Starting a business can be a thrilling and fruitful endeavor, but there are many obligations and regulatory criteria that must be met. A sole proprietorship, or company run by one person, is one of the most typical business structures. If you plan to launch a sole proprietorship in New Jersey, you might be wondering whether you need to file a business registration form with the government.
The quick response is that it depends on your company and the kind of job you would be doing. You do not need to register your sole proprietorship with the state if you are conducting business under your legal name and do not hire anyone. However, you must register your firm with the New Jersey Division of Revenue and Enterprise Services if you decide to use a business name.
You will need to submit a Business Registration Application to the state in order to register your business name. The cost is $125, and you can submit this either online or by mail. Your business registration certificate, which you should maintain on hand in case of legal concerns or audits, will be given to you once your registration is accepted.
You must register your firm and acquire all essential licenses and permits for your particular industry. A food handler’s permit and a mobile food vendor license, for instance, are required if you want to start a food truck business. To determine the licenses and permissions you require for your business, the state of New Jersey offers a useful online tool.
Sole owners must pay both personal and business taxes when it comes to taxes. You must apply for a Federal Employer Identification Number (EIN), which is free and available online, from the IRS. This number will be used to open a business bank account, which is not necessary but is strongly advised, and to file your taxes.
You can pay yourself a salary as a single owner, but it’s crucial to keep detailed records and keep your personal and corporate finances separate. In addition, you will be liable for paying self-employment taxes, which cover Medicare and Social Security taxes.
In conclusion, whether you are operating under your legal name or a business name affects whether you need to file a sole proprietorship in New Jersey. You must register with the state and receive all relevant licenses and permits if you decide to conduct business under a business name. You must acquire an EIN as a sole owner as well as pay personal and business taxes and maintain complete records. Even though starting a business can be stressful, by following these guidelines, you can make sure that you are abiding by all applicable local, state, and federal laws.
You must submit a Business Registration Application to the New Jersey Division of Revenue and Enterprise Services in order to register a sole proprietorship there. In addition, depending on the kind of business you run, you might need to acquire particular licenses or permits. However, no particular paperwork is needed to form a sole proprietorship.