Autofill Legal New Jersey Startup For S-Corporation Forms For Free

This is done by filing an extra form with the IRS. Once granted, this elective status means the IRS will treat your LLC as a Corporation (either an S-Corporation or C-Corporation) for tax purposes. Note: Your New Jersey LLC Operating Agreement should also include information about how your LLC is taxed.

With the enactment of A.B. 4295 on December 22, 2022, New Jersey became the latest state to amend their tax laws to automatically conform to the federal S corporation election. Historically, most states have recognized the federal S corporation election. New Jersey, however, has required a separate state election.

Step 1: Name Your New Jersey LLC. ... Step 2: Choose a Registered Agent. ... Step 3: File the New Jersey Certificate of Formation. ... Step 4: Register for State Taxes. ... Step 5: Create an Operating Agreement. ... Step 6: File Form 2553 to Elect New Jersey S Corp Tax Designation.

A New Jersey S corporation is a company that has elected S corporation taxation with the IRS. This means that the individual shareholders will be taxed on business income instead of the corporation.

Can I set up an S corp myself? While it is possible to file articles of incorporation and go through the S corporation election process alone, S corp requirements are both strict and complex. To ensure you're following the rules, we recommend consulting an attorney or tax professional.

As noted above, a New Jersey S corporation pays a reduced tax rate on that portion of entire net income not subject to Federal corporate income tax. The shareholder is taxed on net pro rata share of S corporation income under the Gross Income Tax.