Starting a Business in NJ: The Complete Tax Registration Checklist
- Gregory Monaco, CPA
- Dec 27, 2025
- 4 min read
Starting a business in New Jersey requires completing federal and state tax registrations before your first sale. This guide provides a step-by-step checklist covering EIN application, NJ-REG filing, sales tax registration, and employer requirements—all the registrations needed to operate legally in New Jersey.
Step 1: Get Your Federal Employer Identification Number (EIN)
An EIN is your business's federal tax identification number, similar to a Social Security number for your company. Most businesses need one, and it's required before opening business bank accounts.
Who Needs an EIN
All businesses with employees
Partnerships and multi-member LLCs
S-Corps and C-Corps
Single-member LLCs (optional but recommended)
Sole proprietors (optional but useful for banking)
How to Apply
Online: Apply at IRS.gov (free, instant approval)
Mail/Fax: File Form SS-4
Step 2: Complete NJ Business Registration (NJ-REG)
NJ-REG is New Jersey's unified business registration form that covers multiple tax types in one filing. This single form registers you for your NJ Tax ID, sales tax, employer withholding, and other applicable taxes.
Critical timing: NJ-REG must be filed at least 15 business days before you begin doing business in New Jersey.
What NJ-REG Covers
Business name registration
12-digit NJ Tax ID
Gross Income Tax withholding (if you have employees)
Sales and Use Tax (if selling taxable goods/services)
Corporation Business Tax (if a corporation)
What You'll Need
Federal EIN
Business entity documents (Articles of Organization/Incorporation)
Owner/officer information
Registered agent with NJ physical address
Business address and contact info
Description of business activities
Anticipated start date
Cost: Free
Step 3: Obtain Your Business Registration Certificate (BRC)
The Business Registration Certificate is your official confirmation of NJ business registration. New Jersey law requires you to prominently display this certificate at your place of business.
How to Get It
Automatically issued after NJ-REG approval
Print from your NJ Premier Business Services (PBS) account
Additional copies available online
Step 4: Register for Sales Tax (If Applicable)
If your business sells taxable goods or services, you must register to collect NJ sales tax and obtain a Certificate of Authority before making sales.
Who Must Collect NJ Sales Tax
Retailers selling tangible personal property
Certain service providers (repair, cleaning, digital streaming, interior design)
Online sellers meeting NJ economic nexus thresholds ($100,000 revenue OR 200 transactions)
NJ Sales Tax Rate: 6.625%
Step 5: Register as an Employer (If Hiring)
If you plan to hire employees, you must register for employer tax obligations with both federal and state agencies.
Federal Requirements
Set up EFTPS account for federal tax deposits
Register for federal employment taxes
NJ Requirements
NJ Employer Withholding (included in NJ-REG)
Unemployment Insurance (UI) registration
Workers' Compensation insurance
Step 6: S-Corp Election (If Applicable)
If your business is structured as an S-Corporation, you must file separate elections with both the IRS and New Jersey. The federal election does not automatically apply to NJ.
S-Corp Election Requirements | ||
Agency | Form | Deadline |
IRS (Federal) | Form 2553 | March 15 for calendar year entities |
NJ Division of Taxation | Form CBT-2553 | Must be filed separately |
Complete NJ Business Registration Checklist
Before Starting Operations
Choose your business name and check availability
Apply for EIN at IRS.gov
Set up EFTPS account for federal tax deposits
Complete NJ-REG (at least 15 business days before starting)
Receive 12-digit NJ Tax ID
Print and display Business Registration Certificate
Receive Certificate of Authority (if collecting sales tax)
File Form 2553 with IRS (if S-Corp)
File Form CBT-2553 with NJ (if S-Corp)
After Starting Operations
Collect and remit sales tax (if applicable)
Run payroll and withhold taxes (if applicable)
Make quarterly estimated tax payments
File quarterly payroll returns
Maintain proper records
File NJ Annual Report
Ongoing Filing Deadlines
Monthly/Quarterly
Payroll taxes (941, NJ-927)
Sales tax returns (monthly or quarterly based on volume)
Estimated tax payments
Annually
W-2s to employees: January 31
1099s to contractors: January 31
Business tax returns (dates vary by entity type)
NJ Annual Report
Common Mistakes to Avoid
Waiting too long to register: NJ-REG must be filed 15 business days before operations begin
Assuming federal S-Corp election applies to NJ: You must file NJ Form CBT-2553 separately
Not collecting sales tax: If your goods or services are taxable, collection is required from day one
Forgetting to display the BRC: Required by law at every business location
Misclassifying workers: Using 1099 contractors when they should be W-2 employees creates significant penalties
Missing quarterly deadlines: Set up automatic reminders—penalties accumulate quickly
How Monaco CPA Helps New NJ Businesses
Monaco CPA helps new Essex County business owners complete all registrations correctly and on time, choose the right entity structure, set up compliant payroll, establish bookkeeping systems, and create a tax calendar to prevent missed deadlines.
Phone: (862) 320-9554
Email: greg@monacocpa.cpa
Gregory Monaco, CPA, MBA — Livingston, NJ | Serving Essex County and all of New Jersey
Frequently Asked Questions
How long does NJ business registration take?
Online registration typically takes 2-3 business days. Remember to file at least 15 business days before you start operating.
Do I need to register if I'm just freelancing?
Sole proprietors often don't need a separate NJ-REG as your personal NJ return covers business income. However, if you have employees or need to collect sales tax, registration is required.
What if I already started business without registering?
Register immediately. The longer you wait, the more exposure you have. You may owe back taxes and penalties, but addressing it promptly minimizes the damage.
Do I need a business license in addition to tax registration?
Tax registration is separate from local business licenses. Check with your municipality—many NJ towns require local business licenses or permits.
Can I register for multiple tax types at once?
Yes. That's the purpose of NJ-REG—one form covers most state tax registrations.
Last updated: December 2025. Registration requirements may change. Consult with a qualified CPA for advice specific to your situation.
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