The dream of many is to start a business and be their boss. However, how is this accomplished? The adventure of starting a business is a feasible and achievable dream. Sometimes, people start to work for themselves because a hobby or passion became a way to generate a good livelihood. However, many times, such dreams original from a financial crisis, a job loss, or a reaction to market conditions. Reality ends up being a strong motivator for people to create their opportunities. Launching a business in this fashion is often difficult though, and most people must start from the bottom.
When starting a business, entrepreneurs need to consider the entry barrier. How hard is to start the type the type of business that you intend on starting? Businesses with low entry barriers are easier to start, and anyone can probably bring the idea to fruition without much difficulty. Some businesses and industries are subject to greater regulation. If you need to raise money, you will probably need to create an LLC.
However, this also implies that competition will be higher. For example, it is relatively simple for anyone to start a flea market business. Small business owners can obtain self-storage in Clifton, NJ, and store collected merchandise to then sell at a flea market in Edison, NJ. Conversely, high entry barriers make it more difficult for individuals to start a business. Nevertheless, because of the difficulty, competition will be lower. Consider hobbies and look for areas of strength that allow you to create products or services where what you provide is better than what is currently available in the marketplace. Talking to locals and getting a feel for fun things to do in New Brunswick, NJ, for example can give entrepreneurs a better understanding of what their target demographic is looking for.
Once you have an idea for the business, New Jersey can be a great place to solidify the dream. According to the United States Small Business Administration (SBA) Office of Advocacy, New Jersey has 820,303 small businesses, making up 98.3% of all companies that reside in the state. These businesses employ 1.7 million people, accounting for 50.1% of jobs. Professional, scientific, and technical services along with retail trade make up about 25% of the companies that operate in New Jersey. Starting a business in New Jersey, however, will require a bit of patience, and interested entrepreneurs will need to follow some procedures that vary depending on the type of business.
Before registering with local authorities, future business owners need to select a type of business structure for their business. For example, will be business be a C or S Corporation, a Limited Liability Corporation (LLC), or a Sole Proprietorship, among others? Each has a set of advantages and disadvantages. However, experts agree that for tax purposes and protections afforded to the business owners, LLCs and S Corporations are the better choices for small organizations. Once you have selected an organizational structure, selecting a name is the next step. New Jersey requires businesses to register their names with the State of New Jersey Department of the Treasury to complete a Public Record Filing. Prospective business owners will then register their company with the New Jersey Department of the Treasury’s Division of Revenue and Enterprise Service by filling out the NJ-REG application. This division deals with sales and employer taxes and businesses will need to complete the form at least 15 days before commencing operations.
New Jersey businesses must also comply with local ordinances and obtain necessary permits depending on the type of business. Given the level of complexity and the different considerations, the state has set up a website where information for each important section is provided. Users can search for specific steps based on the type of business that they wish to operate. Furthermore, the state requires that employers complete the State of New Jersey New Hire Reporting form for all new employees. Such reports provide New Jersey with the ability to locate individuals owing child support and record income for individuals receiving public assistance. Before opening your doors, make sure you consult with both commercial and personal injury lawyers in New Jersey to make sure that every aspect of your business is covered from a liability standpoint. With the state and local requirements met, businesses can then register with the Internal Revenue Service and apply for a Federal Employer Identification Number (FEIN) online. Once the paperwork is complete, organizations can take advantage of the diversity of the state and the proximity to New York to make a dream a reality.