Tax Issues for New Jersey Start-Ups
Registering to Pay Taxes
Once you have officially obtained the necessary licenses and permits for your business, you will be responsible for notifying Uncle Sam. In many cases, you can simply contact a central tax agency, which in turn will get you started with the appropriate forms and filing requirements. Once your business is listed in their database, you may receive periodic inquiries about your business or forms that you must complete to comply with state or federal laws, or both. The main taxes you will need to be aware of include:
- Estimated federal and state individual income taxes,
- Estimated federal and state corporate income taxes,
- A sales and use tax, and
- Property taxes.
Oftentimes, there may be a single form or tax application that will get you registered with several agencies regarding several different taxes. New Jersey has a single packet that will help you determine for which taxes your business will be liable. Contact the New Jersey Division of Taxation and request the New Jersey Tax Registration Packet, Form REG-P. In this packet you will find:
- Application for Registration, Form REG-1,
- Change of Taxpayer Information, Form REG-C,
- Federal Identification Number Reporting, Form REG-D,
- Information on the taxes of New Jersey, and
- Taxpayer assistance information.
Completing and returning the forms received in this packet will satisfy the filing requirements set forth by New Jersey. Keep in mind, you must register with the division 15 days before you start your business. There is no fee for this registration. Contact the Taxpayer Information Services of the New Jersey Division of Taxation to learn more about New Jersey taxes that will affect your business.
Get an Employer Identification Number
Unless you form a sole proprietorship, you must obtain an employer identification number (EIN), even if you do not have employees. The first registration you should make is to file Form SS-4, Application for Employer Identification Number, with the federal government. You will receive an employer identification number that you will need in many cases to complete other registrations. It is somewhat similar to your personal Social Security number, only it relates to your business.