So, you’ve finally decided to take the plunge and start up the new company you’ve been dreaming about for years. Great! But before you can start operating as a business, you need to take some initial steps to formally start up your company.
Each state has its own guidelines for establishing a company. Here’s what you need to know about the steps for starting a business in New Jersey:
- Determine your business structure: The first step in starting a business is to determine the formal structure you’ll use to operate it. There are a few main options to choose from. A DBA is a different name you use to operate as an individual. It’s not technically a separate structure, but it does clarify the name of your company. A corporation is an entity that offers liability protection to owners, and it features shareholders, officers and directors. Normally companies incorporate after they’ve achieved a certain level of growth. A limited liability company (LLC) is your best bet when you’re first starting out—it’s a separate entity that offers liability protection, with less complexity than a corporation and no need for directors or officers.
- Business name: Select your official business name. Make sure it doesn’t violate any trademarks or copyrights—you can check with the U.S. Patent and Trademark Office. Do a quick web search as well to make sure your company name is available and that it won’t be easily confused with other businesses.
- Register: The next step is to officially register your company. This process varies based on your business structure. If you’re starting an LLC, you’ll need to complete a public records filing form, hire a professional registered agent and file a Certificate of Formation with the Division of Revenue and Enterprise Services. You’ll also need to hold an Organizational Meeting, even if your LLC only has one member.
- Get a federal employer identification number (EIN): Once you’ve registered your business, you can apply with the IRS online to obtain an EIN. This is basically your company’s Social Security number. It is required for you to operate as an LLC or corporation.
- Open bank accounts: Open up bank accounts solely for your company. You don’t want to mix your personal and business finances, and you can only open up business accounts once you have an EIN.
- Get licenses and permits: If you need licenses or permits to operate your company, you can now take the opportunity to take out those licenses and permits in the name of your business. This will usually involve registering for state taxes and permits as well.
- Comply with other requirements: Business owners will need to continue to file annual reports for LLCs once a year around the anniversary of their formation. You will also need to file annual franchise taxes. LLCs do not need to pay income taxes, but their members do.
For more information about starting a business in New Jersey and what business registration in New Jersey looks like, contact the experts at Kedean’s Generation today.
Categorised in: Starting a Business