New Jersey (NJ) Electrical Contractor Information for New Contractors
Instructions for getting your license / business permit.
When you get your package of license information from the State, there are no instructions. We have put together this page to clear up some of the usual questions we always answer.
The test will be administered by PSI where you will take the test on a computer at approximately 8 sites throughout the state of NJ. Upon completion you will find out if you passed or failed and your grade. If you passed, one to two weeks later the Board of Electrical Contractors will send you a packet of applications, etc.. The packet will include a form that begins “KNOW ALL THESE MEN…” That’s the actual surety bond form. We do not need it because we have the exact form stored in our computer. After you purchase the bond we will send you the completed bond that just needs your signature and a witness to your signature. You will then send this bond to the Board of Electrical Contractors along with the certificate of insurance that we will issue for you when you purchase liability insurance from this agency. The packet will also contain an application for a license and business permit and pressure seal. The pressure seal is necessary only if you are going to obtain a business permit. If you do not plan on working for the public, only holding a license, then you do not have to purchase the business permit and do not need the surety bond or liability insurance.
You should apply for the license, pressure seal AND business permit at the same time. The business permit is necessary for you will do public work (have a business).
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.
- You need to register a trade name (business name) with your county clerk (hall of records) if you are NOT using your natural name. The trade name will be reserved only in the county registered. Do NOT register an LLC or Corporation name with the county!
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 trade name.
John wants to use: Doe Electrical Contracting & Lighting. He must register this trade name with the county he lives in. The board needs a copy of this certificate.
John wants to incorporate and use: Doe Electrical Contractors and General Construction Inc. When John incorporates it will be registered through out the state.
LLC (Limited Liability Company)
A Limited Liability Company is similar to a corporation. It provides protection like a corporation, however there are difference that can be explained by an attorney. Please seek legal advise. You can form an LLC on your own through the NJ Business Gateway Services (see this site forms / links for the link), however please don’t form one unless you know what you are doing. DO NOT register an LLC with the county. When you form an LLC the name is register with the state (and all 21 counties automatically)
Federal tax ID number (FEIN)
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, however it is a good idea to obtain one. An LLC or Corporation MUST obtain one. After forming the LLC or corporation from the State of NJ you must file for a FEIN number with the IRS. You must always use this number. (See this site forms / links for the link to the IRS)
The business permit application needs to be completed and notarized on page #2. Almost all the time “affidavit A” (NOT B) needs to be completed.
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
- Copy of “certificate of trade name” (if trading as)
- 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, (check the website) 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.
If you have any questions, please call us or the Board of Electrical Contractors.
If you would like to purchase a NJ Electrical Contractor Business Permit Surety Bond, please click here: NJ Electrical Business Permit Bond.