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New Jersey Small Business Law

Regardless of whether you’re the owner of a sole proprietorship, a shareholder of a corporation or unsure of your small business’s legal structure, you may be looking for information about New Jersey’s small business laws.

For business owners in Jersey City, Paterson or Newark, it’s important to understand state and federal laws and know how to proceed when a legal issue develops. LawInfo has the New Jersey small business law information you need from finding financing to workers’ compensation.

First Steps to Starting a Small Business in New Jersey

Starting a new small business should seem like neither a quick or easy process in concept. If you’re rushing a business to market, you might be missing critical regulations or New Jersey laws. The more preparation you put into your small business, the more likely it is to survive and stay on the right side of the law.

Once you’re ready to commit to your small business, you should take these preliminary steps:

  1. Make a business plan.
  2. Choose a legal structure for your business.
  3. Choose and register your business name.
  4. Find a location that suits your business’s needs and get information on the required safety and zoning codes.
  5. Seek financing if you’re unable to self-finance your business.
  6. Register for federal, state and local taxes, licenses and permits.

The New Jersey state government provides a detailed checklist for small business owners that includes state resources and contact information.

New Jersey Small Business Financing

The startup costs of creating a new small business is often an overwhelming financial hurdle for a business owner. Luckily, there are plenty of financing options available in New Jersey, each of which is tailored to fit your specific business needs. Apart from self-financing your business, you can seek financing from:

  • Bank loans.
  • Angel investors.
  • Venture capitals.
  • Friends and family through stock investment.
  • State or federal grants.
  • Public stock investment.

Types of Business Insurance in New Jersey

Insurance can help small businesses protect themselves from specific or general liability, including protection from business-related injuries and property destruction. There are many types of business insurance policies available in New Jersey. Every New Jersey business is required to have worker’s compensation insurance, which covers a business’s liability when an employee is injured on the job.

Not every insurance policy will meet your small business’s specific needs. You and an insurance provider can work to find out what types of liability you’ll need to insure against. It may be economically feasible to consider getting an umbrella policy like general liability insurance or a business owner’s policy instead of paying more for separate policies.

Other important insurance policies you should consider beyond worker’s compensation insurance include:

  • Product Liability Insurance—Covers injury, warranty and property damage claims against the products your business produces, distributes or sells.
  • Professional Liability Insurance—Covers “errors and omissions” your business may make that are liable for malpractice or negligence claims.
  • Commercial Property Insurance—Covers damages from the destruction or loss of business assets like machinery, money, documents, etc.
  • Homeowner’s Insurance—You may be able to add a rider to your homeowner’s insurance policy to cover business-related property damage if you operate your business out of your residence.
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