New Jersey Retroactive S Election Application

Retroactive S Election Application
Form CBT-2553-R
S Corporation Status
Corporations may elect to register in New Jersey as a Sub-Chapter S corporation. Since the S
corporation status for federal purposes does not automatically flow through for New Jersey state
purposes, you must apply for S corporation status in this state and receive approval of the
election. Without this filing and approval, your filings in New Jersey will be considered as those
of a standard C corporation with all the rates that apply to that designation.
The steps to apply for S Corp status in New Jersey are as follows:
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Apply for S corporation status with the Internal Revenue Service
 Be fully registered with the NJ Division of Revenue and Enterprise Services, and have a
Certificate of Incorporation or a Certificate of Authority to do business in this State.
 File a New Jersey S Corporation Election using the online SCORP application.
For the election to be in effect for the current tax year, the New Jersey S Corporation Election
must be filed within 3 ½ months from the beginning of the fiscal year. For example, filing of the
election for a fiscal period beginning July 1 must be done by October 15.
Every shareholder of the corporation must consent to this election. Out-of-state corporations
must be authorized to do business in New Jersey.
Once an election is made and accepted, a corporation may remain a New Jersey S corporation as
long as it is a Federal S corporation. To revoke an election, a letter of revocation must be filed
with the NJ Division of Revenue and Enterprise Services, using the online SCORP application,
signed by all shareholders holding more than 50% of the outstanding shares of stock on the day
of the revocation and filed with a copy of the original election form. The filing deadline for a
letter of revocation is on or before the last day of the first tax year of the election.
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S-Corp Frequently Asked Questions