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Old 12-23-2007, 05:14 PM
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I am not sure why you established an S corporation, first of all you will have to pay an annual filing fee of $500 and secondly, you will be subject to salary problems subject to Workers Compensation issue.

"Workers' compensation insurance is a state-mandated insurance requirement for most employers, in almost every state. In the State of New Jersey, unlike some states, New Jersey law generally treats officers of a corporation as employees who must be covered by workers' compensation". So, you are right that unfortunately, you will be subject to Workers Compensation Insurance.

If you move your corporation to say New York, then doing business in NJ would not help you much, in that you would still be required to have NJ Workers compensation for he officer would be employed in NJ! If it was that simple all single member owners of 'S' corporations would register to NY state or for that matter a state other than NJ.

The solution in my opinion is to re-examine the premise of remaining an S corporation, assuming the Workers Compensation is a major financial burden to you, and consider becoming a new Limited Liability Company. This would save you from the Workers Compensation problem and the annual filing fee problem.
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