Your new business won't be vetted by anyone. It seems no one, Feds or State, don't care if you're legit or not. The county and municipalities also have business registration requirements, but could also care less. No welcoming letter, no packet of information on what to do. Nothing -- except web resources. Everything you need to do to start a business can be done online with a credit card, except your business name registration. You can lie. The only thing they check is your social security number. Oh, you also have to register your commodity codes - i.e. business categories, which could mean anything, and you must fill out a long State questionnaire, the REG-1, but all in all, very easy.
Starting a NJ Business 101: First, Google your proposed business name and make sure its not taken.
Second, any adult can register online with a company name and personal information. First, you will need a Federal EIN, Employer Identification Number, which is free, and also available the same day online. (www.irs.gov -- don't fall for the companies that charge you -- it's free). If your registration is successful, it means the Feds don't know any other businesses with the same name, a good thing.
Third, you register with the NJ Div. of Revenue, pay the fee (up to $250), and you're all set. (www.nj.gov) You also have to register with the NJ Div. of Taxation to charge 7% Sales & Use Taxes on all your invoices, because you must pay tax on your business income, quarterly. Unless your a so called professional, then you don't. Register and they tell you how to pay quarterly, although it could be improved. You can do that online also. Like I said, its easy, especially if you register your business as a Limited Liability Company or Sole Proprietorship, which most people do when starting out. That's one reason there's so many scam artists out there, and why thousands of businesses fail every year.
- In 2009,there were 27.5 million businesses in the United States, according to Office of Advocacy estimates.The latest available Census data show that there were 6.0 million firms with employees in 2007 and 21.4 million without employees in 2008. Small firms with fewer than 500 employees represent 99.9 percent of the total (employers and non-employers).
Bottom line: if you can't figure this all out yourself, you probably shouldn't be going into business. You shouldn't pay anyone to do it for you either, unless you have deep pockets and are lazy, or are starting a big company with employees.
There is a lot of online help available, on how to start and run a business properly. For NJ, just go the official state website (www.nj.gov) and click the "Business" tab at the top. You'll be taken to a page that has tons of information on "Starting a business," "Growing your business, "Licenses and permits," and much more.If you are starting a serious business, it pays to read through it all. It might take you all of half-an-hour. The most important thing to do is click the "Business Checklist" on the left side menu, print it out, and follow it.
Also, there's www.SBA.gov, the U.S. Small Business Administration website. It includes similar information, but much more of it, and on video, and also has tips on getting government contracts or getting a loan. It's almost impossible anymore to get grants for your business. Maybe if you're into renewables or something exotic, maybe. Do NOT pay money for any grant look-up services; there's tons of those services. If you're just a little Internet savvy, you can do it yourself. Bottom line, you won't find much if you're just a run of the mill business. The NJ equivalent is NJ SBDC at www.njsbdc.com, with free info and counseling for start-ups, as well as classes you can purchase.
There's one other basic thing you should do, and that's register your business name with your County Clerk in person. Here in Mercer County, where I've registered both my business names, it only costs $50 per company name, including a notary located there. Its a great protection, and also makes sure no one else has that name. It protects you (by date), if the same name somehow gets registered. As far as your company name goes, you should already have Googled it and gotten your EIN to make sure no one else has it.
Registering as a formal NJ Small Business online is a debatable proposition. Relatively speaking, its expensive: $100 for three years. You do get access to their database, but usefulness is proscribed. It can be helpful getting government bids, since they have set-aside goals. Well, not goals but rather soft "targets," they don't have to adhere to.You will also get access to the NJ Small Business Development Center, free and paid seminars, and free business person-to-person counseling. I didn't find the counseling that helpful, other than to tell me I was on the right track. But they will give you a few good handouts, and their free seminars are worth it.
Another thing you can do is register online for access to all State of NJ bids through email. The State has a lot of Cooperative Purchasing contracts used by counties (21), and municipalities (566), as well. Big audience, but no guaranteed sales. But bidding can be helpful if you're chasing new business, and have the resources to fit their requirements. It doesn't cost anything to register to receive bids by email from the Treasury Division of Purchase & Property. Their website is https://wwwnet1.state.nj.us/treasury/dpp/
The only cost to bid, is the cost of preparation, which you can get back if you win. The documentation requirements for bidding government contracts can be daunting. The requirement for $1,000,000 worth of general liability insurance can be expensive, but you can build that in by hiding it in your bid price. That alone can cost you $10,000, and all NJ contractors have to have it, which is a good thing. You also have to declare any political contributions if your contract is worth $17,500 or more. My advice? Only contribute small sums to candidates or parties. Better yet, do what I do, give them nothing except my vote, and only if they deserve it.
But the most important thing you need, before you do any of this, is to write a simple Business Plan. There's lots of help to do it, but you have to do it yourself. SBA.gov has free videos on it, as well as all other aspects of small business. So there's no lack of excellent resources if you want to start a business.
Good Luck! And I hope you're honest.
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