How to Open a Check-Cashing Business in New Jersey
Check-cashing stores can be profitable, offering a service unavailable to customers without bank accounts. Opening a check-cashing store in New Jersey requires several steps. There are the general details to which you must attend in order to start any business, in addition to obtaining the proper business licenses and following the specific requirements of the state to be eligible for licensing. There are additional requirements for mobile check-cashing stores.
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Instructions
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Obtain financing and find a location. New Jersey forbids any check-cashing business be located within 2,500 feet of an already established check-cashing service, so obtain a certified survey of the location, clearly noting any nearby check cashers and their locations. You will need to submit this survey with your application. Order inventory or business supplies. Hire employees.
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Complete the Universal Form (available on the State of New Jersey's Department of Business's website) for all owners and employees. Make appointments with MorphoTrak to obtain fingerprinting services. The fee is $11 each as of June 2011. Get a copy of the receipt when you pay for fingerprinting, because it must be included with the application, along with your fingerprint reports and individual Universal Forms.
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Apply for a check casher license through the State of New Jersey's Department of Business and Investing by completing the application, available through DOBI's website. Follow all instructions methodically. Include all requested documentation, including four 2-inch by 2-inch photos for all applicants, a trade name certificate filed with county clerk, Certificate of Incorporation/Formation (if a corporation), DBA Certificate (if you're a sole proprietorship), personal certifications (available in the application packet) for owners, directors and major shareholders; and the certified survey location document. You will also need to provide audited financial statements, start-up financial statements for new businesses, a signed statement from your certified public accountant stating she will uphold state laws, a copy of your lease or deed, proof of compliance with zoning laws, and confirmation of a business relationship with your bank.
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For businesses operating as a mobile unit, also include the vehicle registration, proof of insurance coverage, two interior and two exterior photos of the vehicle, and a proposed written schedule of which locations the mobile unit will occupy for each day the business is open throughout the week.
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Owners, major stockholders and directors will also need to submit three letters of references attesting to their character. The people writing the letters should have standing in the community and write the letters on letterhead that identifies their position.
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Pay the processing fee, which is $700 as of June 2011. Wait for approval of your application before opening your business.
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Tips & Warnings
Stay abreast of any changes in laws or policies in order to remain compliant and keep your license.
Be sure to include every item requested for your application, especially the certified survey. The Department of Banking and Investment refuses to process incomplete applications, but doesn't refund the processing fee. Leaving out one thing can be a costly mistake.
References
Resources
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