Consequences of not dissolving a C Corporation in State of NJ!
A Corporation that has ceased doing business in the State of New Jersey should be formally dissolved with the New Jersey State Treasurer through the Division of Revenue. In this manner, the Corporation would avoid the Corporation Business tax, penalty, and interest.
Every New Jersey Corporation must “submit New Jersey Corporation Business Tax Returns whether a corporation discontinued business” and it remains subject to at least the minimum tax ($500) on an annual until it legally dissolves through the New Jersey State Treasurer by the Division of Revenue.
The failure to legally dissolve the corporation when the corporation has ceased doing business will result in the legal requirement to continue to file Corporation Business Tax returns with the necessary $500 minimum Corporation Business Tax (CBT).
Hence, to avoid the recurring minimum CBT tax, a New Jersey Corporation that has discontinued its operations should legally dissolve itself.
Also, it is important to note that the failure to file the Corporation Tax Returns due to reason of inactivity or discontinued operations, would not relieve the minumum $500 CBT tax liability and New Jersey State would impose penalties and interest on this amount as well.
In conclusion, it is wise to formally withdraw or dissolve your inactive NJ corporation due to discontinued operations and I would consult a CPA or tax professional to accomplish this objective.