Does NJ require a separate S corp election?

S Corporation Election. Every corporation that elects to be a New Jersey S corporation must file a New Jersey S Corpora- tion or New Jersey QSSS Election (Form CBT-2553) within one calendar month subsequent to the federal S corporation filing requirement.

Can a sub’s own a sub s?

The answer to the question of “can an S corp own an S corp?” is yes, but it must own 100 percent of the shares of that S corp’s stock and treat it as a subsidiary. An S corporation is a corporation established by state law that has elected to be treated under Subchapter S by the IRS for tax purposes.

What is sub’s election?

Generally speaking, Subchapter S election means that for federal tax purposes the corporation does not exist. A general C corporation that has “elected” S corporation status passes earnings and losses through the corporation and is reported on the owners’ personal income tax return.

What is a non electing S corporation in New Jersey?

A federal S corporation that does not elect to be treated as an S corporation for New Jersey purposes is a non- electing federal S corporation.

How does NJ elect S corp status?

Apply for S corporation status with the Internal Revenue Service. Be fully registered with the NJ Division of Revenue and Enterprise Services, and have a Certificate of Incorporation or a Certificate of Authority to do business in this State. File a New Jersey S Corporation Election using the online SCORP application.

Does NJ have an S election?

New Jersey S election> Yes. A New Jersey S corporation is a corporation that is an S corporation as defined by IRC Sec. 1361 and has made a valid New Jersey election, N.J.S.A. 54:10A-4(o) & (p) and N.J.S.A.

Can I revoke an S corp election?

To revoke a Subchapter S election/small business election that was made on Form 2553, submit a statement of revocation to the service center where you file your annual return. The statement should state: The corporation revokes the election made under Section 1362(a)

When can an S corp election be made?

When you first form your corporation, you have a short window of opportunity to make an S corporation election that is effective for the first year of operation. The election must be filed with the IRS no more than two months and 15 days after the beginning of your corporation’s tax year.