New Jersey has specific legal requirements for businesses.
New Jersey has several specific requirements on businesses based in, or operating in, the state. These include name registration, taxation and licensing. Depending on the nature of the business, specific requirements may apply on a county-by-county basis or across the entire state. Setting up a business in New Jersey also brings with it federal tax requirements.
Names
Except in the case of a sole proprietor trading under their own name, the business will normally need to register its trading name. A sole proprietor or general partnership must do this through the County Clerk's office in the county where they are based, but can apply to register it in other counties to protect the name. A corporation, limited liability company or partnership must register the name on a statewide basis, which can be done through the New Jersey Department of Treasury's division of commercial recording.
Licensing
New Jersey requires more than 200 types of businesses to be licensed, hold a permit or be certified. Some of the most frequently requested licenses are for home improvement contracting, child care centers and limousine and taxi companies. It's important to note that some businesses, such as those in the gambling trade, may need a specific license for individual employees. The state runs an online database detailing the requirements for each type of business and the relevant licensing authority. Many types of business activity also require environmental licensing or permits.
Taxation
All businesses must register with the New Jersey Division of Revenue for tax purposes, regardless of whether they sell to the public or have employees. A sole proprietor or a limited liability company with only one owner and no employees can use the owner's social security number for taxation. All other businesses must get a Federal Employee Identification Number from the Internal Revenue Service. This number is used to identify the business in the tax affairs of any current of future employees.
Out-of-state Businesses
Businesses that are based in other states but will operate in New Jersey must follow special requirements. They must create a specific business entity for operating in New Jersey and register this for tax purposes; this registration will be recognized as a "foreign" business. The business must also get a "Trade name certificate to operate" for each county in which it will operate. The business also needs to get a permit from the New Jersey Department of Labor & Workforce Development to cover its payroll record keeping.
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