New Jersey Enterpreneur - Small Business, Entrepreneurs and Venture Capital

State of New Jersey
(www.state.nj.us)

Compliancy requirements vary by business structure, industry and busiiness location, and therefore, it is strongly recommended that each business owner review their particular business' obligations with their attorney and/or accountant.

Initial Contact

The State of New Jersey provides a number of ways for the business owner to access state resources for businesses and to stay compliant with state regulations. First, the above web address is the home page for the state of New Jersey which provides a broad resource for learning about New Jersey. The web address www.state.nj.us/njbgs links to the New Jersey Business Gateway Registry Services that offers very specific information for New Jersey businesses. In addition, the State of New Jersey has a new web site that serves as a centralized resource for business: www.NewJerseyBusiness.gov .  This Site covers State contracting, econonic growth, international trade, business programs for women and minorities and more.  If you are looking for more information, you may call the Business Services Call Center at 1-866-534-7789.

Within the New Jersey Business Gateway Services (NJBGS), "The New Jersey Complete Business Registration Packet" may be downloaded or obtained by calling the Client Registration Bureau at 609-292-1730. The Packet provides forms for registering the new business in New Jersey. Registration is mandatory and serves to prompt State agencies to forward further information necessary for the business to stay compliant within the state.

Determining Registration Requirements
The business structure and business name will determine registration requirements. A business conducted as an individual and under the individual?s own name does not require registration. However, a sole proprietorship or general partnership that uses a trade name or has “Company” or & “& Co.” in its title must register with the County Clerk in the county or counties in which business will be conducted. A corporation, limited liability corporation, limited partnership or limited liability partnership must register with the State.

Name Availability
Before initiating any of these forms at the state level, the business to be incorporated must choose a name that has not been previously registered with the State. Name availability may be checked for a fee by calling 609-292-9292 and the fee amount is tied to the number of names checked to identify one that is available. The name may then be reserved for 120 days at cost of $65.

Reserving a name may be part of the planning process of starting a business that enables the entrepreneur to lay a foundation during a pre-incorporation phase without some of the burdens that incorporation places on the new business.

Registration Forms: Public Records Filing & NJ-REG

The "New Jersey Complete Registration Packet" provides forms, two of which are required for virtually all business startups for registering within the State. They are: The Public Records Filing and NJ-REG.

 The"Public Records Filing for New Business Entity” establishes the business entity for corporations, limited liability companies, limited partnerships and limited liability partnerships. This recording serves as the original certificate of incorporation, formation, registration or authority for the new entity. The costs for filing this Form are $125 for for-profit organizations and $75 for not-for-profit organizations. Questions regarding the Public Records Filing may be directed to the Client Registration Bureau at 609-292-1730.

The Public Records Filing must be completed first, and NJ-Reg must be completed within the next 60 days. Both must be completed prior to the business? first sale requiring collection of Sales Tax.

NJ-Reg is the primary state registration form and must be completed after the Public Records Filing and within fifteen days prior to business being conducted. It is required of all business structures with the exception of the individual conducting business in his or her own name. This registration will start an interface with state tax authorities that will forward further information regarding tax compliance. Questions regarding NJ-Reg may be directed to the NJ Call Centre at 609-292-9292.

Filing the NJ-Reg initiates requirements by three New Jersey agencies:

• Division of Taxation for employer withholding oof gross income tax, sales tax and others
• Division of Employer Accounting in the Department of Labor for unemployment and disability insurance
• Secretary of State for public records filing, if needed.

Other Areas of Compliance

Employment

Once a business hires an employee, a fair amount of recordkeeping is required by the Federal and State governments.. The State issues guidelines for adhering to regulations associated with having employees in Bulletin Misc-1 titled "Employer Responsibilities" which is very detailed about processes to be followed.

As each new employee is hired,  the New Hire Form must be forwarded that is in the Business Registration Packet. This Form provides information to the State to track down individuals who owe child support. This requirement may be met by using Federal Form W-4 in its place.

The employer is also responsible for completing an Employer Eligibility Verification Form (I-9) that is required by the Immigration and Nationalization Service (INS). The Division of Employer Accounting (prompted by the NJ-REG filing) oversees Unemployment and Disability Insurance.  Request the "Employer Handbook for Unemployment & Disabilitiy Insurance" which details requirements for employer recordkeeping and how the benefit process works for both employer and claimant.

Workmen?s Compensation is also required and you should contact your insurance broker for coverage relative to your business and industry.

Key Contacts:

• Employer Hotline: 800-357-2099
• NJ Division of Unemployment and Disability Insurance: 609-292-0695
• Division of Workmen?s Compensation: 609-292-2515

Specialized Industry Requirements
The Tobacco and Fuel industries are examples of highly regulated industries. The Registration Packet also contains a license applications pertaining to them. New businesses, especially manufacturing, should be aware of OSHA regulations, the Occupational Safety and Hazard Administration which overseas workplace compliance.

Tax Compliance

Income Tax
The business structure will also determine tax compliance, as well. An individual conducting business under his or her own name reports business income through personal tax returns, while general partnerships use _________________, and incorporated businesses use CBT-100 which coincides with the filing of Federal business returns.

In addition to choosing the type of business classification (corporation, partnership, etc.), the new business owner also has the option of electing a Subchapter S status for its incorporated business, which is a tax filing status with unique advantages. This must be done in conjunction with a Federal Sub S election and must be done within a relatively short time frame from date of incorporation.

Note: S Corporations must have calendar year end financial filing, while C Corporations are permitted to choose their fiscal year end.

Sales Tax
If a business will be re-selling product or services, they need to obtain a Sales Tax Exemption Certificate that exempts them from paying sales tax on purchases, but will require them to collect and remit sales tax to the State. This form is given to suppliers at the time of purchase. Remittances may be set up on line at www.state.nj.us/treasury/taxation/online.htm. The State Tax Customer Service Center may be reached at 609-292-6400.