The first step towards starting a business involves deciding the legal form of your business. The following are possible scenarios:
A sole proprietorship or general partnership will generally use a "trade name." If you intend to do business under your own name, then no trade name registration is required. Registration is only considered advisable. If you intend to operate a Sole Proprietorship or General Partnership using a business name, then you must contact the County Clerk's Office of the county in which the business will be located for registering a trade name. This registration at the county level is compulsory. The registration protects that name from use by other businesses within that county. If you are interested in reserving the trade name in other counties then you must register that name in those counties as well. To protect the name statewide you should register the name in each of the State's 21 counties.
If your business is going to be a Corporation, a Limited Liability Company (LLC), or a Limited Liability Partnership (LLP) then you must Register a New Business Entity with the Division of Commercial Recording, New Jersey Department of Treasury. You can take advantage of New Jersey's easy to use online services to register your business entity by visiting www·NewJerseyBusiness·gov and clicking on the "Starting a Business" tab. You can also contact the division directly at Division of Commercial Recording, PO Box 308, 225 West State St., Trenton, New Jersey, 08625-0308 or call 866-534-7789.
All businesses must "Register for Tax and Employer Purposes" with the New Jersey Division of Revenue, regardless if they plan on collected sales tax or having employees. You may now register your business for taxes and employer contributions for unemployment and disability, online at www·NewJerseyBusiness·gov and clicking on the Starting a Business Tab. You may also contact the Division of Revenue, Client Registration Bureau by calling 866-534-7789. The IRS will allow a sole proprietorship or a single member LLC with no employees to use the owner's social security number for federal tax purposes. However other business entities and all businesses with employees are required to obtain a Federal Employee Identification Number (FEIN) from the IRS. You can obtain a FEIN by filing a form SS-4 with the IRS or by visiting the IRS website at www·IRS·gov.
All businesses must pay taxes. When you register your business, the State of New Jersey will send pertinent forms and information necessary for compliance with the New Jersey tax laws. It is important to include either a social security number or a Federal Employer Identification Number (FEIN) on all returns, checks, and other correspondence sent to the State of New Jersey.