How to START RESTAURANT & CATERING BUSINEss in New Jersey

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Conecting with your local health department

Local health departments are community- grounded public health service providers who are the foreground  forces responsible for essential public health services that cover the health of New Jersey's citizens. 

• Need to approve the floor plan of the business
• Make an initial and regular follow up inspections
• Assures the requirements of state public health laws and regulations are met
• New Jersey Department of Health (NJDH) listing the municipalities and their jurisdiction can be found in this directory

Food Safety Checklist

• The NJDH oversees food safety and its website offers a checklist to help businesses maintain food safety.

Food Safety Certification

• Manager Food Safety Training & Certification is highly recommended. This training can be facilitated for a fee via ServSafe National Restaurant Association. 

Liquor Licenses

• To purchase a liquor license you must contact your Municipal Clerk. Another option is to purchase a license from an existing license holder. The purchaser also must meet the requirements of the New Jersey Alcohol Beverage Control Act.  Each municipality is allowed to issue a number of liquor licenses based on their population. More information can be found in the ABC Handbook.

The initial step in starting a business is writing a carefully designed and thorough business plan. The New Jersey Small Business Development Centers have regional offices equiped with assisting novice entrepreneurs. Free, taxpayer-supported assistance in business plan writing process as well as technical assistance is available to all. 

Additional resources for providing technical assistance:

• NJ Society of Food and Beverage Businesses
• SCORE
• Women’s Center for Entrepreneurship 

Commercial Kitchen

• A Catering business must use a "commercial kitchen," or a kitchen that has been approved and inspected by the Department of health for all food preparation. 

Zoning Requirements

• Every municipality has a Land Use/Zoning Ordinance which regulates the kinds of business activities that are permitted within a designated zone and places restrictions on building on land parcels including building setbacks, building heights, signage, and various other aspects of the land usage. 
• When evaluating a location for your business and to determine the suitability of the site for your purposes it is recommended to consult with the Zoning Officer. 
• Planning/Zoning board approvals may be an obligations you will have. This can be determined after chacking with your local or municipal government office

Building Permits

• Construction covered under the New Jersey Uniform Construction Code will require a Construction Permit and inspections to ensure that all construction conforms to the relevant construction codes.  
• Architectural plans prepared by a licensed Architect may be required when making an application for a  Construction Permit.  
• Business owners should be diligent in preparing a budget for construction costs that is inclusive of  the necessary professional costs and permit fees .
• Visit this site for the copies of permit application forms. 

Prior Approvals

• Thorough evaluatinion of any location for a business is utmost priority.  Some locations may require additional “prior approvals” before permits or zoning approvals can be obtained due to environmental or other land use concerns.
• Professional assistance in evaluating a site may be required. Please contact NJ Society of Food & Beverage Businesses to provide you with the Preferred vendor   with the professional expertise in the desired filed.

Community involvement

• Supporting local community or athletic programs, or joining chambers of commerce, are excellent networking opportunities that show  a business owner's commitment to the neighborhood. Clientele will more likely frequent establishments that show involvment and care for the community. 

Following are general steps required. Please contact your municipality for information on local regulations.

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New Jersey Division of Revenue & Enterprise Services (DORES) 

• If you choose to form a limited liability company (LLC) a corporation (Inc.), a Professional Corporation (PC), you must record that new entity with DORES.  This is not required for Sole Proprietorships or General Partnerships.

Tax Registration

• All businesses must register for Tax purposes with DORES. Every business that has employees, more than a single owner, or is organized as a corporation must obtain a Federal Employer Identification Number (EIN), commonly referred to as a Federal Tax ID #, from the Internal Revenue Service (IRS).

Trade Names, Alternate (Fictitious) Business Names, Doing Business As (DBA)

• Businesses may operate using a name other than their legal name, if that name has been properly registered. 
• Sole Proprietorships and General Partnerships must register a “Tradename” in each of the County Clerk’s Offices in the Counties where they wish to conduct business. LLCs, Corporations, and other legal entities may register an Alternate Name with DORES.  Fictitious names for foreign entities (companies formed outside of New Jersey) are sometimes referred to as a DBA.
• Useful links: County clerks offices and Registering a Fictitious Name 

Mercantile Licenses 

• Many towns require certain businesses to obtain Mercantile or other local business licenses.  Check with the Municipal Clerk’s Office to determine your obligation under the Municipal Ordinances. Your Municipal Clerk can be found by contacting your Municipal Government offices.

Sales & Use Tax

• Businesses may be required to collect sales tax during a qualified transaction and submit those proceeds to the Division of Taxation. 
• You may also qualify for a Resale Certificate that can be used when purchasing items for resale.
• NJ Sales Tax and You: An Overview
• Sales Tax Resale Certificate

Workshops and Assistance

• Workshops to assist small businesses to get educated about their state obligations are provided by The Treasury Department’s “Taxation University” .
• Business Strategy and Cash Flow Management with OnPoint 123
• Additional resources are available to you by proffesional Tax experts at a full service Accounting Firm endorsed by Restaurant Accountants. Please contact OnPoint with any question related to Taxes, Permits or Registration.

There are several obligatins for businesses with employees. Before you hire your workforce get knowledge about laws and regulations you must comply with.

• Wage and Hour Compliance: the New Jersey Department of Labor and Workforce Development’s  office of Wage and Hour Compliance has requirements for wages, working hours, earned sick leave and other regulations that employers must follow. Carefuly review this important information prior to hiring your staff.
• Workers’ Compensation: All employees must be covered by Workers’ Compensation. In addition, any stockholder (owner) of a corporation that works in the business, even if compensation is deferred, must also be covered by Worker’s Comp.  This does not apply to the members (owners) of LLCs. See your business insurance agent for information on state-approved workers compensation policies.