New Jersey S-Corporation Compliance Guide
Everything you need to legally form and operate a S-Corporation in New Jersey. Filing fees, tax forms, ongoing requirements, and the trade-offs of this structure.
Is a S-Corporation Right for You?
Profitable businesses generating $60K+ net income where owner can save 15.3% SE tax on distributions above reasonable salary.
Payroll requirement. More paperwork. Reasonable salary is IRS audit target. Max 100 shareholders, no foreign owners.
Tax treatment
Pass-through. Owner takes a 'reasonable salary' as W-2 wages; remainder is distribution (no SE tax on distributions).
| Item | New Jersey Requirement |
|---|---|
| Formal state filing required | Yes — file Articles of Incorporation with the New Jersey Secretary of State. |
| State filing fee | $125 |
| Federal tax form filed | Form 1120-S |
| Employer Identification Number (EIN) | Required — apply free at irs.gov (5 minutes online) |
| Registered agent required | Yes — must have a physical New Jersey address available during business hours. |
| Annual/periodic report | annual — fee $75 |
| State income tax | Pass-through — owners pay New Jersey personal income tax on business income. Top rate 10.75%. |
| Reasonable salary requirement | Yes — owner-employees must pay themselves a market-rate W-2 salary before taking distributions. IRS audit target. |
| Payroll setup | Required — need a payroll provider (Gusto, ADP, QuickBooks Payroll) to run owner W-2 and any employees. |
Formation Packet
New Jersey S-Corporation — Corporate Bylaws, Resolutions & EIN Walkthrough
You've filed with the state — now you need the documents banks, the IRS, and courts actually ask for: a corporate bylaws, initial resolutions, an EIN application walkthrough, a banking resolution, and an ownership ledger. One editable Word document, delivered by email within minutes.
Filing Sequence in New Jersey
- 1
Choose a business name
Search New Jersey SoS name database. Reserve the name if desired (~$25 fee, optional).
- 2
Get an EIN from the IRS
Free at irs.gov. Takes ~5 minutes online. Required for all business banking, payroll, and tax filings.
- 3
File formation documents ($125)
Submit Articles of Incorporation to New Jersey Secretary of State. Include registered agent info. Processing ~7 business days.
- 4
File Form 2553 to elect S-Corp status
Must be filed within 2 months + 15 days of the tax year start (or entity formation). Free federal filing.
- 5
Register for state taxes
Register for sales tax if selling taxable goods/services in New Jersey. Register with New Jersey Department of Revenue for state income tax withholding if hiring employees.
- 6
Open a business bank account
Separate business finances from personal. Bank will require EIN, formation docs (for entities), and often an operating agreement.
Compare Other Structures in New Jersey
Not legal or tax advice.
State filing requirements change. Verify fees and deadlines with the New JerseySecretary of State and Department of Revenue before filing. Structure choice has tax and liability implications — consult a licensed CPA or attorney for your specific situation.