Summary
The fact that you may need to register with state agencies like New Jersey Business.NJ.Gov is a sneaky misconception that many folks miss.
However, with the rise of remote work, states have begun cracking down and levying penalties for those who (unknowingly) fail to register.
If you're considering operating in New Jersey, use this guide to:
- Explore the that triggers the need to register with the New Jersey Business.NJ.Gov, including criteria such as physical presence, economic activity, and advertising efforts.
- Determine where and how to register with the New Jersey Business.NJ.Gov.
- Understand additional requirements such as Registered Agents, registration with other state departments, and ongoing annual reports.
What criteria would trigger the requirement to register with the New Jersey Business.NJ.Gov?
Key Factors
Physical Presence: The following constitute a physical presence in New Jersey:
- Having an office, store, warehouse, or other physical location.
- Having employees, contractors, or sales representatives based in New Jersey.
- Owning or leasing property in New Jersey.
Economic Activity: These activities can also trigger business obligations:
- Selling goods or services to New Jersey customers, even through e-commerce or remote sales.
- Providing services in New Jersey.
- Regularly soliciting business in New Jersey, establishing a pattern of transactions in the state.
- Deriving receipts in excess of $100,000 from sources within New Jersey during your fiscal or calendar year.
- Having 200 or more separate transactions delivered to customers in New Jersey during your fiscal or calendar year.
Specific Examples
The following are likely considered doing business in New Jersey:
- Operating a retail store or restaurant in New Jersey.
- Having a New Jersey warehouse or distribution center.
- Sending employees to provide on-site installation or repair services in New Jersey.
- Selling products to New Jersey residents through an online store, especially if you exceed the sales or transaction thresholds mentioned above.
- Having a franchisee operating in New Jersey under your trade name.
Important Considerations
- Nexus: New Jersey adheres to the concept of "nexus"– a sufficient connection to the state. Physical presence creates nexus, but so can a significant level of economic activity within the state, even for remote sellers.
- Out-of-State Employees: New Jersey recently adopted a "convenience of the employer" rule. This means that if you have employees working remotely from other states but their primary base of operations is a New Jersey office, New Jersey can tax their income. There are limited exceptions for specific states.
Where do I register, and what else is required?
- A Certificate of Good Standing is required (dated within the past 30 days)
In addition:
A Registered Agent is required to serve as the company's physical in-state presence to receive important legal documents. Do not fall victim to the common misconception that you can leverage an in-state employee as your Registered Agent. It's far too risky.
You'll want to review the other registrations required in New Jersey. Here's a New Jersey specific guide we put together.
What is the registration fee?
The fee charged by New Jersey is $128.50 (if registration is needed).
How long does New Jersey usually take to process?
New Jersey usually takes approximately 1 - 2 weeks to process registrations.
What is required ongoing?
Each state has a complex schedule of required annual reports, which can vary by entity type. Let's take a look at New Jersey's:
C-Corporation
- Filing Date: Between Feb 1 - May 1
- Filing Frequency: Annual
LLC
- Filing Date: Between Feb 1 - May 1
- Filing Frequency: Annual
Non-Profit
- Filing Date: Between Feb 1 - May 1
- Filing Frequency: Annual
There is an Easier Way
Automate registration and annual report tracking in AbstractOps.This guide should definitely help reduce some of the confusion for New Jersey. However, if you have multiple states to worry about, you may look to:
Automate state registrations and annual reports
Centralize email, snail mail, state ID’s, and registered agents, and
Take control of action items, eliminating risks before they become penalties.
Start the AbstractOps product demo to see how easy this can be.
Note: For the avoidance of doubt, nothing provided here shall contemplate, constitute or include tax or legal advice. Always double check with state agency websites for the most up-to-date requirements.
