Want to setup a business in New Jersey? All you need to know about the taxes
The state of New Jersey allows several different benefits and OPP for new businesses to function in the state. Traders need to understand a few basic steps before setting up their own businesses in the state. A step by step process including the tax and payments is discussed in this article for residents to get themselves familiar with the procedures and set up their businesses smoothly.
Before Registering
Deciding what business structure is required for the new endeavor is integral before registering the business. Tax consultants in New Jersey can be contacted for finding the best business structure that will help the traders avoid unnecessary taxes and save money.
Registering the business
Traders must be sure that their business name is available for registering. While sole proprietors and partnerships can directly register the trade name in their county, the corporations and other LLCs require a complete Public Record Filing.
Businessmen require a unique 12-digit New Jersey Taxpayer Identification Number that corresponds with their Federal Employer Identification Number (FEIN) or their Social Security Number. This is very important for the business as it allows the government to identify the business and all the payments and mails sent to them by the trade.
Taxes and payments
On top of running a business doing taxes properly can be cumbersome. There are several taxes and various forms to be filled and payments to be made. The Accounting and Tax company is an online Tax consultation Service in New Jersey that can help traders easily file their returns and keep their businesses running smoothly.
Corporation
Corporations registered with New Jersey are required to file the CBT-100 or CBT-100S
returns annually. This applies both to corporations formed in New Jersey and foreign corporations.
Partnership
Partnerships with income or losses sourced to New Jersey, or which have a New Jersey resident partner, are required to file the NJ-1065 return annually. Partnerships that withhold tax on behalf of their nonresident partners are required to file the NJ-CBT-1065 in addition to the NJ-1065.
Sole Proprietor / Single Member Limited Liability Company (LLC)
Sole proprietors and single-member LLCs do not file a business Income Tax return. They are
treated as individuals for Income Tax purposes, and must file an NJ-1040 or NJ-1040NR
return to report and remit any net profit earned from the business.
Sales Tax
In general, every New Jersey business selling taxable items or services must collect and remit New Jersey Sales and Use Tax when sales are completed by delivery to a New Jersey location or performance of the service in this State.
A New Jersey Certificate of Authority for Sales Tax is necessary to collect Sales Tax and to issue and receive exemption certificates. The New Jersey Certificate of Authority must be displayed at the place of business.
Employer Withholdings
As a New Jersey employer, you are required to withhold New Jersey Income Tax from wages paid to all New Jersey residents and nonresident employees physically working in this State. Pennsylvania residents are the only out-of-state residents exempt from New Jersey withholdings.
