The Executive Suite: How to Start a Brokerage Firm in New Jersey

Sunday, September 22, 2013

How to Start a Brokerage Firm in New Jersey

An individual with numerous business contacts in the State of New Jersey can look into making money by starting a brokerage firm. As a New Jersey broker, you will serve as an intermediary between buyers and sellers in the field of your choosing. Business registration and formation is handled through the New Jersey Department of State. The process is the same for brokerage firms as most other companies. Building your contacts and running a successful business will depend on the amount of effort you are willing to put forth.

Suggestions

Register for and pass the Series 7 Examination. This is a requirement to become a broker in the United States, not just in New Jersey. The exam is administered by the Financial Industry Regulatory Authority.
Determine a structure for your business. This needs to be done regardless of location. The type of structure -- corporation, limited liability company or sole proprietorship -- will vary based on your individual needs and preferences.
Register your brokerage firm with the New Jersey Department of the Treasury. As of the date of publication, the registration fee on for-profit business entities was $125. This will make your brokerage firm an active entity in addition to registering the business for taxes.
Pass the NJ broker's exam. To qualify to take the exam, you must be 18 years old or older, possess a high school diploma or GED and have completed a 150-hour prelicensure course.
Apply for your NJ broker's license. To qualify, you must post a surety bond in the amount of $150,000 and provide audited financial statements exhibiting a tangible net worth of at least $50,000.
Pay the license fee. The fee for a New Jersey Broker's license is $1,300.
Apply for membership to the New Jersey Chamber of Commerce. You can request membership through the Chamber's website at njchamber.com. Becoming a member will open you up to contacts with New Jersey businesses, which will allow you to build contacts for your brokerage firm.