Whats up everyone? It’s been a crazy couple months since my last blog post. A lot has happened since July (I plan on doing a year end review blog post in December) but I wanted to launch my other avenue of blogs I mentioned in a previous post.
Since I was little, I noticed that I get immense satisfaction in just “learning”. Particularly when it revolves around a topic or subject I find interesting & the enjoyment comes in the ‘doing’ itself. When I decided I wanted to started my own company, it was important to me to approach every step of it with a profound curiosity from the very start. I feel as though with any major life change, there’s always the anxiety & stress that comes before you take that first step. There is also the (perceived) notion that it will be extremely difficult process & it is easier to pay someone than learn yourself.
Now this can very well be true in some cases, but I wanted to create an aspect of the blog that focuses on the things I’ve learned through the craziness of getting Modern Roofing off the ground. This may encompass anything from advice I’ve gotten from others, literal step by step instructions on niche things like finding suppliers, best options for business banking, hiring process, or just general funny or interesting stories of things that have happened along the way.
For the first edition, I figured I would start with the business formation process on day one. Reason being, I screwed up myself. In the age of internet advice, surely most people have heard of digital lawyers like LegalZoom, NerdWallet, etc. that you can pay a fee to form your business under an LLC or Corporation & protect you from liability. What most people don’t realize is that technically you don’t need a law degree to do any of this yourself (or at least I didn’t know this). All of these things are perfectly acceptable to do on your own. The costs vary from one service to the next, but if you have the time & patience to do this yourself, you may save a few hundred dollars that can go towards the actual business itself. Of course there’s a fee associated with forming the business from the state, but it’s possible to cut out the middle man.
After a few of my friend’s had mentioned they were considering forming their own LLC or entity, I figured it would be beneficial to put my notes in a 2-page document & hopefully help others while saving them some money. This should be pretty simple to follow, but if you have any questions or get stuck, feel free to reach out – Zack@ModernRoofingNJ.com
Business Formation Process
Note: NJ actually has a great step by step process online, as well has a bunch of resources that would help you along the way. I condensed it all below, but you can find most of the info I wrote out here: NJ Business Formation Guide . There is also a business formation navigator that NJ offers that makes it simple as well, but I would follow along below.
Before registering anything online, you must first obtain an EIN (Employer Identification Number) from the IRS. You can file that through their online application: EIN Application or you can just print the S4 application & send it in: SS-4 Business Application. (I forget how long it takes once it’s submitted, but you cannot start Step 2 until they provide you with an EIN).
Once you have your EIN, you’re ready to form the LLC. Start by making sure the name you want to use is not already taken: Business Name Search
When you find a name that’s available, click here & write down the code for the business you will be operating: NJ Business Codes
You will also need to find the NAICS code that best describes the type of company that will be operating. If you click the number in blue, it will bring to a sub-category to pick the one that best fits. Write this down as well. NAICS Business Code
At this point, you should have your:
- EIN #
- Check if Business Name is available
- Written down the Business Code
- Written down the NAICS Codes
If you have everything listed above, you can use the online application to form your business & you should only have to pay $125 for the registration.
Follow the link here: NJ Business Formation Application This will walk you through the steps, using the information above to complete everything necessary.
There are a couple steps that can be a little confusing though. Here are some of the answers to the slides incase you get confused:
- What type of business would you like to form? NJ Domestic Limited Liability Company (LLC)
- Business Designator? This is how you want it displayed at the end of your business name. I would just pick regular “LLC”
- Registered Agent Information: Click “Enter a Registered Agent/Office” & then register yourself (or your wife if she is doing it with you) as the agent of the company. They may ask for your SSN, etc. & once you complete the form they will provide you with a number. You use this number to complete the application.
There may be a couple more questions, but once you complete the application you should get a certificate showing you are formed & a document with your EIN to use for filing tax returns.