I formed S-corp in Oct'05.Initally I setup bought something business total expense around 5k but i didn't do any business(no activity after spending 5K).

I was filing quarterly/yearly returns showing Zero dollar income.For the 2006 i claimed my investment losses in my personal income tax.

Couple of months ago i received a notice from NJ Tax division that I owe taxes per each year and when i called IRS they mentioned i need to pay Alternative Min tax of $550/Year and if i do not do any business close it.Since i do not have any assets,I completed the form and received acknowledgement.

I received on more letter that i still owe taxes with penality per each year.Only $35 dollars left in the bank account after the money being spent(not to say all $5k gone).
My question is:
Do i still owe taxes to NJ gov?I thought company is different from personal and that the reason we form corp.Do i need loan more money to the s-corp to pay taxes of roughly 3k with penality?Becaus eof my misunderstanding of no income no tax..it is costing me more than i received anything

What would happen to my personal tax returns?I would like to resolve this.Any help/suggestions would be greatly appreciated.