Moving to New Jersey as a residential contractor: every state's rule

1. 1Application fee. Pay the application fee ($110). Non-refundable initial registration fee (N.J.A.C. 13:45A-17.14), paid by check or money order to the Division of Consumer Affairs with the paper application. Initial applications are mailed or delivered to 124 Halsey Street, 7th Floor, Newark; the Division's Regulated Business Section can be reached at (973) 424-8150..
2. 2Insurance. Carry the required insurance ($500,000). Commercial general liability insurance of at least $500,000 for each occurrence, plus workers' compensation insurance unless the business is exempt under N.J.S.A. 34:15-1 et seq. (attach documentation of the exemption). The certificate must show the policy number, issue date, effective and expiration dates and an authorized signature, with the insured name and address matching the application..
3. 3Surety bond. Post a surety bond ($10,000). "Additional security" under N.J.S.A. 56:8-142: a compliance bond from a surety authorized in New Jersey, an irrevocable bank letter of credit, or securities or money. The minimum is $10,000 for contracts under $10,000 (or under $150,000 of contracts in the previous 12 months), $25,000 for contracts of $10,000 to $120,000 (or $150,000 to $750,000), and $50,000 above $120,000 (or $750,000). A bank check used as security is mailed with the application..
4. 4Business license. Obtain a business license. Business formation documents: a Trade Name Certificate from the county clerk for a sole proprietor using a trade name, partnership documents, a Certificate of Incorporation or a Certificate of Formation, and Form C-150G for an alternate name. A business formed in another state attaches its New Jersey Certificate of Authority, Certificate of Registration or out-of-state sole proprietor business registration, and a corporation or LLC names a New Jersey agent for service of process. The application also requires a FEIN, a physical street address and, for a sole proprietor, a Social Security number..
5. 5Application fee. Pay the application fee ($200) (if applicable). Only if you will build new homes: New Home Builder registration with the Department of Community Affairs, Bureau of Homeowner Protection, before construction starts. The fee is $200, non-refundable, and the registration lasts two years. Each new home must be enrolled in the State warranty plan or an approved private plan, and the Department asks you to allow at least 20 working days for processing..
6. 6Background check. Complete a background check (if applicable). Only for New Home Builder registration: signing the application consents to a criminal history records check, and the Department of Community Affairs may deny a registration for fraud or misrepresentation on the application..

Published fees on this path total $110, excluding exam-vendor fees, bonds, and insurance.