against lawsuits and creditors and certain tax advantages (the pass-through taxation of a partnership).

    Partnership

    For several owners and operators of businesses in New Jersey, a partnership is the “default” structure. They have fewer administrative requirements than sole proprietorships, but they do not protect the partners from liability in the event of a lawsuit or creditors.

    Corporation

    In recent years, the corporate “C-corp” structure has lost appeal. The corporation form benefits from the liability protection that the LLC form also offers, but the law imposes relatively important formalities (management duties, recordkeeping, voting, meetings, etc.). The corporate form is typically employed when the tax advantages for corporations outweigh the restrictions and rigidity imposed by the law.

    PROS AND CONS OF REGISTERING A COMPANY IN NEW JERSEY

    PROS

    Grow New Jersey Assistance Program new jersey business registration

    Grow New Jersey Assistance Program (Grow NJ)

    Under the Grow NJ program, which is focused on new businesses in New Jersey, businesses can take advantage of tax credits for job creation and retention. The purpose of this incentive scheme is to increase the state’s advantage in the international market. In addition to the bonus credit, which runs from $250 to $3,000 per job per year, businesses may be eligible for tax credits that range from $500 to $5,000 per job, every year

    Sales and Use Tax Exemption Program new jersey business registration

    Sales and Use Tax Exemption (STX) Program

    The Sales and Use Tax Exemption (STX) Program is one of the benefits of establishing a new business in New Jersey. Companies will be entitled to a sales tax exemption if they make particular purchases for the renovation and construction of a new company building or location. The exemption is valid for the acquisition of the project’s necessary building materials, fittings, furniture, and equipment.

    Premier Lender Program

    Premier Lender Program

    If the applicant doesn’t have access to funding sources, starting a new business can be quite difficult. This is where the state of New Jersey can be of assistance. With the “Premier Lender Program,” a start-up business in New Jersey can obtain a loan of up to $2 million or up to $1.5 million in loan guarantees on fixed assets at a reasonable cost.

    Garden State Growth Zone Business Lease Incentive

    Garden State Growth Zone Business Lease Incentive

    This is yet another beneficial program for both startups and existing companies. The Garden State Growth Zone (GSGZ) Business Leasing Incentive (BLI) program provides payments to for-profit and charity organizations alike. The amount reimbursed is based on a portion of the yearly lease payments, and the eligible areas must be between 500 and 5,000 square feet. Five Garden State Growth Zones—Camden, Atlantic City, Passaic, Trenton, and Paterson—offer this scheme.

    Taxation new jersey business registration

    Taxation

    New Jersey is a desirable location for incorporation since it provides numerous tax benefits for enterprises. First off, the state’s corporate income tax rate is quite low. As a result, companies can potentially reinvest and grow by keeping a larger portion of their income. Additionally, New Jersey does not charge sales tax on several necessary services, such as software as a service (SaaS) and cloud-based apps, which can save tech-focused companies a lot of money.

    CONS

    Employee Problems new jersey business registration

    Employee Problems

    To be eligible for unemployment insurance, you must register with the Division of Employer Accounts of the New Jersey Department of Labor and Workforce Development.  In order to protect your employees, you also need worker’s compensation insurance. By registering, you make sure that if you terminate an employee who is eligible for benefits, they will be safeguarded with unemployment benefits. You can also be obliged to offer your workers disability insurance.

    Regulatory Environment Program new jersey business registration

    Regulatory Environment

    New Jersey has a strict regulatory environment. One may need to submit application forms to the relevant State agencies to determine whether the business is subject to various licensing/permittance regulations (Occupational, Environmental, etc.), depending on the industry and the effects of their operations on both employees and the environment.

    Natural Disasters new jersey business registration

    Natural Disasters

    New Jersey is prone to natural disasters such as hurricanes, floods, and snowstorms, which can disrupt business operations and cause damage to property and infrastructure.


    PROCESS OF NEW JERSEY COMPANY FORMATION

    SEARCHING FOR A BUSINESS NAME

    • The applicant must check with the New Jersey  Department of the Treasury to see whether their company name is accessible if they are an LLC, C-Corp, S-Corp, LP, or LLP. When the applicant submits the paperwork for establishing the business, they will reserve the name if it is still available. To formally register the business name, the applicant will require the firm’ Certificate of Incorporation.
    • The applicant can register a business name at their local clerk’s office if they are a sole proprietor or general partnership and do not wish to use the legal name as their company name.

    ESTABLISHING THE BUSINESS STRUCTURE

    • Only an LLC, C-Corp, S-Corp, LP, or LLP must register as a business entity with the Division of Revenue and Enterprise Services of the New Jersey Department of Treasury ( DORES ). The income tax documents the business will need to file for the business will depend on how the organization is structured. Failing to formally establish the company will make it more difficult to file taxes, which could result in more penalties and costs.

    Before forming the business, the applicant must have:

    • The business name
    • Identified  business structure
    • Obtained EIN
    • A business description
    • A business address
    • A registered agent (a person or firm authorized to accept legal paperwork on the company’s behalf. This can be the proprietor of the company or another person, but they must reside in New Jersey.)

    The applicant will receive a Certificate of Formation or Certificate of Authority after forming the company, which will show the Entity ID. A 10-digit identifier called an Entity ID is used to identify the corporate business records. The applicant’s tax records are kept separately from the corporate records, which are preserved in the public domain.

    OBTAINING AN EMPLOYER IDENTIFICATION NUMBER

    Like a Social Security Number (SSN), an Employee Identification Number (EIN) is a nine-digit number used to identify the company. Once allocated, it is never again issued and has no expiration date.

    An EIN is a must for all businesses. To pay staff, submit business tax returns, open a business bank account, or get a loan, the business needs an EIN. The lack of an EIN could prevent the company from properly submitting taxes, which could incur additional costs and penalties.

    The following is necessary in order to obtain an EIN:

    • A company’s chief executive officer (the person in charge of the company)
    • Individual Taxpayer Identification Number (ITIN), Employer Identification Number (EIN), or Social Security Number (SSN) for the principal officer

    The federal Internal Revenue Service (IRS) accepts online, fax, and mail applications for EINs.

    • The applicant may apply online in about 15 minutes, and they will get the EIN straight away.
    • If they are faxing the application, they should put the fax number in bold at the top of the page. Usually,y within 4 days, the IRS will be able to fax the EIN back.
    • It could take two to four weeks to apply via mail.

    REGISTERING FOR NEW JERSEY TAX AND EMPLOYER PURPOSES

    All businesses must register for state taxes with the Division of Revenue & Enterprise Services (DORES) of the New Jersey Department of Taxation (DIT) in order to supply information that will allow the state to calculate the taxes and employer contributions for which the applicant may be liable. Taxes owing to the State of New Jersey could incur penalties and costs if the firm is not registered.

    Make sure to have the following before completing this form:

    • The entity ID is a 10-digit number a company receives at the time of registration (general partnerships and sole proprietorships are exempt from this requirement).
    • The NAICS number (this is an 8-digit number used to classify the business industry in the United States)
    • Information on sales tax collection (this is done through the chosen accounting system, for example, QuickBooks)
    • the anticipated date for workers’ first paycheck deduction (if applicable)
    • mailing address and place of business

    The applicant will be given an NJ Tax ID and a Certificate of Authority to Collect Sales Tax after completing the registration. The 12-digit NJ Tax ID, which serves as the identification when the company pays state taxes, is frequently the same as the EIN with the addition of three more digits.

    Only if the company is collecting sales tax will it receive a Certificate of Authority to Collect Sale Tax, which must be displayed in the place of business.

    TABLE COMPARING DIFFERENT STRUCTURES AND THEIR REQUIREMENTS IN NEW JERSEY

    Structure Paperwork Cost Time
    New Jersey Limited Liability Company Public Records Filing for New Business Entity Operating Agreement IRS Form SS-4: Obtain an EIN Form NJ-REG: Business Registration Form Formation: $125 + optional $25-$1,000 expedite fee + optional $.10/page for a return fax Formation: ~4 weeks. ~8.5 hours for $25 expedited fee. Same-day for $50 expedite fee. ~2 hours for $500 expedite fee. ~1 hour for $1,000 expedite fee.
    New Jersey Corporation Public Records Filing for New Business EntityBylawsIRS Form SS-4: Obtain an EINForm 2553: S-Corp Election, if desiredForm NJ-REG: Business Registration Form Incorporation: $125 + optional $15-$1,000 expedite fee + optional $.10/page for a return fax Incorporation: ~4 weeks. ~8.5 hours for $15 expedited fee. Same-day for $50 expedite fee. ~2 hours for $500 expedite fee. ~1 hour for $1,000 expedite fee.
    New Jersey Nonprofit Public Records Filing for New Business EntityBylawsIRS Form SS-4: Apply for EINIRS Form 1023: Application for 501(c)(3) ExemptionIRS Determination LetterForm NJ-REG: Business Registration FormForm REG-1E: Sales Tax Exemption ApplicationURS Charitable Registration, if applicableNew Jersey Charitable Registration (Form CRI-200 or Form CRI-300R, depending on gross contributions) Incorporation: $75501(c): $275 or $600 IRS feeNew Jersey charitable registration: $30 - $250 Incorporation: ~4 weeks. Expedited processing available for a fee.501(c): 2 weeks to 3 months

    THINGS TO CONSIDER BEFORE REGISTERING A BUSINESS IN NJ

    • After registering the business entity, the applicant has 60 days to register with the NJ Department of Treasury. Submit NJ-REG at least 15 days before the date of the first sale if the LLC will be collecting sales tax. A 12-digit identification number and a Certificate of Authorization for Sales Tax will be issued to the applicant.
    • New Jersey can assist the applicant if they need to set up quickly. For one hour of processing, they can pay up to $1000 to speed up the formation.
    • Annual reports for corporations and LLCs must be submitted to the NJ Department of Treasury. File before the end of the month that marks the registration anniversary. Hence, if the company was founded on March 15, the annual report is due on March 31 each year.
    • Every corporation and LLC needs to appoint a registered agent. Legal paperwork, official notices from the government, and other business-related documents are delivered to a registered agent in New Jersey. If the applicant decides to use a commercial registered agent, ask them for their registered agent number so they may mention it on the paperwork.
    • A company’s directors must be at least 18 years old.

    WHY CHOOSE RELIN CONSULTANTS TO REGISTER A BUSINESS IN NJ?

    Our team of professionals at Relin Consultants is well aware of the legal requirements and regulations in New Jersey. We will help you prepare all the necessary paperwork and assist you in registering your new business in New Jersey smoothly.

    Reach out to us at Relin Consultants for our New Jersey incorporation services.

    FAQs

    In New Jersey, do I require a business license?

    You may need a business license or permit in New Jersey depending on the type and location of your firm services. It is essential to confirm this with the municipality where your business is located as well as the New Jersey Division of Revenue and Enterprise Services.

    When starting a business in New Jersey, do I need a business bank account?

    Although it is not required by law, a well-structured corporate business keeps its personal and business finances separate. Business owners may efficiently track spending, manage money, and take care of tax requirements with the help of a corporate bank account—all while safeguarding their personal assets.

    How frequently do I need to renew my New Jersey business registration?

    Every business in New Jersey, whether it be a corporation or a sole proprietorship, is normally required to file an annual report on the last day of the month in which your business creation was completed.

    After it has been established, how can a New Jersey corporation be terminated?

    Until you take legal action to dissolve it, your corporation will continue to exist—and be subject to taxes and fees, whether or not you are currently running a business. A certificate of dissolution or a similar document must be filed with the New Jersey Division of Revenue and Enterprise Services if you intend to stop doing business as a company.

    Should I register my company in New Jersey?

    A Business registration application must be submitted to the New Jersey Division of Revenue and Enterprise Services (DORES) by any individual, business entity, or organization conducting business in the state.

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