How to Start a Business in New Jersey: A Quick-Start Guide
Thinking about launching a business in New Jersey? You’re in good company. The Garden State is home to a wide range of entrepreneurs—from boutique retailers to tech startups and everything in between. But before you dive into operations or even explore accounting services in New Jersey, it’s important to understand the legal and logistical steps required to get your business off the ground.
This quick-start guide will walk you through the essential requirements to legally start a business in New Jersey, based on the latest information for 2025. Whether you’re forming an LLC or just registering a sole proprietorship, we’ve got you covered.
1. Pick a Business Structure
Your business structure impacts everything from liability to taxes to paperwork. Here’s a quick rundown of your main options:
- Sole Proprietorship – The simplest setup. You’re the sole owner and personally liable for all debts and obligations.
- Partnership – Ideal if you’re starting the business with one or more people. General and limited partnerships are both available.
- LLC (Limited Liability Company) – A favorite for small businesses. Offers legal protection for personal assets and flexible tax options.
- Corporation (C-Corp or S-Corp) – Suitable for larger businesses or those planning to raise investment. Offers the strongest protection but more complexity.
- Limited Partnership (LP) – A mix of active and passive partners, often used in investment ventures.
If you’re unsure which structure works best for your business goals, consider consulting with a legal or tax professional.
2. Choose and Verify Your Business Name
Once you know your structure, it’s time to pick a business name—and make sure no one else is using it. New Jersey provides an easy-to-use Business Name Search tool.
- LLCs and corporations must include “LLC” or “Inc.” in the name.
- Sole proprietors and partnerships operating under a different name must file a trade name registration with the county clerk.
3. Register Your Business
For LLCs, Corporations, LPs, LLPs, and Nonprofits:
- Step 1: File a Certificate of Formation/Authorization with the New Jersey Division of Revenue and Enterprise Services (DORES).
- Filing fee: $125 for most for-profit entities and foreign nonprofits; $75 for domestic nonprofits.
- Step 2: Complete Form NJ-REG to register for taxes.
For Sole Proprietors and General Partnerships:
- File a trade name with the county where your business operates (approx. $50).
- Then file Form NJ-REG online.
Both steps are required before you can obtain a Business Registration Certificate (BRC)—which is necessary for public contracts, grants, and tax credits.
4. Get an Employer Identification Number (EIN)
The EIN is a must for almost all business entities. It’s used to:
- Open business bank accounts
- Hire employees
- File tax returns
You can apply for an EIN for free through the IRS website. Even sole proprietors without employees may benefit from having one.
✅ Paperwork eating your time? Let AI do the heavy lifting. Our platform automates daily tasks while expert accountants ensure everything’s perfect. Break free here.
5. Register for New Jersey Taxes
To register your business for state taxes—including sales tax, payroll withholding, and unemployment insurance—complete Form NJ-REG at least 15 business days before starting operations. This can be done online via the NJ Business Portal. Once registered, you’ll be able to file and remit taxes electronically.
6. Check for Required Licenses and Permits
While New Jersey doesn’t require a general business license for every business, many industries do have specific licensing requirements.
- State-level licenses apply to areas like food services, health care, construction, and more.
- Local permits may be required depending on your business location—think zoning, signage, fire safety, or health inspections.
Check both state and municipal regulations to ensure full compliance.
7. Register as a Foreign Entity
If your business is formed outside New Jersey but plans to operate in the state, you’ll need to file as a foreign business entity. This involves submitting a Certificate of Authority and paying a $125 filing fee. This ensures you’re authorized to legally conduct business in the state.
Summary
Starting a business in New Jersey isn’t just about having a great idea—it’s about following the right steps to build a solid foundation. From choosing your structure and name to filing key forms and registering for taxes, each requirement plays a role in keeping your business compliant and ready for growth. And once you’re officially up and running, services like accounting, tax planning, and business consulting can help you stay financially sound. Whether you’re operating solo or planning to scale, understanding the process early on gives you the confidence to focus on what matters most: building a business that thrives in New Jersey.
Your Books, Automated. Your Questions, Answered.
Manual bookkeeping eats into time you could spend growing your business. Traditional accounting services charge more but still need constant guidance. There’s a better way.
Counto’s modern accounting solution combines AI that learns your business with expert human oversight. Once our system understands your patterns, it handles daily bookkeeping automatically. Professional accountants review everything for accuracy, and you get instant access to your dedicated Customer Success Manager via SMS or phone—no more waiting for answers about your finances.
Join forward-thinking businesses who’ve upgraded to intelligent accounting that adapts to you, not the other way around. Ready for accounting that actually gets your business? Chat with us now, email [email protected], or use our contact form.
Here are some articles you might find helpful: