Whether you are an electrical contractor or a restaurant owner, it can be exciting to start your own business in New Jersey, but you'll need to do the necessary legwork to ensure you're operating legally. Depending on your business type and locale, you may need to obtain a license or permit for compliance, credibility, and smooth operation in the Garden State. Where you get your license will hinge on your business type.
Do you need a business license in New Jersey?
If you’re starting a business in New Jersey, you do not need a general business license. However, some businesses may need to obtain a license or permit depending on the industry and the county or city where the business is located.
Licenses and permits can be required federally or at the state, county, or city level. Businesses can have a license, a permit, or both. For example, licenses are required for businesses in regulated industries, such as healthcare, legal services, and construction. Those that engage in public safety, health, or the environment, such as restaurants, food trucks, or the handling of hazardous materials, will need a permit to operate.
New Jersey state business license
New Jersey companies are not required to have a general business license, but some may need to apply for one through a state or local agency—this will depend on their business type. There are several separate state agencies regulating different business sectors in New Jersey. You can find information on licensing you need through Navigator, the state’s web portal for setting up your small business.
New Jersey businesses must have a Business Registration Certificate (BRC). Corporations, limited partnerships, LLCs, and limited liability partnerships will get theirs from the N.J. Department of the Treasury, while other business structures must register their business locally if they have a trade name. Businesses may also have to fulfill more than one licensing and registration requirement.
Most companies in the state must also complete a tax/employer registration (NJ-REG) with the New Jersey Division of Revenue and Enterprise Services (DORES).
Local licensing requirements
Businesses may also have to get a license to operate in their New Jersey county or city. This will vary from place to place and also depends on the industry the business is in. Check with your city or county offices for these requirements.
Federal licensing requirements
Businesses that the United States government regulates need a federal license or permit to operate in New Jersey. These include companies involved in agriculture, aviation, alcohol, firearms, ammunition, broadcasting, fisheries and wildlife, mining and drilling, nuclear energy, and transportation and logistics. License requirements and fees vary depending on the business activity and issuing agency.
How to get a business license in New Jersey in 5 steps
When starting your business, there are a few simple steps you'll need to take before you can get your New Jersey business license.
Step 1: Solidify your business
Solidify your business structure, then research and choose your business name. Make sure it complies with New Jersey naming rules. If it does, reserve it before someone else can take it.
Next, you'll need to register the business. Corporations (for-profit and nonprofit), limited partnerships, LLCs, and limited liability partnerships will do so with the New Jersey Department of the Treasury, while sole proprietors and partnerships register their trade names in the county where their business is located.
Step 2: Obtain an EIN
You'll need an employer identification number (EIN) from the Internal Revenue Service (IRS) if you plan on hiring employees or if the business structure requires it. (A sole proprietor without employees can use their Social Security number or SSN.)
Your business may also need an EIN to file federal tax returns, establish a line of credit or loan, or open a business bank account. You can apply online through the IRS website, by fax number, or by mail. An EIN is free, or LegalZoom can set one up for you.
Step 3: Get your business license through state agencies
There's no centralized agency to get a state business license, but New Jersey regulates a number of industries at the state level. For example, electrical contractors get their license from the New Jersey Division of Consumer Affairs, while an adult day care business gets theirs from the New Jersey Department of Health and Senior Services.
Step 4: Get local licenses or permits
Depending on the nature of your business, you may need a local business license or permit to operate. Contact your local Small Business Administration office, local Chamber of Commerce, or city or county offices for more information about their requirements.
Step 5: Apply for federal licensing (if necessary)
If your business is regulated at a federal level, you'll need a federal license to operate in New Jersey. Licensing comes from different agencies and depends on your business type. For example, if your business is agriculture, you'll get a business license through the U.S. Department of Agriculture. If you sell firearms, your federal license will come from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
After getting your New Jersey business license
After you receive a business license, it should be prominently displayed at your place of business as required by law. Make sure to remain compliant with government requirements and follow any local laws.
Many New Jersey business licenses require renewal every few years to remain valid. If you're uncertain whether you need to renew yours, reach out to the agency that issued your business license for clarification
Getting a N.J. business license the easy way
Getting a New Jersey business license is relatively easy to do on your own, but you can also fast-track the process through LegalZoom's business license report and management service. We simplify the process of finding the business license, permit, and registration information you'll need to operate legally in the Garden State and keep you informed about renewals.
FAQs
What should I do before getting a N.J. business license?
Before getting a business license, you must register your business in New Jersey. Start by using our business name search tool to make sure the name you want is available. If your business name is available, reserve it before another business gets it.
Next, obtain an EIN from the IRS. All businesses must register with the New Jersey Department of Taxation's Division of Revenue & Enterprise Services (DORES) to determine the taxes and employer contributions it is responsible for.
Once you fulfill these requirements, you'll receive a business registration certificate, and you can apply for a business license if you need one
How much is a business license in New Jersey?
With no general business license required in New Jersey, the cost of obtaining one can vary. Each state agency has specific license or permit requirements—for example, the New Jersey Department of Environmental Protection has a fee structure different from the New Jersey Department of Consumer Affairs.
How long does it take to get a business license in New Jersey?
As with cost, the amount of time it takes to get your business license or permit varies, depending on the jurisdiction or agency through which you applied. It may take several weeks for you to receive your license.
Do I need a business license for a sole proprietorship in New Jersey?
A sole proprietorship operating in New Jersey does not need a business license. However, depending on your business type and location, there may be other licensing and permitting requirements.
Can I transfer my New Jersey business license to a new owner?
In some instances, you can transfer a New Jersey business license to a new owner. Again, this depends on the business type, location, and issuing agency.