A NY S-Corp with no locations in NJ and is a contractor is planning on doing
a job in NJ.
What if anything must the NY corp do with regard to registering possibly as
a foreign corp?
What actions would require the Contactor to file NJ Foreign Corp tax
Most of the function is to hire local sub contractors to do the work in NJ.
Thanks for any assistance or advice you may offer.
The S corporation must qualify to do business in NJ. The forms are
available on the New Jersey Secretary of State's web site. It may
also be required to obtain a NJ contractor's license; check with the
NJ Department of Consumer Affairs.
A corporation is subject to the New Jersey corporation business tax if
it is doing business in NJ, deriving income from sources in NJ, or
"engaging in contacts in New Jersey," among other things (N.J. Admin.
Code 18:7-1.6). If the S corporation is acting as the general
contractor on a project in New Jersey it will surely be doing all of
those things. The form to register for the corporation business tax
is available on the Department of Revenue's web site. Also, in order
to be treated as an S corporation for NJ tax purposes, the corporation
must file a NJ S election; without it, the default is to C corporation
treatment. (This is similar to NY.)
Each of the stockholders will be an individual income taxpayer in New
Jersey on the flowthrough income apportioned to New Jersey.
Stockholders who are nonresidents of New Jersey must consent to
jurisdiction to tax their NJ source income; the corporation must
withhold and pay over tax on the distributive shares of any
nonconsenting nonresident stockholders.
Katie in San Diego