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New Jersey businesses need to comply with state regulations

There are so many issues that potential business owners need to consider prior to opening their doors. Business formation issues can be key in how successful a business is in the long term. Issues like entity form, licensing agreements and even real estate purchases can all make or break a business. One issue that many New Jersey business owners may over look is governmental regulation.

In many businesses, people cannot just decide to open without some sort of license or oversight from the state. If businesses overlook the critical steps of working with the government to obtain proper permission, a business may never get the chance to open.

According to a new study, it may be particularly important to comply with governmental regulation in New Jersey. In this study — conducted by George Mason University — New Jersey was named as the third most highly regulated state in the country. The only states ranked higher than New Jersey were California and New York.

Officials made this determination after looking at a variety of different factors. These factors included statewide regulations and policies, tax policies, property rights and tort liability. Taking these factors into account, researchers found that many areas of people’s personal and professional lives were regulated.

Some small business advocates have used the study to question why so much regulation is needed in New Jersey. They are currently looking at states that ranked lower for state involvement in the study to see what changes could be adopted in New Jersey.

Until changes are made, new businesses need to comply with all applicable regulations. With the right help, new businesses can get the licenses, pay the fees and meet all the obligations required by the state to have a successful start.

Source: NJBIZ, “Advocate: Heavy regulation limits business opportunity in New Jersey,” Mary Ann Bourbeau, April 9, 2013

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