Originally Posted by minim84
I was just hired by the owner to prepare her 2015 S Corp Tax return. As per my review of her 2014 return, I notice that her previous Tax Preparer filed A NY Franchise Tax Return (CT-3-S-2014) and an NYC General Corp (NYC-3L) even when the business moved to NJ on Jan 14th, 2014.
you need to examine is whether the S corp is actually moving to NJ from NYS or just needing a physical presence in NJ? In other words, if the S corp is going to be starting operations in NJ, but will still also have operations in NYS, then you are most likely wanting to file for foreign authority to NJ instead of moving the charter there.
aslongas you maintain the old S corp and register to do business in a new state of NJ, then, you must pay duplicative annual report and/or franchise taxes. you?ll pay both a fee to your old state and a fee to NJ. However, Since S corps are ?pass-through? entities, there may be no immediate cost to the corp or its shareholders.
But say, If you?re permanently moving the S corp to NJ and you have no plans on operating your business in NYS, then the cleanest approach is to close the corp in NYS and register a new corp in NJ. While specifics may vary by state, ther S corp needs to file an ?Articles of Dissolution? or ?Certificate of Termination? document with NYS?s Secretary of State in order to dissolve the corp. The S corp will need to be in good standing (i.e. up to date on NYS taxes and state filings) in order to be dissolved.
Form a new s Corp with the Secretary of State in your new state