Instructions for getting your NJ electrical contractor license / business permit.
After you pass the NJ electrical test about the Board of Electrical Examiners will send you a packet of information / forms. The packet will include a form that begins KNOW ALL THESE MEN… This is the actual bond form. We do not need it because we have the exact form stored on our computer. You can purchase one from our website ELECTRICAL CONTRACTOR BOND INFORMATION & PURCHASE PAGE Upon purchasing the bond we will send it to you in the mail. You will then sign it and submit it to the electrical board along with the rest of your paperwork when applying for a business permit.
When you get your package of license information from the State, the documents are confusing. We have put together this article to clear up some of the usual questions we constantly answer. You can apply for the license, pressure seal AND business permit at the same time. Some of these forms have an area for your license number to be inserted. Don’t worry about it. They will assign you a number. The business permit is necessary if you will do public work (have a business). The pressure seal is applicable for the business permit.
- Your license always reads in your natural name, not business name.
- Your business permit always reads in your business name.
Natural Name: Example: Natural name: John Doe. John can use “John Doe Electrical Contractor”, or “John Doe Electric”. (remember the business name must include the word “electric” or “electrical contractor”) John does NOT have to register this name. This is not a trade name, it’s a natural name.
Trade Name: John wants to use: “Doe Electrical Contacting & Lighting”. He must register this trade name with the county he lives in. The board needs a copy of the trade name certificate.
Corporation or LLC: John wants to incorporate or form an LLC example: “Doe Electrical Contactors and General Construction Inc.”(or LLC) When John incorporates (or forms the LLC) it will be registered with the 21 counties in NJ automatically. You can form a corporation or LLC online yourself, through your attorney or accountant. INFORMATION ABOUT FORMING A CORPORATION OR LLC: go to http://www.state.nj.us./njbgs/ (New Jersey Business Gateway Services) or directly to the form.
Federal tax ID number (FEIN): A corporation or LLC must have a FEIN #. Upon confirmation of a corporation or LLC you must file for a FEIN number with the IRS. You do not need to have a FEIN number if you are trading as an individual (“John Doe Electrical Contractor”) or trade name. You can use your social security (SS#) number. To obtain a FEIN # go to: Internal Revenue Service: http://www.irs.gov/businesses/small/article/0,,id=98350,00.html
NJ Sales Tax: Whatever type of business you form, you must collect sales taxes from your customers and pay the State of NJ monthly. Information about collecting the NJ sales tax: Register a business with the state of NJ
Summary: The Board needs from you…
- Completed form for license and appropriate fee
- Completed form for pressure seal and appropriate fee
- Completed business permit form and appropriate fee. Also needs to notarized. (Almost all the time “affidavit A” is used, not “affidavit B”
- Copy of your LLC formation (if an LLC)
- Copy of your corporation formation and statement of ownership (if a corporation)
- Copy of “certificate of trade name” (if an trade name has been formed)
- Surety Bond (This agency will provide)
- Certificate of liability insurance (This agency will provide if you purchase the insurance from us.)
After you submit the forms to the “Board” by the deadline date, then you will be approved at the next business meeting. Approximately 7-10 days after that meeting the “Board” will send you a temporary license. You now can start your business! Two and one-half months later the “Board” will send you the seal for the business permit.
Still confused? Give us a call! 973-377-6100
GET AN EXACT QUOTE FOR YOUR BUSINESS – complete an online survey form
- GET AN EXACT QUOTATION FOR YOUR BUSINESS – Complete an online ELECTRICAL CONTRACTOR SURVEY or call us!
Back to our MAIN ELECTRICAL CONTRACTOR BUSINESS PAGE
- Link to NJ Board of Electrical Contractors – NJ Division of Consumer Affairs
- Application Page- Link to NJ Board of Electrical Contractors – NJ Division of Consumer Affairs
- LIABILITY INSURANCE FOR CONTRACTORS
- EXPLANATION OF LIABILITY INSURANCE FOR ELECTRICAL AND ALARM CONTRACTORS
- INFORMATION ABOUT BUSINESS TYPES (LLC’S, CORPORATIONS ETC. BOARD OF ELECTRICAL CONTRACTORS WEBSITE NJ