As one of the smallest states in terms of size, New Jersey may often be overlooked as somewhere to start a business. However, this state is home to a lot of people, with one of the highest population densities in the world. Every day, thousands of people commute from New Jersey to Pennsylvania and New York, using the busy and comprehensive transport system in the state. If you are looking for an ideal place to start a new business, then despite its size, the sheer population of New Jersey along with easy transport to New York and Philadelphia mean that this state could be an ideal choice. There are lots of reasons why you may want to start a business in New Jersey, but before we explore some of the most popular, let’s explore the steps involved in getting started.
Decide on a business name
It’s important to take some time to choose a name for your business in New Jersey. Make sure that it is a name people are going to remember and that it is easy to associate with your company. It is also worth checking the business registry in the state to ensure that you are not using the same name as another business, as this could lead to customer confusion at best and lawsuits in the worst-case scenario.
Choose a legal business structure
Before setting up your business in the state, you will need to decide on how to best structure it legally. Sole proprietorships and limited liability companies (LLCs) are some of the most common, although you can also register your business as either a corporation or a partnership as well. A sole proprietorship is the simplest to set up, although the liabilities are higher as the law views you and your business as one and the same. On the other hand, an LLC might be a better option if you want to keep your personal and business assets separate.
Get business insurance
New Jersey business insurance is a crucial step in setting up your new company in this state. While there is a risk of lawsuits anywhere, the high population density of New Jersey means more people, and more risk of things going wrong. It’s always best to make sure that your business is covered with the appropriate liability insurance from the start, to minimize losses and protect your company financially if anything goes wrong. There are several types of business insurance products available to New Jersey businesses including general liability insurance, product liability insurance, commercial building insurance, professional liability insurance and more.
Register a new business
Before you can start trading, you will need to register your business by filing the formation documents with the New Jersey Division of Revenue. This can be done either by mail or online and costs a one-time fee of $125. You will not be required to register if you are setting up a sole proprietorship. However, in this case you do still need to register with the Division of Taxation and file an Alternate Name for your business if you want to operate under a name that is different from your own.
Reasons to start a business in New Jersey
Now that you have a basic understanding of the steps involved in getting your New Jersey business set up, let’s take a look at some of the main reasons why entrepreneurs choose this state:
Population
If you’re looking for a huge potential customer base, then don’t let the smaller size of New Jersey put you off. New Jersey is a state that maximizes every square foot of land it has, and it is the most densely populated state in the US despite its smaller scale. There are just over one thousand people for every square mile in the state, so no matter where you decide to start your business here, you are going to have easy access to potential customers and employees.
Hiring employees here is often easier compared to in other states as locals would much prefer to find somewhere to work in the state that is closer to home rather than doing the daily commute to New York. There is a thriving community of professionals in the state, which has one of the highest concentrations of scientists and engineers per capita worldwide. Of course, with such a high population around you, there’s also a higher risk of things going wrong, and lawsuits being brought against your business, so getting insured should be one of the first steps you take.
Transport links
The transportation has always been a huge part of the economy in New Jersey, since all the way back in colonial times. New Jersey is well-connected to both Philadelphia and New York City. It is home to one of the most diverse transportation systems around the world. The New Jersey Turnpike has several significant connections to major hubs including the Conrail mainline, the Elizabeth-Port Authority Marine Terminal, the Newark Liberty Airport, and Port Newark.
Economy
New Jersey was at first a state designed to grow as a powerhouse in the manufacturing industry. And today, it is still primarily a manufacturing state, although the jobs in this industry have decreased over time, giving way to service jobs of which there are now around three available to every one manufacturing position. However, the State Division of Economic Development has worked hard to keep the manufacturing industry in New Jersey along with any others. Since it has excellent transportation, larger space, and low tax rates, it’s no surprise that New Jersey has a thriving economy and attracts various industries.
Climate
New Jersey is blessed with a fairly normal climate, and it is rare that the state gets adverse weather that is bad enough to impact the economy. You are unlikely to see weather here that is going to have a negative impact on commuting, transportation, or the electricity supply. Winter weather varies across the state and is colder in the northwest while the south of the state enjoys winters that are fairly mild with temperatures that are unlikely to reach freezing or below. In the summer, there is hot weather across the state.
With a huge population despite its small size, a favourable climate, good transport links and a thriving economy, could New Jersey be the best location for your next business?