The Garden State loves small businesses! Over 953,000 small businesses are working in New Jersey as of 2022—about 99% of all businesses in the state.
Ready to get to work? There are several steps to start and grow a New Jersey business, from the prep work that sets you up for success to protecting your finances with Errors and Omissions insurance and other forms of coverage.
Let’s dive into how to open a business in NJ.
1. Research and planning
Creating a successful New Jersey startup takes strategy. Doing some research could help you plan and set goals for your business.
- Research the market – You might have a great business idea, but may be in the wrong area to execute it. Researching the market can help you understand how your business will fit into your local community. You might want to research the need for your products or services and who your direct competitors will be.
- Refine your idea – Market research can help you make your original business idea even better! Consider products or services that your competitors aren’t offering. If they fit your skills and business model, you may be able to set yourself apart from your rivals in a big way.
- Write a business plan – With an idea and research, you can begin to set short and long-term goals for your business. A business plan is like a roadmap, helping you organize your business and track your success. You may need a formal business plan to apply for a business loan or attract investors.
2. Banking and finance
Accounting is a challenge for many small business owners. However, establishing business bank accounts is an essential step for starting a business in NJ. You may also want to secure more funding to help you get off the ground.
- Get an EIN – You may need an Employer Identification Number (EIN) to run your business. EINs are issued by the IRS, and may be necessary if you hire staff or to open a bank account for your business.
- Open a business bank account – Sole proprietors aren’t typically required to have separate bank accounts. However, it may be wise to keep your personal finances apart anyway. A dedicated business bank account makes if easier to track the money going into and coming out of your business. It may also simplify filing your taxes.
- Register with the Department of Revenue and Enterprise Services (DORE) – New Jersey startups must register with DORE to collect sales tax and employer withholding tax (if you have employees).
- Find funding – There are many ways for small businesses to get extra funding for launch. Business loans and grants are two common options. You might also look for investors who are willing to front you the money needed to get started.
3. Register your business
Starting a business in NJ may mean taking steps to ensure you are following specific state laws.
- Choose a business structure – There are several business structures that New Jersey business owners may choose. Sole proprietorship in NJ is a popular option for one-person operations. If you decide to form an LLC (limited liability corporation), you may need to take additional steps to register your business.
- Register your business name – New Jersey startups can use the state’s business name portal to see if a name is available. You can then register an available business name at the county clerk’s office where your business is located.
- Get necessary permits and licenses – New Jersey does not require a statewide general business license. However, you may need a professional license or permit to work in the state (depending on what you do and/or sell).
4. Protect your small business
Starting a small business in New Jersey takes time and effort. Protecting your hard work might be important to you.
- Identify your business risks – There are many risks that could make it difficult, if not impossible, for you to continue business as usual. Make a list of the unique risks that your business may face, such as damage to customer property, document errors, or workplace injuries.
- Create a risk management plan – Once you’ve written down potential business risks, you can consider taking steps to avoid them. This may include locking up customer property in your custody, creating a checklist to look for mistakes in your work, or training staff on workplace safety.
- Consider business insurance – Even with the best risk management plan, accidents may still happen. That’s why you might consider different types of insurance, such as General Liability and Errors and Omissions insurance.
Grow a New Jersey business that thrives!
Starting a new business in in New Jersey takes time and effort. However, your hard work may soon pay off. You could have a successful business that takes the Garden State by storm!
Want business insurance for New Jersey startups? BizInsure can help.
We understand the needs of small businesses, from accountants and contractors to engineers and personal trainers. We have excellent coverage options, including:
- General Liability
- Errors and Omissions insurance
- Business Owner’s Policy
- Workers’ Compensation
Compare quotes online from A-rated insurers and get instant coverage for your business. It only takes about 10 minutes from start to finish and your policy documents will be sent straight to your inbox.
**This information is a general guide only and does not take into account your objectives, financial situation or needs. Always check with your local licensing board when getting or renewing your electrician’s license to ensure you are meeting their current licensing requirements.
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