A corporation electing to register as a New Jersey S Corporation must complete and file a New Jersey S Corporation Election, Form CBT-2553. The filing due date for Form CBT-2553 is one month later than the time to file a Federal election.
For the election to be valid, every shareholder of the corporation must consent to the election and other requirements of the State. The corporation will be notified within 30 days after filing Form CBT-2553 whether or not the election is accepted.
Once an election is made and accepted, a corporation remains a New Jersey S corporation as long as it is a Federal S corporation. To revoke an election, a letter of revocation must be filed. The letter must be signed by all shareholders holding more than 50% of the outstanding shares of stock on the day of the revocation and a copy of the original election form must be enclosed. The filing deadline for a letter of revocation is on or before the last day of the first tax year of the election.
For more information on S Corporations, see the publication S Corporation Questions and Answers.
A corporation which is an S corporation for Federal purposes but does not elect S corporation
status for State purposes would be subject to the corporate tax rates for ordinary corporations, 9%,
7½%, or 6½%
https://www.llcuniversity.com/irs/tax-r ... ax-paying/Note: Both Single-Member LLCs and Multi-Member LLCs can choose to be taxed as an S-Corp.
. https://www.llcuniversity.com/new-jersey-llc/taxes/Most states recognize an LLC’s federal S-Corp tax election, however New Jersey does not and instead, they require you to file a CBT-2553 with the NJ Division of Taxation.
Doug M wrote:Can you give us the cash basis balance sheet in round numbers? Just want to see if there is a possible taxable event to convert
tshonk wrote:My experience with NJ and S Corps is the election will be rejected atleast once do to timing of the filing. My recomendation is to let a registered agent in NJ handle all of the paperwork. The company will need a registered agent regardless for annual filings.
HowardS wrote:As per 42-2C-14, your LLC’s Registered Agent must have a physical street address located in the state of New Jersey. Is your client a NJ resident? If so, he/she can be his/her own registered agent. You never stated if this is a foreign or domestic NJ LLC.
Nilodop wrote:newbie, I suspect Doug M was looking for more detail than "20,000". List cash basis assets at their basis, with a description (cash, inventory (none, I assume), fixtures, etc.) and list liabilities such as loans, credit card debt, etc. but not accrued expenses.
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