How to register an escort business in New Jersey

Well, evidently a huge amount of people love living in Jersey. You have the highest population density in the country and the densest highway and rail system nationally (anyone who commutes with NJ Transit, crosses the GWB or sets a tire on the Turnpike or Garden State will confirm this—and with 90% of the population of NJ living in a city, that means most of you). You’re only a bridge, tunnel or ferry away from NYC, and when summer calls everyone flocks to your shores. Your accent is more distinct than one from Brooklyn. You’re cool, New Jersey, and you know it.

New Jersey is also a smart and strong state in which to register your small escort business, and in this article you’ll find clear step-by-step advice on how to do just that. For more information on why it’s vitally important to register your business, rrefer to our article Don’t get busted for tax evasion: Why registering your escort business is the only option.

For some helpful advice on picking out a business name, visit Business.gov.

Step four: Register your business / business name

Sole Proprietorship:

In New Jersey you are not required to register your sole proprietorship escort business as a separate business entity: because the business is you, it is not recognized as a separate business and you’ll file your business information along with your own personal taxes.

You are also not required to register your business name if it is your full name and service: “Jane Doe’s Escort Service”. However, if you take on any other form of a DBA name, including something as simple as “Doe’s Escort Service”, you must register the name with your county clerk’s office. You can find online information for your county at the New Jersey Department of State—Division of Elections.

For more information on if taking on a DBA is a good choice for your business, refer to our article Do I want to be a sole proprietor?

Partnership:

In New Jersey you are not required to register your general partnership business as a separate business entity. However, it is highly recommended that you draft a partnership agreement and file it with the New Jersey Division of Revenue. And because you will have to pay business taxes at the end of the year, it’s important to keep your books in order.

You are also not obligated to register your business name in New Jersey if it is the collected names of the partners outlined in your partnership agreement. But if you choose to take on a DBA name you must register the name with your county clerk’s office. You can find online information for your county at the New Jersey Department of State—Division of Elections.

Corporation:

To register your escort corporation in New Jersey you’ll need to file your Articles of Incorporation with the State of New Jersey Division of Revenue. The preferred way to do this is online at the State of New Jersey—Online Business Entity Filing. You’ll include information on the amount of shares for the corporation and the incorporating persons, and include a $125 filing fee. Because of the intricate information required when starting a corporation, it is highly recommended that you seek advice from a business lawyer and accountant.

Registering your Articles of Incorporation will register your business name, so you will not have to file any additional paperwork for this.

LLC:

To register your escort LLC in New Jersey, you’ll need to file your Articles of Organization with the State of New Jersey Division of Revenue. The preferred way to do this is online at the State of New Jersey—Online Business Entity Filing. The form includes basic information about the members and managers of the LLC, and requires a $125 filing fee.

Registering your Articles of Organization will register your business name, so you will not have to file any additional paperwork.

For more information on these models and their requirements, visit the State of New Jersey Business Action Center.

 

Step six: Register for your federal and New Jersey state taxes

There are a few basic types of taxes small businesses in New Jersey may register for.

  1. Individual Income Tax: If you’re a sole proprietor or LLC, you’ll file your business profits/losses in a Schedule EZ form that will go along with your personal income tax 1040 form. For more information go to IRS.gov. More information, online filing and download forms can be found at the New Jersey Department of the Treasury—Division of Taxation.
  2. Business Taxes: Businesses in New Jersey pay a Corporate Income Franchise Tax, and partnership and LLCs may have to pay a fee per member. For more information, visit the New Jersey Department of the Treasury—Division of Taxation Corporate Business Tax.
  3. Unemployment Insurance: All businesses with employees pay unemployment insurance. You can get more information on federal unemployment taxes at IRS.gov. More information within New Jersey, online filing and download forms can be found at the State of New Jersey Department of Labor and Workforce Development.
  4. Withholding Taxes: Employers must withhold taxes from employees for their personal federal and state income taxes. More information on federal withholding, online filing and downloadable forms can be found at IRS.gov—Employment Taxes. More information within the state can be found at the State of New Jersey Department of the Treasury—Division of Taxation Income Tax-Withholding.
  5. Workers Compensation: If you have employees, you’ll have to pay Worker’s Compensation. More information can be found at the State of New Jersey Department of Labor and Workforce Development.
  6. Self-Employment Taxes: If you own and operate your business and are not paid as an employee, you’ll need to file your own self-employment taxes for social security and Medicaid. This is particularly true for sole proprietorships, general partnerships and LLCs. You can find this Schedule C / 1040 form and get more information at IRS.gov. Get more information at IRS.gov.

For more information on registration and taxes in New Jersey visit the New Jersey Division of Taxation.

Step seven: Get necessary licenses and permits

There is no escort license or one basic “business license” in New Jersey, and chances are your city won’t require you have any other permits for your escort business. But it’s a good idea to familiarize yourself with the State of New Jersey Business Action Center and your city through the IRS’s Permit Me tool and get more information about specific filing from their site.

For more information about registering an escort business in New Jersey, consider the following online destinations: