Starting Your Start-Up Right

In an earlier blog post, I shared my checklist for starting a business, coming from the perspective of both a lawyer and a business owner. The New Jersey Department of State also offers a tax guide for those starting a small business. There are different entity types you may choose, based on legal and financial liabilities, tax laws, partners, etc. I provided a summary of each here. When it comes to business plans or financing or marketing, it’s OK to get creative or follow a non-linear path to your goals. However, there are processes in the formation and running of your business that are non-negotiable. It’s important to start your start-up business the right way.

Taxes - The Unavoidable

You’ve chosen your entity type and you’re ready to register your business. For LLCs, corporations, and limited partnerships, you should first obtain a Federal Employer Identification Number (FEIN or EIN) which will serve as your Business Tax ID for the State of NJ. Partnerships or Proprietorships may use a social security number or EIN. Once you have your EIN, you may proceed to filing a certificate of formation. Finally, you may file for your state taxes. A business that chooses to incorporate also needs to file Form C-100 with the NJ Division of Revenue in Trenton.

Don't Forget Your Local Government

This covers state and federal-level requirements, but your local municipality may also require filings, even if your business is home-based. Further, the type of business you are running may require additional licenses and registrations. For instance, home-based bakers are governed by cottage food laws, which were only recently enacted in New Jersey. New Jersey also requires a food safety management course, such as ServSafe. Incidentally, if you’re pursuing a home-based food business, Forrager is a good resource.

Certificates and Licensure

A number of other business types require additional filings, for example, professionals such as accountants; daycare providers; massage therapists and acupuncturists, and more. Ensuring full compliance is important to avoid any interruptions in the running of your business, especially once you begin serving clients.

Finding a business attorney to guide you through the process of starting and running your business shouldn’t be a painful process. Contact us today to schedule a consultation to discuss your start-up business.