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S Corporation
This information came from the State of New Jersey’s Web site.
Check with your accountant, lawyer or small business advisor for the most current information or changes to the tax law for this type of business organization.

S Corporations pay a lower corporate tax rate and the shareholders report their pro rata share of S corporation income on their NJ individual income tax returns. The combined tax between the electing S Corporation and its shareholders generally will not exceed the 9% NJ Corporation Business Tax Rate. The rate is 7.5% for corporations with entire net income of $100,000 or less.

A corporation may elect to be a NJ S Corporation only if it meets ALL of these conditions:
-  The corporation is registered as a NJ corporation or as a foreign
   corporation authorized to do business in NJ by the Division of
   Revenue's Business Services Bureau;

-  The corporation is/will be a S Corporation pursuant to Section 1361
   of the Federal Internal Revenue Code;

-  Every shareholder of the corporation consents to the election and
   the jurisdictional requirements as detailed in Part II of the NJ
   S Corporation Election Form CBT-2553.

-  The corporation consents to the election and the assumption of any
   tax liabilities of any non-consenting shareholders who were not
   initial shareholders as indicated in Part III of Form CBT-2553.