How To Start a Business in New Jersey (2025)

Learn how to start a business in New Jersey in 10 essential steps, from understanding state regulations to securing funding and crafting a solid business plan.

This content doesn’t contain and isn’t meant to provide legal, tax, or business advice.*

New Jersey is the home state of music icon Bruce Springsteen and it has pristine beaches and old-timey boardwalks along the Jersey Shore, but it’s also a great place to start a business.

Known as the Garden State, New Jersey is an ideal spot to start a business because it’s got a little bit of everything—bustling cities, quiet suburbs, and farmland. With a diverse population, tons of economic opportunities, and easy access to major markets like New York City and Philadelphia, there’s room to grow, especially if you’re tapping into niche markets.

Why start a business in New Jersey

The New Jersey business landscape is dotted with small, independently owned businesses and chain stores, and a multitude of industries, from clean energy to manufacturing. Its geography and population has attracted large multinational pharmaceutical companies like Merck and Johnson & Johnson—both headquartered in New Jersey. Renowned universities such as Princeton and Rutgers also call it home.

For these reasons, starting a business in New Jersey, whether you’re selling services or products through a physical shop or website, is a good choice. Parts of New Jersey are near New York City, but commercial real estate is much cheaper.

How to start a business in New Jersey

1. Choose a business idea
2. Name your business
3. Understand financial considerations
4. Choose a business structure
5. Create a business plan
6. Obtain a business license and permits
7. Register your business
8. Examine insurance options in New Jersey
9. Stay compliant with state regulations
10. Market your business

1. Choose a business idea

Developing a business is challenging. To clarify your idea, pick a suitable name and write a business plan to work through potential hurdles.

Ask yourself:

• Is the product or service in demand?
• Does it fill a market gap or solve a common problem?
• Is there a broad customer base?

2. Name your business

There are creative and legal aspects to consider when naming a business.

Once you’ve brainstormed business names and chosen a favorite, ask yourself:

• Does the name explain the business? Does it need to?
• Will potential customers find your business through the name?
• Is it too clever, boring, obscure, or cute?

On the legal side, check the state’s business name search portal to ensure your choice isn’t already registered in New Jersey. This simple search will save you from confusing customers—or worse yet, receiving a cease and desist letter.

If your name meets your creative criteria and isn’t already in use, run it through these final checks:

• Ensure the name meets New Jersey’s requirements: Does the business name include the correct abbreviation or structure designation? If you form a limited liability company or LLC, in New Jersey, the name must include “LLC” or “Limited Liability Company,” e.g.,“Periwinkle Paws LLC.”
• Check that your chosen domain name is available: You don’t want to launch Periwinkle Paws online pet supplies only to discover that www.periwinklepaws.com is already taken. To be safe, register your domain on Shopify or through another service, like Squarespace Domains or GoDaddy, before you launch. Basic domain registration costs around $12 to $20 per year but can be significantly more for in-demand names.
• Determine if the name can be trademarked: Entrepreneurs can apply to the New Jersey Department of the Treasury, Division of Revenue and Enterprise Services for state trademark protection for $50, or the United States Patent and Trademark Commision for federal protection. Registration costs start at $350.

Using a DBA in New Jersey

If you want a public-facing name that differs from your registered New Jersey business name, you must file a doing business as (DBA) form. For example, say you open multiple combination gym/tanning salon/laundromats up and down the Jersey Shore and register your business as “GTL Living and Services, LLC,” but decide to name your first location Seaside Heights GTL. In this case, you’ll need to spend $50 to file a DBA Form C-150G with the NJ Treasury, Division of Revenue and Enterprise Services.

3. Understand financial considerations

Most business owners need capital in the early stages before launch.

There are multiple ways to raise funds, including:

• Applying for a loan through a bank or community development financial institution (CDFI)
• Applying for state and federal grants
• Crowdfunding or raising money from friends and family
• Applying for Shopify Capital funding*

Launching a business can be a stressful time. To prepare, calculate the dollar amount you need to stay afloat—taking rent, insurance payments, utilities, and wages into consideration. Then, budget accordingly.

4. Choose a business structure

Your business’s structure determines your exposure to liability and how the company will be taxed. The four main types of business structures are sole proprietorships, partnerships, LLCs, and corporations.

Sole proprietorships

A sole proprietorship has one owner. The sole proprietor is personally responsible for the business’s debts, liabilities, and taxes. Sole proprietorships are unincorporated.

• Liability: The owner of a sole proprietorship is legally responsible for its debts and liabilities, including those incured by employees.
• Tax: Sole proprietors pay taxes on their business’s profits through their personal tax returns. They file a 1040 Schedule C for business income and expenses, profits, or losses, typically on a quarterly basis. Sole proprietors pay self-employment tax of approximately 15.3%, which includes Social Security and Medicare taxes.

General partnerships

A general partnership is a business owned by two or more people. New Jersey does not require a formalized agreement to form a partnership.

• Liability: In a general partnership, all partners are liable for business debts or liabilities even if only one partner is sued.
• Tax: General partnerships are “pass-through entities,” meaning business profits are taxed as partners’ personal incomes. Partners must file a NJ-1065 form.

Limited liability companies (LLCs)

An LLC is a business entity separate from its owner or owners (called members). If two or more people own an LLC, they create an operating agreement, a legal document outlining the business’s operating procedures. The operating agreement determines what to do if members clash, die, fall seriously ill, or decide to close the business.

• Liability: The LLC structure protect its members and their assets from liability; they’re not personally responsible for debts or lawsuits.
• Tax: LLCs are pass-through entities that can be taxed as sole proprietorships or corporations.

C corporations

C corporations offer the same degree of personal asset protection as LLCs, but are more complicated to run. C corps sell stocks to raise funds, which creates legal and bureaucratic duties to their shareholders. C corps are not pass-through entities; they’re subject to state and federal corporate tax that is separate from their owners’ personal tax obligations. New Jersey’s 2025 corporate business tax rate is 9% on income allocated to the state, although small businesses pay less—7.5% if their net income is $100,000 or less and 6.5% if it’s $50,000 or less.

Getting a federal employer identification number (EIN)

Certain incorporated businesses in New Jersey must obtain a federal employer identification number (EIN) through the IRS online (at no cost). Unless they hire employees, sole proprietors in New Jersey can operate using their Social Security number (SSN) instead of an EIN.

5. Create a business plan

A business plan outlines your business purpose, structure, strategy, and goals. Writing one may also help you identify and prevent risks.

It needn’t be a tome, but a business plan should be easy reading for potential investors or bank loan officers. Using templates and reviewing examples can help you get started.

Basic elements of a business plan include:

• Summary of business: A brief statement describing the business.
• Business structure: Identify if the company will be a sole proprietorship, LLC, or corporation.
• Company description: Describe the nature and intent of the business.
• Market analysis: Explain why your products or services are necessary and why customers will want them.
• Sales strategy: Describe how your marketing strategy and how you plan to sell your goods or services.
• Operations plan: Explain how you’ll manage operations such as staffing and order fulfillment.
• Financial plan: Outline your funding plan and financial projections. Some plans include a recent financial history; others focus on future financing.

6. Obtain a business license and permits

If the state of New Jersey regulates your business, you may need a license, permit, or certificate to operate. Regulations can apply to businesses from restaurants to ecommerce to consultants and onsite inspectors.

A business license grants permission to operate a business within a city or state, while a permit authorizes specific activities within that business, often ensuring compliance with safety, health, or zoning regulations. Essentially, a license allows you to run your business, and a permit lets you carry out certain regulated tasks within it. The New Jersey Business Action Center’s online guide provides a comprehensive list of licenses and permits searchable by profession.

Nearly all food-related businesses must their local New Jersey Department of Health office for licensing and inspections, while locksmiths need a license from the Board of Examiners of Electrical Contractors.

Businesses seeking contracts with local governments, public schools, universities, or other public entities, or that wish to apply for small business grants or tax credits need to register with the New Jersey Division of Revenue for a business registration certificate (BRC).

7. Register your business

Once you choose an available business name and secure an EIN, you can go forward with registering your business in New Jersey. Before registering, have your business name, structure, EIN, description, address, and a registered agent with a New Jersey address ready. Once you complete registration, you’ll receive a Certificate of Formation, which includes a 10-digit Entity ID used for corporate records and to collect sales tax.

The process for registering a business in New Jersey depends on business structure.

• Sole proprietorships, LLCs, general partnerships, and corporations file an NJ-REG tax and employer registration form online.
• LLCs and corporations also file a Certificate of Formation to get an Entity ID at the NJ Treasury. It costs $125.

8. Examine insurance options in New Jersey

Your insurance policy needs depend on the nature of your business. For example, a brick-and-mortar store may require fire insurance, while a delivery business will need auto insurance for its fleet.

In general, all businesses should have liability insurance to protect against lawsuits; policy costs range from $300 to $5,000 per year for small businesses. You might also need:

• Workers’ compensation and employer liability: All New Jersey businesses with employees require workers’ compensation (except those covered by federal programs) and employer liability insurance.
• Health insurance: The Affordable Care Act requires some New Jersey employers to provide health coverage. While the State of New Jersey doesn’t compel businesses to cover it, it recommends they do.

9. Stay compliant with state regulations

Complying with New Jersey state regulations, means regularly filing your business taxes, keeping accurate records, and staying abreast of state laws that affect your business.

You must also keep required licenses or permits up to date. For more information on maintaining business compliance, check out the New Jersey Business Action Center guide.

10. Market your business

Marketing can be a fun part of owning a business, since it combines creative messaging with a dash of sociology and group psychology.

Producing your marketing strategy involves conducting research and asking questions such as: What makes your business appealing to customers over other businesses? How do you want customers to feel when they enter your physical or virtual retail space? Who are those customers, anyway? Ultimately your strategy is a roadmap for identifying, reaching, converting, and retaining customers.

Set up a business bank account

It’s easy to let business and personal finances intertwine in the early days of starting a company. You may be financing the business with your own money and are likely paying yourself from the business revenue.

Opening a business bank account offers a practical separation between your personal and business finances.

Here’s how to open a business account in New Jersey:

1. Choose the right bank
2. Gather required documentation
3. Complete the application
4. Make an initial deposit
5. Set up online banking
6. Order checks and debit cards
7. Maintain accurate records

Choose the right bank

While it’s fine to stick with your personal bank if it offers business accounts, it’s worth reviewing other banks and credit unions for the right fit..

Consider factors like fees, accessibility, and online banking features. Some banks offer specialized services for small businesses such as lines of credit, merchant services, and business savings accounts. Choose the features you like, but also review the bank’s requirements: some accounts require depositing an initial sum or maintaining an ongoing balance. Confirm these balance requirements to avoid penalties.

Gather required documentation

Gather necessary documents, including your EIN, business registration or Articles of Incorporation, and proof of identity. Banks may also ask for a partnership agreement, if applicable, and additional paperwork that verifies your business’s legitimacy.

Complete the application

You can open an account online at most banks, but it’s worth visiting a local branch if you appreciate a personal touch. Provide accurate and up-to-date information to avoid delays.

Make an initial deposit

Some banks require an initial deposit to qualify for an account. If that’s the case, now is the time to make it.

Set up online banking

Setting up online banking allows you to track transactions, monitor your balance, and manage payments wherever you are. Many banks offer mobile apps, so you can review your finances on the go.

Order checks and debit cards

Order a business debit card and checks for purchasing. That being said, it’s best to avoid using the debit card for online purchases, where security risks can arise.

Maintain accurate records

Maintain detailed records of all transactions, including revenue and expenses to stay ahead of tax season, maintain compliance with state and federal regulations, and understand your business’s financial health.

Start a business in New Jersey FAQ

How much is a business permit in NJ?

In the great state of New Jersey, business permits range from $75 to $125 in 2025.

What is the difference between a permit and a business license?

A business license authorizes operating a specific type of business in your city or state. A business permit, on the other hand, is authorization to carry out specific activities or operations, often related to safety, health, or zoning regulations. In other words, a business license lets you run your business, while a permit allows you to conduct specific business activities.

Is it legal to run a business from home in NJ?

It is legal to run a business from home in New Jersey, but always double-check local regulations and zoning rules to ensure your specific business is compliant.