I have a client who registered his S Corp through NY State but he is based out of NJ. I filed a NY state and NYC corp return for him last year. He had just started and made no money so it was only a minimum tax of $25 for each one. Do I need to file a NY and NYC return for him going forward? He has clients in NYC but he works out of NJ. He is not registered with NJ. He started paying himself a salary but it is applying to NJ income taxes since he is based in NJ. Please advise. Thanks.
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NY S Corp
If the taxpayer transacts business in NYC-and there is nexus - then the corporation is obligated to
file NYS/NYC corporation returns - so it shouldn't dissolve even if it wants to.Uncle Sam, CPA, EA. ARA, NTPI Fellow -
New York Corporation
From the facts given, this is a domestic New York Corporation, and a FOREIGN New Jersey Corporation.
A New York return will be filed so long as the corporation is registered in New York. It will also have to file in New Jersey as a foreign corporation, with allocated factors determining the liability - allocated factors such as payroll, investment, and sales.
This is very much similar to thousands of corporations registered in Delaware - a favorite incorporation state for legal purposes. A Delaware return is always needed, even though no one in the corporation ever sets foot in Delaware.Comment
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My client is not currently registered in NJ. My program will not allow me to file the NJ return since he does not have a NJ corporation ID. This client did not make a lot of money. I would have to wait til next year to file the NJ return then, right?Comment
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Your client should register with NJ as a foreign corporation NOW to be ready to
file 2016 return.Uncle Sam, CPA, EA. ARA, NTPI FellowComment
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