When starting a small business in New Jersey, there are a few key steps to follow in order to make the process quick and easy. First, it is important to choose the right business structure. There are several options available, each with its own benefits and drawbacks. Once the business structure has been chosen, the next step is to obtain the necessary licenses and permits. Depending on the type of business, this may require different steps. Finally, it is important to register the business with the state. This can be done online or by mail. By following these simple steps, you can start a small business in New Jersey quickly and easily.
Choosing which business to start
The first step to starting a business in NJ is choosing the right business or industry. Consider the products or services you want to offer, the target market for your business, and your own skills and experience. There are a number of resources available to help you research different industries and businesses, such as the U.S. Small Business Administration’s website.
In addition to the above-mentioned considerations, you should also think about:
- Business Location
- Conducting Market Research
- Assessing Marketing Channels
- Building a financial plan
Choosing the right business structure
Once you have decided on the type of business you want to start, the next step is to choose the business structure that best suits your needs. The most common business structures are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.
Sole proprietorships are the simplest and most common type of business structure. They are owned and operated by one person, and there is no distinction between the owner and the business. This means that the owner is personally liable for all debts and obligations of the business.
Partnerships are similar to sole proprietorships, but there are two or more owners. Partners share equally in the profits and losses of the business, and they are also personally liable for all debts and obligations of the business.
Limited Liability Companies (LLCs)
Limited liability companies (LLCs) are a type of business structure that offers limited liability protection to its owners. This means that the owners are not personally liable for the debts and obligations of the business. LLCs can be owned by one or more people, and they offer flexibility in how the business is managed and operated.
Corporations are owned by shareholders, who elect a board of directors to manage the business. The shareholders are not personally liable for the debts and obligations of the business, but the corporation itself is responsible for its own debts and obligations.
Why does business structure matter?
One primary reason is that the type of business structure you choose will determine the licenses and permits you need to obtain.
Sole proprietorships and partnerships generally do not need to obtain any special licenses or permits, but there are some exceptions. For example, if you plan to sell food products, you will need to obtain a food handler’s license.
LLCs and corporations must obtain a business license from the state.
Register Your Business with the State
Once you have chosen your business structure and obtained the necessary licenses and permits, the next step is to register your business with the state. This can be done online or by mail.
You will need to provide the following information (and more) when registering your business:
- The name of your business
- The type of business you are starting
- The address of your business
- The names and addresses of the owners of the business
- The name and address of the registered agent for the business
After you have registered your business in NJ, you will need to obtain a business certificate or license from the municipality in which your business is located.
However, it is important to note that you can start a business in NJ, but incorporate it in an entirely different state.
Why start a business in NJ?
There are many reasons to start a business in the state of New Jersey. NJ has a diversified economy with a variety of industries, and it is home to many large businesses and corporations. NJ also has a highly educated workforce, and the cost of living is relatively high.
What should I do next to start my business?
Once you’ve done your preliminary research, you can choose to use a variety of online platforms to assist you with the business formation process. The positive of using these platforms is that they are generally on the cheaper side – however, they lack the necessary assistance you may need if starting a more complex entity.
If you find yourself looking to start a business in New Jersey, contact the experts at BSM Accounting Services and we will help set you up, the right way.