Paterson Mercantile License: Required for Every Business ($50 + $125 a Year)

If you plan to do business in Paterson, New Jersey, you will likely need a mercantile license from the city. Chapter 322 of the Paterson city code requires one, and the costs are a $50 application fee and a $125 annual fee. Many new owners confuse this with a state business license, but the two are different. New Jersey does not issue a general statewide business license, and counties do not license businesses either. This guide covers the city license, the state filings you should complete first, and the city offices you will deal with.

This article is informational, not legal or tax advice. Fees and procedures change, so confirm every figure with the agency named before you pay or file. For lease disputes, zoning variances, or tax elections, talk to a New Jersey attorney or a CPA.

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What the Paterson Mercantile License Covers

A business operating in Paterson needs a mercantile license under Chapter 322. Mercantile Licensing, part of Health & Human Services at 125 Ellison St, issues the license. The application is addressed to the City Council, and the Council must approve it before the license is issued.

A few rules shape who needs one:

One license per business. Each business holds a single mercantile license.
Some businesses are excepted. A business holding a state license that exempts it, or one licensed under another city chapter, may not need a mercantile license. Ask Mercantile Licensing to confirm your status in writing.
Display and disclosure. The license must be posted at the business, and its number must appear on bills and contracts.
Penalties. Violations carry fines of $100 to $1,250.

What to Have Ready Before You Apply

Gather these items first. A missing document usually means a second trip to city hall or a delayed approval.

Your exact legal business name and entity type, plus the name of the owner or managing member.
The Paterson street address where you will operate.
Your New Jersey Certificate of Formation (LLC) or Certificate of Incorporation (corporation), if you have already formed the entity.
Your NJ tax ID from the NJ-REG registration, once you complete it.
A short written description of your business activities. Zoning depends on the use, not just the address.
The $50 application fee. Confirm accepted payment methods with Mercantile Licensing before you visit.

Step-by-Step: Getting Your Paterson Mercantile License

Confirm the license applies to you. Ask whether your activity counts as doing business in the city. This matters most for home-based businesses, mobile services, and companies that only sell online. Ask whether a state license exempts you and get the answer in writing.
Form your entity and check your name. If you have not formed yet, file through the NJ Business Portal at https://www.njportal.com/DOR/BusinessFormation/. The filing fee is $100 for LLCs and corporations since July 1, 2026. An LLC name must include a designator such as LLC, and it must be distinguishable from every other name in the state database. Search availability at https://www.njportal.com/DOR/BusinessNameSearch/Search/Availability. If you need time, a name reservation costs $50 and lasts 120 days. The registered office must be a New Jersey street address, and a PO box may be listed only alongside a street address. There is no publication requirement for new New Jersey entities.
Register for taxes with NJ-REG. Every business must complete tax and employer registration with the Division of Revenue after forming. This produces your NJ tax ID and, where applicable, a sales tax certificate of authority. Register at https://www.njportal.com/DOR/BusinessRegistration/. If you sell taxable goods, the state sales tax rate is 6.625%. Note that the Business Registration Certificate (BRC) is not a license. It proves NJ-REG registration and is separately required for certain contractors.
Clear zoning with Planning and Zoning. Paterson's Planning and Zoning review confirms that your proposed use is allowed at your address. Bring your business description and address. Ask about parking, signage, and hours restrictions that may apply. Also ask whether your address falls inside the city's Urban Enterprise Zone (UEZ), since UEZ status can affect incentives.
Obtain your certificate of occupancy (CO) and certificate of continued occupancy (CCO). UCC Construction at 111 Broadway issues these after the zoning review. Ask UCC Construction for the current fees and processing time, because they are not confirmed here. Also ask Mercantile Licensing whether it needs the CO before it approves your license.
Contact the Paterson Division of Health if your business is health-regulated. Paterson operates its own Division of Health, which also serves North Haledon. Food service, personal care, and some other activities may need permits from the division. Confirm which permits apply to your activity and what they cost before you open.
Submit the mercantile application and pay the $50 fee. Submit the application to Mercantile Licensing at 125 Ellison St. It is addressed to the City Council, which must approve it. Ask for the current processing timeline and whether a mid-year application is prorated, since licenses run on the calendar year.
Pay the annual fee and receive the license. The annual fee is $125 under Ordinance 10-074 (2010). Licenses expire December 31 each year. Confirm the payment schedule and accepted methods with Mercantile Licensing.
Post the license and print the number. Display the license at your business location. Print the license number on invoices, bills, and contracts so the requirement is visibly met.

Key Fees and Deadlines at a Glance

Item	Amount or Deadline	Where to Confirm
Paterson mercantile application fee	$50	Mercantile Licensing, 125 Ellison St
Paterson mercantile annual fee	$125 per calendar year	Mercantile Licensing
Paterson mercantile renewal fee (code sec. 322-16)	$100, due 30 days before the December 31 expiration (about December 1). Confirm the current amount.	Mercantile Licensing
NJ LLC or corporation filing fee	$100 (since July 1, 2026)	NJ Business Portal
NJ annual report (LLC or corporation)	$75, due by the last day of the formation anniversary month	NJ Business Portal
NJ name reservation	$50 for 120 days, renewable	Division of Revenue and Enterprise Services
Change of registered agent or office, or agent resignation without successor	$25	Division of Revenue and Enterprise Services
Mercantile license violation fines	$100 to $1,250	Mercantile Licensing

Renewals and Deadlines

Mark these dates on your calendar the day you receive your license:

Paterson license expiration: December 31 of each year.
Paterson renewal fee: The city code sets a $100 renewal fee due 30 days before expiration. Because the annual fee in this guide is $125, ask Mercantile Licensing which amount applies to your renewal.
NJ annual report: $75 each year, due by the last day of the month in which your entity was formed. Two consecutive missed years can lead to revocation of an LLC.

Common Mistakes to Avoid

Assuming a state or county license covers the city. New Jersey has no general business license, and counties license nothing. The city license is separate.
Treating the BRC as a license. The BRC proves NJ-REG registration. It does not authorize you to operate in Paterson.
Signing a lease before checking zoning. Ask Planning and Zoning about your use before you commit to a location.
Opening before the CO is in place. Operating without the required approvals can create fines and closure problems.
Using a PO box as the only registered office. The registered office must be a New Jersey street address.
Leaving the LLC designator off the name. DORES will add one if you do not, but you should choose the name you want on record.
Forgetting the license number on documents. Bills and contracts must show the number.
Missing the renewal window. Calendar the December renewal date and the NJ annual report separately.

Tips That Save Time

Call Mercantile Licensing before you sign a lease and ask whether your planned use needs any approval beyond the mercantile license.
Get every exemption or exception confirmed in writing, and keep a copy with your business records.
Ask UCC Construction and the Division of Health for their fee schedules and timelines before you schedule inspections.
Ask the City of Paterson for the current contact details and forms on its official website, since office procedures can change.
If you are unsure whether your business is a good fit for the New Jersey Small Business Development Centers, their free advising is available at https://njsbdc.com/.

What to Expect After You Are Licensed

Once the Council approves your application and you pay the annual fee, you may begin operating in Paterson under the city's mercantile rules. Businesses that complete the state filings, zoning review, and CO steps in order typically avoid the rework that comes from resubmitting paperwork. The license is a city permit to do business. It does not replace your zoning approval, certificate of occupancy, health permits, or state tax registration, and it does not guarantee any particular approval timeline.

Paterson also does not appear on the state list of municipalities for the municipal occupancy tax, but lodging operators should still confirm any local obligations with the city.

When to Get Professional Help

Simple sole proprietorships and single-owner LLCs in a standard retail or office space usually have a manageable process. Get professional advice if you have multiple owners, a home-based business with zoning questions, a health-regulated product or service, a business in the UEZ with incentive questions, or a lease that depends on the CO timeline. A New Jersey attorney can review your entity structure and lease terms, and a CPA can advise on tax registration and the choice between LLC and corporate treatment.

Reminder: this guide is informational only and is not legal or tax advice. Confirm every fee, deadline, and requirement with Mercantile Licensing, Planning and Zoning, UCC Construction, the Paterson Division of Health, or the New Jersey Division of Revenue and Enterprise Services before you act.