How to Get Business Licenses in New Jersey | A Comprehensive Guide

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New Jersey Business License

Starting a new business is an exciting venture, but it’s essential to understand the various licenses required to operate legally within New Jersey. Forming an LLC in New Jersey requires licenses, as different industries and locations have specific regulations. This article will provide a comprehensive guide to New Jersey Business Licenses, helping you navigate the process and ensure your new venture complies with all necessary requirements. By understanding the permitting landscape in New Jersey, you can ensure that your business is fully prepared to succeed while avoiding potential legal pitfalls.

Webinarcare Editorial Team will help you easily obtain a business license in New Jersey. You must be guided by all the factors gathered in this article.

How to Get a Business License in New Jersey

What is a Business License in New Jersey?

A business license is a legal authorization, permit, or document that allows a business to operate within a specific jurisdiction, such as a city, county, or state. New Jersey business licenses are issued by New Jersey Secretary of State and ensure businesses comply with applicable laws, regulations, and standards in their respective industries.

A business license protects public health, safety, and welfare by ensuring businesses operate responsibly and lawfully. Acquiring a business license often involves registering the business, paying applicable fees, and meeting specific requirements or qualifications for the type of business.

Business licenses can vary greatly depending on the location and nature of the business. Some common types of business licenses include:

1. General Business License: This is a basic license required for most businesses to operate within a specific jurisdiction, such as a city or county.

2. Professional and Occupational Licenses: These licenses are specific to certain industries or professions, such as healthcare, construction, real estate, or cosmetology, and are typically issued by state licensing boards or agencies.

You must have a professional and occupational license to form New Jersey General Partnership and offer your service. 

Here are some examples of Professional and Occupational Licenses:

  • Medical License: Physicians, surgeons, and other healthcare professionals must obtain a medical license to practice medicine in a specific state. The New Jersey medical board issues this license after verifying the applicant’s education, training, and examination results.
  • Realtor License: To become a realtor in New Jersey, you must obtain a real estate license to buy, sell, or lease properties on behalf of clients. New Jersey has its own real estate commission or board responsible for issuing licenses and regulating the industry.
  • Contractor License: General contractors, electricians, plumbers, and other construction professionals must often have a contractor license to work in New Jersey. 
  • Cosmetology License: Professionals in the beauty industry, such as hairstylists, estheticians, and nail technicians, must obtain a cosmetology license to provide services. New Jersey Boards of Cosmetology oversee licensing and regulations for this industry.
  • Certified Public Accountant (CPA) License: Accountants who wish to become a CPA in New Jersey must designate and provide specific services, such as auditing financial statements and obtaining a CPA license from New Jersey’s Board of Accountancy.
  • Architect License: Architects must obtain a license to practice architecture in New Jersey. This typically involves meeting education and experience requirements and passing the Architect Registration Examination (ARE).
  • Attorney License: New Jersey Business Attorneys must obtain a license to practice law in a particular jurisdiction, typically by passing the state’s bar examination and meeting other requirements set by the New Jersey bar association.

3. Health and Safety Permits: New Jersey businesses involved in food service, hospitality, or other industries directly impacting public health and safety may require specific permits from local health departments or regulatory agencies.

4. Environmental Permits: New Jersey businesses that involve activities that may impact the environment, such as waste disposal, air or water emissions, or hazardous materials handling, may require permits from local, state, or federal environmental agencies.

5. Sales Tax License: New Jersey businesses that sell goods or services may be required to collect sales tax from customers and remit it to the appropriate tax authority. A sales tax license is typically required to collect and remit sales tax legally.

New Jersey business owners must research the specific licensing requirements for their business in their jurisdiction and obtain all necessary licenses and permits to operate legally and avoid potential fines, penalties, or legal troubles.

Requirements For Getting Business Licenses in New Jersey

If you start an LLC or any other type of business, you must wait until your New Jersey business registration is complete. Once you have completed the necessary steps to register your business in New Jersey, you must be prepared with the required documents to apply for business licenses.

  • Name of your company
  • Phone number and company address
  • Employee Identification Number (EIN)
  • Your company’s legal structure (Corporation, Partnership, or LLC)
  • Your business strategy, which includes revenues and costs

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How to Get a Business License in New Jersey

To get a business license, you must follow the guidelines below, including determining if your New Jersey business requires a license or permit, identifying the appropriate licensing agencies, researching license and permit requirements, completing and submitting license applications, and maintaining license and permit requirements.

Step 1: Determine The Required License or Permit

The first step in obtaining a business license is determining if your business needs one. Some businesses may not require a license or permit, while others may need multiple licenses depending on their industry and location. Some businesses typically require some form of licensing or permit:

  • Professional services, such as medical, legal, and accounting
  • Food establishments, including restaurants, bars, and catering businesses
  • Retail businesses, including stores, shops, and online retailers
  • Construction and contracting companies
  • Manufacturing and industrial businesses

State Licenses

The licenses that you must get first are the licenses within the state. New Jersey state licenses require individuals or businesses to engage in certain activities or professions legally. The state government issues these licenses and serves as proof that the license holder has met certain qualifications and standards set by the state. The types of licenses vary depending on the profession or activity, including but not limited to healthcare professionals, contractors, real estate agents, and drivers.

State licenses assure the public that the license holder has undergone the necessary training and education to perform their duties safely and competently.

Federal Licenses

Federal licenses in New Jersey are granted by federal agencies and are required for certain activities and industries that fall under federal jurisdiction. These licenses ensure compliance with federal laws and regulations and are necessary for individuals or businesses engaged in the following services.

  • Agriculture: License issued by The U.S. Department of Agriculture
  • Aviation: License issued by The Federal Aviation Administration
  • Alcohol & Tobacco: License issued by The Alcohol and Tobacco Tax and Trade Bureau
  • Ammunition, Explosive, & Firearms: License issued by The Bureau of Alcohol, Tobacco, Firearms, and Explosives.
  • Commercial Fisheries: License issued by The National Oceanic and Atmospheric Administration Fisheries Service
  • Mining & Drilling: License issued by The Bureau of Safety and Environmental Enforcement
  • Nuclear Energy: License issued by The U.S. Nuclear Regulatory Commission
  • Radio & Television (Broadcast): License issued by The Federal Communications Commission
  • Transportation by Sea: License issued by The Federal Maritime Commission
  • Wildlife & Fisheries: License issued by The U.S. Fish and Wildlife Service

Obtaining a federal license in New Jersey involves meeting specific criteria and adhering to federal laws and regulations, which can vary depending on the activity or industry.

City-Based License

City-based licenses in New Jersey are granted by local municipalities and are required for certain activities or businesses operating within the city limits. These licenses ensure businesses comply with local regulations and ordinances and typically cover business operations, health and safety, zoning, and permits.

City-based licenses vary depending on the location and the nature of the business, but examples may include restaurant licenses, liquor licenses, taxi licenses, and street vendor licenses. Obtaining a city-based license in New Jersey involves submitting an application, paying the necessary fees, and meeting specific requirements set by the local government.

Home-Based License

Home-based licenses in New Jersey are required for individuals or businesses that operate from their residential property. These licenses regulate and permit activities conducted within a residential setting, such as home-based businesses or rental properties. Home-based licenses ensure these activities comply with local regulations, building codes, zoning requirements, and health and safety standards.

The specific requirements for obtaining a home-based license in New Jersey can vary depending on the type of activity and the local municipality but typically involve submitting an application, paying any necessary fees, and meeting specific criteria set by the local government.

Professional License

Professional licenses in New Jersey are mandatory for individuals pursuing specific careers or professions that require specialized knowledge, skills, and expertise. The state government grants these licenses and serves to regulate and ensure the competency and ethical practice of professionals in fields such as law, medicine, engineering, teaching, and accounting.

To obtain a professional license in New Jersey, individuals must meet education, experience, and examination requirements specific to their profession. These licenses assure the public that they receive services from qualified professionals and protect consumers from potential harm or malpractice.

Step 2: Identify the New Jersey Licensing Agencies

Once you’ve determined that your business requires a license or permit, you must identify the appropriate New Jersey agencies responsible for issuing these documents. In New Jersey, numerous agencies oversee licensing and permitting, including:

  • New Jersey Secretary of State: This office is responsible for issuing licenses for many professional services, including legal, medical, and accounting.
  • New Jersey Department of Health: Food establishments, healthcare providers, and other businesses related to health and safety may require licenses from this department.
  • New Jersey Division of Taxation: If your business sells goods, you may need a sales tax license or permit from this department.
  • New Jersey Department of Labor: Businesses that involve construction or contracting may need licenses from this department.
  • Local City or County Governments: Depending on your business’s location, you may also need to obtain licenses or permits from your local government.

Step 3: Research License and Permit Requirements

After identifying the appropriate agencies, research the specific requirements for each license or permit your business needs. This may involve reviewing the New Jersey agency’s website, contacting their office directly, or consulting a legal or business professional. Some common requirements for obtaining a business license or permit include:

  • Completing an application form
  • Providing proof of insurance or bonding
  • Passing background checks or inspections
  • Paying application fees

Some licenses or permits may have ongoing requirements, such as annual renewals, inspections, or reporting.

Step 4: Complete and Submit License Applications

Once you’ve gathered all the necessary information and documents, complete the application forms for each required license or permit. Be sure to carefully follow the instructions provided by each New Jersey agency, as incomplete or incorrect applications can lead to delays or denials.

In addition to the application forms, you may also need to submit supporting documentation, such as:

Proof of Business Registration

You can find it on the New Jersey Secretary of State’s website. There should be a search feature specifically for businesses. This will often be labeled “New Jersey Division of Revenue & Enterprise Services“. In the search feature, enter the name of the business you are looking for, and once it appears, you will now have proof of your business registration.

Employer Identification Number (EIN)

Aside from opening a bank account, you must have an Employer Identification Number in New Jersey to file and submit for a business license. An EIN, also known as a Federal Tax Identification Number, is used by the Internal Revenue Service (IRS) to identify your business for tax purposes. You’ll need an EIN to open a business bank account, file taxes, and hire employees. 

The application of an EIN in New Jersey can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

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Proof of Insurance, Bonding, or Worker’s Compensation Coverage

To have a business license, you need proof of insurance, bonding, or worker’s compensation. You need to obtain a certificate or policy document as additional documents for your proof of insurance. Also, there is a database of businesses with worker’s compensation coverage or require businesses to register their insurance or bonding information. Visit your New Jersey Department of Labor, Department of Insurance, or another relevant agency website for information about the business’s coverage.

Professional Certifications or Licenses

As I have mentioned, if you will form a general partnership and offer your service, you must have professional certifications or licenses. 

Submit your completed applications and the New Jersey business license fee, which ranges from $50 – $300. The processing times for license and permit applications can vary, so plan accordingly and allow ample time for approval.

Step 5: Maintain License and Permit Compliance

Once you’ve obtained the necessary licenses and permits for your New Jersey business, it’s essential to maintain compliance with all requirements. This may include:

  • Keep your New Jersey licenses and permits current by renewing them on time, typically annually.
  • Reporting any changes to your business, such as a changing New Jersey LLC address. You may amend your New Jersey Certificate of Formation if you change anything in your New Jersey business.
  • Maintaining proper insurance, bonding, or worker’s compensation coverage.
  • Complying with any inspection, reporting, or record-keeping requirements.

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Additional Considerations

In addition to the steps outlined above, there are a few additional considerations to keep in mind when navigating the New Jersey business licensing process:

  • Licenses and permits are often industry-specific, so research your business type’s requirements.
  • Some businesses may need licenses or permits from multiple agencies at the state and local levels. Be sure to research and comply with all necessary requirements to avoid complications.
  • If your business operates in multiple locations or across state lines, you may need to obtain licenses or permits for each jurisdiction in which you operate. You can form New Jersey Foreign LLC. 
  • Stay informed about licensing and permitting requirements changes, as regulations can change over time.

FAQs

What is a business license?
A business license is a legal document that permits business owners to operate within a specific jurisdiction.
Do I need a business license in New Jersey?
Most businesses in New Jersey require a license or permit to operate legally within the state.
How do I know if I need a license to operate my business?
The requirements for obtaining a license will depend on the type of business you are looking to operate. You can check the New Jersey Department of Labor and Workforce Development website to see if your business requires a license.
Where can I apply for a business license in New Jersey?
You can apply for a business license in New Jersey through the NJ Business Portal.
What is the cost of obtaining a business license in New Jersey?
The cost of a business license in New Jersey varies depending on the type of business and the location. It can range anywhere from $50 to over $5,000.
How long does it take to obtain a business license in New Jersey?
The time it takes to obtain a business license in New Jersey also varies depending on the type of business. Some licenses can be obtained within a couple of weeks, while others may take several months.
Can I get a temporary business license in New Jersey?
Yes, it is possible to obtain a temporary business license in New Jersey if you need to operate your business before obtaining a permanent license. You can apply for a temporary license through the NJ Business Portal.
Can I apply for a business license online in New Jersey?
Yes, you can apply for a business license online through the NJ Business Portal.
What information do I need to provide when applying for a business license in New Jersey?
You will need to provide information about your business, including your business name, location, and type of business, as well as personal information such as your name and contact information.
Do I need to register my business before applying for a license in New Jersey?
Yes, you will need to register your business with the state of New Jersey before applying for a license.
What is the difference between a business license and a permit?
A business license allows you to operate your business legally, while a permit is required to perform certain activities, such as serving alcohol or running a food truck.
What types of businesses require a license in New Jersey?
Most types of businesses in New Jersey require a license, including retail stores, restaurants, and service providers.
Can I transfer my business license to another location in New Jersey?
Yes, you can transfer a business license to another location within New Jersey.
What happens if I operate my business without a license in New Jersey?
Operating a business without a license in New Jersey can result in fines or legal action.
What if I need help with the application process for a business license in New Jersey?
You can reach out to the New Jersey Business Action Center for assistance with the application process.
Do I need a local business license in addition to a state business license in New Jersey?
Yes, depending on the location of your business, you may be required to obtain a local business license in addition to a state business license.
Where can I find more information about licensing and permits for businesses in New Jersey?
The New Jersey Department of Labor and Workforce Development website has a comprehensive list of the types of businesses that require a license or permit to operate in the state.
Are there any specific laws or regulations for businesses in New Jersey that I need to be aware of?
Yes, New Jersey has many laws and regulations that apply specifically to businesses, such as minimum wage laws and workplace safety standards.
How can I obtain a copy of my business license in New Jersey?
You can obtain a copy of your business license in New Jersey through the NJ Business Portal.
When should I renew my business license in New Jersey?
Most business licenses in New Jersey must be renewed annually.
Do I need a federal business license in addition to a New Jersey business license?
No, there is no federal business license requirement. However, depending on the type of business, you may need to obtain permits or licenses from federal agencies.
What is a Certificate of Occupancy in New Jersey and do I need one for my business?
A Certificate of Occupancy is a document that certifies that a building or commercial space meets the local building code requirements and the space is ready to be occupied. Depending on the location of your business, you may need a Certificate of Occupancy before you can get your business license.
Can underage entrepreneurs apply for a business license in New Jersey?
Yes, underage entrepreneurs can apply for a business license in New Jersey, but they may need a guardian or parent to supervise.
Do franchise businesses need to apply for a license in New Jersey?
Yes, franchise businesses need to apply for a license in New Jersey.
Do nonprofit organizations need to apply for a business license in New Jersey?
Depending on the nature of the nonprofit organization’s activities, they may be required to apply for a license in New Jersey.
Can I sell goods online without a business license in New Jersey?
No, selling goods online is considered a type of business, and you will need a license to operate legally in New Jersey.
Are there any exceptions to the requirement for a business license in New Jersey?
Depending on the nature of your business, there may be exceptions to the requirement for a business license in New Jersey. You should check the NJ Business Portal or contact the New Jersey Business Action Center for more information.
How can I renew my New Jersey business license?
You can renew your New Jersey business license through the NJ Business Portal.
Do I need a business license to operate in New Jersey?
Yes, most businesses in New Jersey are required to obtain a license to operate.
What types of businesses need a license in New Jersey?
There are different types of business licenses in New Jersey depending on the business activity. Generally, all businesses in New Jersey need a license or permit to operate legally, but some exceptions exist.
How do I know if my business needs a license in New Jersey?
You can check the State of New Jersey Business License Check online to determine whether your business requires a license.
Where do I apply for a business license in New Jersey?
You can apply for a business license in person at the city or county clerk’s office where your business will be located.
What kind of information do I need to provide to apply for a business license in New Jersey?
You will need to provide personal and business information for the application, such as your name, address, and legal business name.
How long does it take to get a business license in New Jersey?
The processing time for a business license in New Jersey varies depending on the type of license requested and the complexity of the application.
Is there a fee for a business license in New Jersey?
Yes, there is usually a fee for a business license in New Jersey. The fee varies depending on the type of business license.
Do I need a separate license to sell alcohol in New Jersey?
Yes, if you plan to sell liquor, wine, or beer, you will need to obtain separate license(s) from the Alcoholic Beverage Control.
What is a Certificate of Good Standing in New Jersey, and do I need one?
A Certificate of Good Standing is a document that shows that your business is current with all state taxes and filing requirements. Depending on the type of business you operate, you may need one to apply for certain licenses and permits in New Jersey.
How do I obtain a Certificate of Good Standing in New Jersey?
You can apply for a certificate online through the Division of Revenue or in person at the State Treasury Department.
Can I start operating my business while my license application is being processed in New Jersey?
It depends on the type of business you plan to operate. Some businesses may be allowed to operate temporarily while their application is being processed, while others may have to wait until the license is approved.
Question:What is a reseller’s permit in New Jersey, and do I need one?
A reseller’s permit allows your business to purchase goods without sales tax to resell to customers. If you plan to run a retail business, you may need a reseller’s permit in New Jersey.
What is an Employer Identification Number, and do I need one to obtain a business license in New Jersey?
An Employer Identification Number (EIN) is a unique identification number that the IRS assigns to businesses for tax purposes. Depending on the type of business you run, you may need an EIN to apply for a business license in New Jersey.
How do I apply for an EIN in New Jersey?
You can apply for an EIN online through the IRS website or by mailing in Form SS-4E.
How often do I need to renew my business license in New Jersey?
The renewal frequency for business licenses in New Jersey varies depending on the type of license. The period often ranges from annually to every three years.
Can my business be shut down if I do not have a license in New Jersey?
Yes, a business that operates without a license can be shut down in New Jersey.
Can a business license be revoked in New Jersey?
Yes, a business license can be revoked if a business violates the rules and regulations set out by the state of New Jersey.
How can I renew my business license in New Jersey?
You can typically renew your business license in New Jersey by submitting a renewal application and paying the licensing fee before the expiration date.
How can I transfer my business license to a new location in New Jersey?
You will need to notify the proper authority and complete the necessary forms to transfer your business license to a new location in New Jersey.
Can I sell my business license in New Jersey?
No, business licenses are not transferable or sellable in New Jersey. You will need to apply for a new license if you sell your business.
Can I change the business activity listed on my business license in New Jersey?
If you want to modify the type of business activity your license allows, you will need to reapply for a new license covering the new business activities.
What happens if my business expands in New Jersey with new products or services?
If your new product or service is significantly different from what your business license allows, you may need to obtain a new or additional license.
Can I have multiple types of business licenses in New Jersey?
Yes, many businesses have to apply for multiple licenses across a wide range of industries and specializations in New Jersey.
Do I need a zoning permit to open a business in New Jersey?
Yes, you may need a zoning permit if you plan to operate your business in an area with special zoning requirements or if you modify your existing building in areas including hering COVID-19 guidelines.
What are the most commonly requested business licenses in New Jersey?
The most frequently requested business licenses in New Jersey include food handler permits, alcohol licenses, and healthcare provider licenses.
Can I operate a home-based business in New Jersey with a business license?
Yes, you can apply for a home-based business license in New Jersey to operate your business out of your residence.
Can I check the status of my business license application in New Jersey?
Yes, you can check the status of your business license application online through the state of New Jersey portal.

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Conclusion

Obtaining the necessary licenses and permits is crucial in starting a new business in New Jersey. Following the steps outlined in this guide and consulting with the appropriate agencies or professionals, you can ensure that your business complies with all state and local requirements. This will protect your business from legal issues and help establish your reputation as a responsible and trustworthy business operator.

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