Save Taxes with New Jersey S Corp Kit
Turning your New Jersey business into an S corporation can save you thousands in payroll and income taxes a year, and the set-up is so easy you can do it yourself. All you need to do is fill out four forms:
Form 1: New Business Entity Filing
Regardless of what type of business entity you want to form, you will first need to download the Public Records Filing for New Business Entity form from the New Jersey Department of State website. On this form, indicate what type of business entity you wish to use for your S corporation. I personally recommend using a limited liability company, although you could also use a regular corporation or something else. Submit the completed form to the Department of State Office in Trenton.
Form 2: Business Registration Application
The second form you will need to fill out is the Business Registration Application. This form, which is also available from the New Jersey Department of State website, asks for your business's FEIN, or Federal Employer Identification Number. You will apply for that is the next step, so check the box for "Applied for". Then, send this form to the Department of State Office in Trenton as well.
Form 3: SS-4 for FEIN Application
To apply for an FEIN, fill out an SS-4 form. The IRS provides free downloadable versions of this form on its website. You should receive your federal employer identification number within a month or two of submitting the SS-4 form to the IRS.
Form 4: 2553 for Subchapter S Election
Once you receive your Employer Identification Number from the IRS, you can make the S corporation election. To do this, fill out a 2553 form, which you can find on the IRS website available for download. Send this completed form to the Internal Revenue Service Center in Cincinnati, Ohio. The IRS will analyze your application to be sure that you followed correct procedure in making the S corporation election and that you are eligible to make the election. Your business will then receive S corporation status a few weeks later.
If you feel that you need a bit more guidance than the brief instructions I provided, please consider purchasing one of my do-it-yourself S corporation kits. I sell two versions of my affordable kits, one for businesses using an LLC to form the S corporation and one for businesses using a traditional corporation.
LLC Do-It-Yourself Kit
LLCs tend to be a bit easier to manage and maintain, and for that reason I recommend using them over corporations. My LLC kit provides clear, easy-to-follow instructions for anyone who chooses to use an LLC to form their New Jersey S corporation. To make the process easier, I included completed examples of all the forms you will need for reference. As a bonus, I also included two sets of sample LLC operating agreements. One set is for LLCs with one owner, and the other set is for LLCs with multiple owners.Purchase and Download
Corporation Do-It-Yourself Kit
In a few rare cases, a business may benefit more from using a traditional corporation rather than a limited liability company. For example, a business may need to have the word "Corporation" or "Inc" in its name to gain credibility in its field. In that case, my corporation kit provides all the necessary information to set up an S corporation in New Jersey. Like the LLC version, it includes detailed steps to guide you through the entire process, as well as completed examples of all the forms for reference. And to further help your new business, I added a sample set of corporate bylaws, which you or your attorney may use to help you draft up your own bylaws.Purchase and Download
Additional Information You May Find Useful
If you want additional information about how to maximize the tax savings related to running a business or investment venture, you may also be interested in one of our downloadable e-books (see descriptions below). Each book covers a category of tax planning topics that easily save a business owner significant amounts of income or self-employment taxes (potentially thousands of dollars a year) and is instantly downloadable.
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