[Your Name] [Your Address] [City, State, Zip] [Email Address] [Phone Number] [Date] [Recipient's Name] [Recipient's Title] [Company Name] [Company Address] [City, State, Zip] Subject: Election of Sub-S Status — Articles of Incorporation Filing Dear [Recipient's Name], I hope this letter finds you well. I am writing to inform you of our intention to elect Subchapter S Corporation (Sub-S) status for our business, [Company Name], as stated in its Articles of Incorporation. As you may be aware, Sub-S status offers significant tax advantages and certain benefits to small businesses operating in New Jersey. By choosing Sub-S status, we aim to maximize tax efficiency while ensuring flexibility in our company's financial structure. We kindly request your guidance and assistance in preparing the necessary documents and filings to effectuate the election of Sub-S status. Here are the specific details of our company and the required information: 1. Business Name: [Company Name] 2. Business Address: [Company Address] 3. Principal Business Activity: [Briefly describe the nature of your business] Additionally, we would appreciate your insight in the following areas related to the election of Sub-S status: 1. Eligibility: Confirm whether our company meets the eligibility requirements set forth by the Internal Revenue Service (IRS) and New Jersey State laws for Sub-S status election. 2. Shareholder Information: Provide instructions on reporting, documenting, and verifying the details of our shareholders, including their names, Social Security Numbers, and ownership percentages. 3. Tax Year: Advise us on selecting an appropriate tax year (calendar year or fiscal year) for our Sub-S Corporation and if any changes need to be made to our existing fiscal year. 4. Required Filings: Inform us of all necessary state and federal forms, such as Form 2553 — Election by a Small Business Corporation, that we need to complete and submit to achieve Sub-S status. 5. Deadlines: Specify any important deadlines for filing the necessary documentation to effectuate the election and avoid any penalties or delays. Please note that we understand the importance of seeking legal and accounting advice before making any definitive decisions. However, we believe your expertise in this matter will be invaluable to us throughout the process. Kindly respond to this letter at your earliest convenience, so we can initiate the necessary steps promptly. We appreciate your support and value the professionalism that your firm has consistently demonstrated. Thank you for your attention to this matter. Yours sincerely, [Your Name] [Your Title] [Company Name]
New Jersey Sample Letter regarding Articles of Incorporation - Election of Sub-S Status
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How to fill out Sample Letter Regarding Articles Of Incorporation - Election Of Sub-S Status?
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Requirements for an S corporation include: The corporation must not have more than 100 shareholders. All shareholders must be individuals, estates, certain tax-exempt organizations, or certain kinds of trusts. None of the individual shareholders can be classified as a nonresident alien.
An LLC can choose to be treated as an S corporation in a two-step process: File a Form 8832, Entity Classification Election. This causes the business to be taxed as a C corporation. Then file Form 2553 to elect an S corporation tax structure.
Corporations may elect to register in New Jersey as a Sub-Chapter S corporation. Since the S corporation status for federal purposes does not automatically flow through for New Jersey state purposes, you must apply for S corporation status in this state and receive approval of the election.
Requirements for filing for S corp status Be a domestic corporation. Have only allowable shareholders. Allowable shareholders include individuals, certain trusts, and estates. Non-allowable shareholders include partnerships, corporations, or non-resident aliens.
To qualify for S-Corporation status, the business must be a corporation and meet the following requirements: Geography - Organized in the United States. Citizenship - All shareholders must be US Citizens or resident aliens. Number of Shareholders- It cannot have more than 100 shareholders.
In order to become an S corporation, the corporation must submit Form 2553, Election by a Small Business Corporation signed by all the shareholders. See the Instructions for Form 2553PDF for all required information and to determine where to file the form.
Shareholders may not be partnerships or corporations. Shareholders must be US citizens or residents. The business may have no more than 100 shareholders. The business may only have one class of stock (if stock is issued).
Most importantly, you must have no more than 100 shareholders to qualify as an S-corporation. You must also only have what the IRS defines as ?eligible shareholders,? meaning shareholders must be individuals, certain trusts or estates. Shareholders also must be U.S. citizens or legal residents.
