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Lev
Lev, Tax Advisor
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Experience:  Taxes, Immigration, Labor Relations
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An S-Corp is registered in NYS. Business is performed in NJ.

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An S-Corp is registered in NYS. Business is performed in NJ. What are the tax filing requirements? Is it just NJ since that is where the business was performed even though the Corp is registered in NJ?

You are required to register your foreign (out of state) corporation with the state of New Jersey if you are “transacting business” or “doing business” in New Jersey.

A Certificate of Good Standing from the home state must be included with the New Jersey filing.

A fee of $125.00 for all profit businesses (domestic and foreign) must be submitted at the time of filing.

You will find all details here

http://www.state.nj.us/treasury/revenue/forms/2000.pdf

Questions?

Customer: replied 1 month ago.
What about the tax return filings? Just NJ if business is conducted only in NJ even though registered in NY?

S-corporation transacting business in NJ - regardless where it is originally registered - will be under NJ jurisdiction

Please be aware that in NJ - a corporation must file Form CBT-2553 to elect to be treated as a New Jersey S corporation.

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.

Then - the S-corporation will file NJ tax return - and will be taxed only on income from NJ sources.

Correspondingly - income passed to you as a shareholder of S-corporation that is from NJ sources will be taxed for you on NJ state level.

Here is the form

http://www.state.nj.us/treasury/taxation/pdf/current/cbt/cbt100s.pdf

See line 2 - regarding allocation factor - so using that allocation factor - you will calculate income attributed to NJ only and will be taxed only on that income.

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