Incorporating a corporation in New Jersey can be a simple procedure that can provide various benefits. By registering your NJ corporations with the state, you can establish trust, protect your personal belongings, and benefit from various tax advantages.

 

Since you are located in New Jersey, you will also be able to benefit from the advantages of doing business in a place with a strong economy and business-friendly environment. With access to major metropolitan areas, a prestigious workforce, and a diverse market, New Jersey is the ideal place to establish and expand your NJ corporation. Through the New Jersey Division of Revenue, you can easily complete your business registration and begin reaping the benefits of being a registered Garden State corporation.

 

Comply with acquiring a business name that is unique and descriptive of your organization. The corporate name is required to include the words "Corporation", "Incorporated", "Company" or an abbreviation such as "Corp.", "Inc.", "Co".

 

Additionally, a registered agent must be identified, who is a natural or legal person who accepts legal documents and notes on behalf of your New Jersey corporation. It may be assigned to a registered agent who is a citizen of New Jersey or a business entity authorized to conduct business in the country.

 

With that, everything is ready to file your NJ corporation with the New Jersey Department of Treasury's Division of Revenue and Business Services. Then, the formation certificate must include the company name, address, purpose, number of authorized shares and the names and addresses of the parties involved. This can be done online through their registration website and once you have paid the required fee, you will be able to get the registration certificate.

You can now draft the company Bylaws, which are the internal rules that govern the operation of your New Jersey corporation and outline the roles and responsibilities of the board of directors, officers, and shareholders, as well as the procedures for holding meetings and making decisions. 

 

Depending on the type of business you're operating, you may need to obtain licenses and permits from the state of New Jersey or local authorities and register for taxes. For example, if you're opening a restaurant, you'll need a food service license from the New Jersey Department of Health.

 

Then your company will need to obtain an EIN or an Employer Identification Number (EIN), which is a unique identifier assigned to your business by the Internal Revenue Service (IRS). You'll need an EIN to open a business bank account, file taxes, and hire employees. Opening a bank account is essential to separate your personal and business finances, making it easier to manage your NJ corporation´s finances and track expenses. Also be sure to research about business insurance plans to protect your company from liability and financial losses in the event of unforeseen circumstances. You may need to obtain general liability insurance, workers' compensation insurance, or professional liability insurance, depending on the nature of your New Jersey corporation.

 

You can successfully incorporate your corporation in New Jersey and establish a solid foundation for your company's growth and success by also complying with the unique laws and regulations that apply to your NJ corporation and not result in fines, penalties and even legal action. New Jersey has strict employment laws, including minimum wage requirements, overtime pay, and workers' compensation. Employers must also provide a safe working environment and adhere to anti-discrimination laws. You must also keep in mind that New Jersey has a complex tax system, with different rates applying to different types of businesses. Corporations are subject to a 9% corporate business tax, while pass-through entities such as partnerships and S corporations are taxed at a rate of 3.5%. To avoid fines your NJ corporation must comply with strict environmental regulations related to air and water pollution and strong consumer protection laws, including regulations on advertising, sales practices, and product safety. Your New Jersey corporation must ensure that they comply with these laws to avoid legal action. With the increasing threat of cyber-attacks, New Jersey has enacted laws to protect consumer data, where businesses must ensure that they have adequate data security measures in place to protect sensitive information. By understanding and complying with these special business laws, corporations operating in New Jersey can avoid legal issues and ensure a successful and profitable operation. It is essential to consult with a qualified attorney or business advisor to ensure that your business is fully compliant with all applicable laws and regulations.

 

Here are some advantages of forming a corporation im New Jersey:

 

• Protection of personal assets. Safeguarding personal assets against the claims of creditors and lawsuits. Sole proprietors and general partners in a partnership are personally and jointly responsible for all the liabilities of a business such as loans, accounts payable, and legal judgments. In a corporation, however, stockholders, directors and officers typically are not liable for their company's debts and obligations. They are limited in liability to the amount they have invested in the corporation (eg: If $100 in stock was purchased, no more than $100 can be lost). Corporations may also hold personal assets like houses, cars or boats. If one is personally involved in a lawsuit or bankruptcy, these assets may be protected. A creditor of the owner of a corporation cannot seize the assets of the company; however, they can seize their ownership shares in the corporation, as that is considered a personal asset.

• Transferable ownership. Ownership in a corporation  is easily transferable to others, either in whole or in part. Some states' laws are particularly attractive to this end. 

• Retirement funds. Retirement funds and qualified retirement plans may be set up more easily with a corporation. Corporations can also fully deduct the cost of paying its owner's health insurance.

• Taxation. In the United States, corporations are taxed at a lower rate than individuals. Also, they can own shares in other corporations and receive corporate dividends 80% tax-free. There are no limits on the amount of losses a corporation may carry forward to subsequent tax years. A sole proprietorship, on the other hand, cannot claim a capital loss greater than $3,000 unless the owner has offsetting capital gains.

• Raising funds through sale of stock. Capital from investors can be raised for corporations easily through the sale of stock.

• Durability. A corporation is capable of continuing indefinitely. Its existence is not affected by the death of shareholders, directors, or officers of the corporation.

• Credit rating. Regardless of an owner's personal credit scores, corporations acquire their own credit rating, and build a separate credit history by applying for and using corporate credit.

 

The final step with OLEN is to place your order online and our business specialists will quickly and easily assist you. You can request your incorporation online at www.oleninc.com, by phone at 855-653-6462 and by email at info@oleninc.com.

 

After you submit your order, we will take care of the filing process and reach out in case any additional information is needed. We process the Certificate of Incorporation for Corporations on your behalf with the Department of State. Once filed you will receive the formation documents by email or mail.

The next steps to consider after incorporating is applying for an EIN (Employer Identification Number) and ordering a corporate kit, which includes a corporate binder with stock certificates, Minutes and by-laws or Operating Agreement, embossing seal and useful IRS forms. OLEN will assist you with both.

 

Is my Corporate Name Available in New Jersey?
We will check the name in the state that you want to form the company. Once the company has been filed and accepted by the state you can then use the name. We cannot guarantee whether or not your corporate name infringes on the rights of someone else.

What is a Registered Agent?
It is a requirement to have a Registered Agent. Usually someone from the company will act as the Registered Agent provided that they have a street address in the state of incorporation. However if you do not have a street address in the state of Incorporation we can appoint a Registered Agent.

What is a Shareholder?
The shareholders are the owners of the corporation. The owners can be individuals or other entities (such as Corporation, LLC or other entities).

What is a Director?
The Directors of the Corporation are appointed by the shareholder to represent the shareholders’ interests and to approve major corporate decisions.

What are the Officers?
The Officers of the Corporation are the President or CEO, Vice President, Secretary and Treasurer. The Officers are appointed by the Directors. The job of the Officers is to run the company and manage the day to day operations. In most states one person can hold all of the Officer Positions.

Can One Person be the Shareholder (Owner), Director and Officer?
Yes in most states one person can hold all of the above positions and it is not uncommon with small closely held corporations.

What is a Federal Employer Identification Number?
The Federal Employer Identification Number is also known as the Fed ID, Tax ID, Federal ID Number and or Employer ID. The Federal ID Number is a 9 Digit number similar to a Social Security Number. The Fed Id is issued for businesses so that they can file Tax Returns and open Business Bank Account.

Does the corporation have to authorize (have) and issue stock (shares)?
Yes and Yes, the corporation must authorize shares in the Articles of Incorporation and issue the stock (shares) of the corporation to the owners.

What is an S-Corporation?

An S-Corporation (Sub-Chapter S) is corporation that files IRS FORM 2553 listing the Individual owners and number of shares owned. The S-Corp Election allows the owners of the corporation to avoid DOUBLE TAXATION of the companies’ profits. The profit of the company is passed through to the owners of the corporation with the profits being taxed at the Corporate Level. The owners of the corporation receive a K-1 Profit or Loss statement and the profit is then reflected on their personal return and taxed on the personal return.
There are limitations to the S-Corporation such as, not having more than 75 owners. Owners typically need to be individuals who are US Citizens or US Resident Aliens and usually cannot be another entity such as another Corporation. The S-Corporation can also only issue one class of shares.