Jacqi is a seasoned legal professional committed to simplifying complex legal issues. With her in-depth knowledge of tax laws, she thrives on helping individuals and businesses navigate the maze of financial obligations. Clients trust Jacqi to provid.
Jacqueline Nguyen, Esq. Small Business and Tax Expert WriterJacqi is a seasoned legal professional committed to simplifying complex legal issues. With her in-depth knowledge of tax laws, she thrives on helping individuals and businesses navigate the maze of financial obligations. Clients trust Jacqi to provid.
Written By Jacqueline Nguyen, Esq. Small Business and Tax Expert WriterJacqi is a seasoned legal professional committed to simplifying complex legal issues. With her in-depth knowledge of tax laws, she thrives on helping individuals and businesses navigate the maze of financial obligations. Clients trust Jacqi to provid.
Jacqueline Nguyen, Esq. Small Business and Tax Expert WriterJacqi is a seasoned legal professional committed to simplifying complex legal issues. With her in-depth knowledge of tax laws, she thrives on helping individuals and businesses navigate the maze of financial obligations. Clients trust Jacqi to provid.
Small Business and Tax Expert Writer Kiran Aditham Deputy EditorWith 20 years of experience, Kiran Aditham has navigated the field in editorial and writing, from working with major pubs like Adweek, AdAge and PSFK to now working at Forbes Advisor.
Kiran Aditham Deputy EditorWith 20 years of experience, Kiran Aditham has navigated the field in editorial and writing, from working with major pubs like Adweek, AdAge and PSFK to now working at Forbes Advisor.
Written By Kiran Aditham Deputy EditorWith 20 years of experience, Kiran Aditham has navigated the field in editorial and writing, from working with major pubs like Adweek, AdAge and PSFK to now working at Forbes Advisor.
Kiran Aditham Deputy EditorWith 20 years of experience, Kiran Aditham has navigated the field in editorial and writing, from working with major pubs like Adweek, AdAge and PSFK to now working at Forbes Advisor.
Deputy Editor Brette Sember, J.D. contributorBrette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.
Brette Sember, J.D. contributorBrette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.
Brette Sember, J.D. contributorBrette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.
Brette Sember, J.D. contributorBrette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.
Updated: Jul 26, 2024, 10:50am
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Getty
Home to over 953,000 small businesses, New Jersey is an optimal destination for establishing any venture. Its strategic proximity to the bustling cities of New York City and Philadelphia offers a clear advantage for many businesses. While obtaining a business license in New Jersey may seem daunting, the state excels in simplifying and streamlining the otherwise complex procedure.
A business license is an official document that authorizes a business to operate. The license formally acknowledges that the business meets all the requirements necessary to run its operations. Different levels of government can issue licenses, including federal, state and cities. Several levels of government may regulate certain industries simultaneously.
Businesses must renew their licenses regularly and keep them compliant. If a company fails to obtain the necessary licenses, it could face penalties, fines or even be forced to shut down.
Both business licenses and permits allow businesses to operate legally. While the terms are often used interchangeably, there are differences between the two.
A license allows companies to operate in a specific geographical area. Many industries require a license, but it’s most common for those that directly provide goods or services to consumers. For example, a business selling alcohol might need a license for liquor, and if it is engaged in selling it, such as a brewery, it may need federal and state licenses.
Permits often provide a more specific authorization. Permits are often required for activities that may impact public safety, health or the environment. For example, building permits are required for construction projects, environmental permits may be needed for certain industrial activities and event permits are necessary for organizing public gatherings. Permits may have specific conditions or limitations. They are usually temporary or issued for a specific duration.
Business licenses are issued for several reasons. Business licenses promote responsible business practices. It strikes a balance between promoting economic growth and safeguarding the well-being of society. Here are some of the most common reasons.
Licensing is a regulatory mechanism designed to serve the public interest, uphold standards and ensure responsible business practices. Licensing allows businesses the freedom of conduct while safeguarding society.
Business licenses can be governed by different levels of government, including federal, state and local. Each has its role in the licensing process. Often businesses must meet all three requirements. To avoid penalties or interruptions to their business, owners of businesses must thoroughly investigate all licensing and permit requirements at the federal, state and local levels.
The federal government has an interest in regulating businesses. A federal license is often required in addition to any state or city license. A complete list of the industries regulated by the federal government can be found on the U.S. Small Business Administration website. Below are some of the most common federal licenses:
Each state has its own licensing requirements. State licenses are granted by agencies that oversee specific industries. New Jersey does not have a general business license requirement. Instead, New Jersey has 15 different agencies that regulate businesses in their state.
New Jersey offers an online portal to assist businesses with registration and licensing. This portal makes the process more convenient. It also provides individual assistance through the New Jersey Business Action Center. This office is staffed with advocates who offer guidance in both Spanish and English. You can contact them via phone or live chat.
Local jurisdictions, such as cities and counties, may have their own business license requirements. These can be instead of or in conjunction with a state or federal license. New Jersey has 21 different counties and 564 different cities and each has its own requirements.
The licensing requirements often vary. Some cities require comprehensive licenses for all businesses, while others only issue licenses and permits to specific sectors. For example, Newark does not require a general business license. However, it has over 40 different industry-specific business licenses with fees ranging from $25 for a dog kennel to $1,500 for arcades.
Applying for a business license can be an intricate and time-consuming process due to differing federal, state and local requirements. Limited resources for small business owners can add more complexity to the process. However, business licenses remain essential.
AdvertisementClick on the state below to get started.
Below are the four steps to getting a business license in New Jersey.
Determine the legal structure that will make sense for your business. You can create a sole proprietorship, partnership, LLC or corporation. Each is unique, offering different pros and cons.
Select an original business name to register with New Jersey’s Division of Revenue and Enterprise Services. You also have the option to register an alternate name if you plan to operate in a name different from your own or your business.
You will need to register for an Employer Identification Number (EIN) with the IRS. Acquiring one is relatively straightforward. You can apply online and be approved in seconds. It is used on your business applications.
To receive a Business Registration Certificate, you must complete the NJ-REG with the New Jersey Division of Revenue and Enterprise Services. This registration is essential for tax purposes and allows the state to identify and track businesses within its jurisdiction. NJ-REG also helps businesses identify any licenses or permits necessary to operate within New Jersey.
NJ-REG is often required when starting up a new business in New Jersey. However, it can also be used when there have been changes such as an address change or restructuring of your enterprise. Businesses usually submit this form electronically as it is the quickest way. Once completed, you receive a New Jersey Tax ID number and a Business Registration Certificate.
While New Jersey does not require a general business license, it has over 693 industry-specific licenses and permits. Some of the licenses issued by New Jersey are:
Knowing which license you need can be the tricky part. New Jersey tries to simplify it by offering a personalized portal, the Navigator, to help individuals identify potential licenses. You can also contact them with any questions via phone or live chat.
In addition to the state licenses, each county and city may have additional licenses. A list of all the county and city websites can be found here. Once again, the cities and counties try to make the process seamless. For example, Jersey City has a business licensing portal to help guide you through the licensing process.
Remember to check with the federal government about any additional licenses you may need.
Ensure you are aware of the renewal dates of your license and any compliance requirements. Understanding your license renewal process is mandatory. Some licenses need to be renewed annually, while others are valid for several years.
If you fail to comply with the deadline, you could be subjected to penalties or have your operations suspended. Once you have obtained a license, ensure your business adheres to all applicable laws and regulations. You should also review them regularly to ensure compliance.
