When business owners seek to dissolve their entities in an orderly fashion, they may find that the process will take much longer, and cost much more, than they thought. Consider the following…
Dissolution, then and for now…
Most New Jersey business entities are required to file annual reports and pay an accompanying filing fee. If an entity fails to comply, the state can “revoke” the entity’s “good standing.” Under current law, revoked business entities seeking to dissolve in an orderly fashion are required to reinstate their good standing and, in some cases, first obtain tax clearance. Unfortunately, these requirements can delay and add cost to the dissolution process.
The New Jersey Department of Treasury announced a program designed to facilitate the dissolution of businesses in revoked status for failure to comply with annual reporting rules. The one-time program will run from March 1, 2020 through June 15, 2020. During this period, the Division of Revenue and Enterprise Services will provide an online self-service reinstatement and dissolution process that eliminates the need for multiple filing forms, multiple fees and, in the case of corporations, applications for tax clearance. The filer will be required to pay a one-time administrative fee of $500 (plus a convenience fee for credit card processing), and attest that the business has satisfied any known state tax obligations.
Business owners wishing to terminate business entities in revoked status should carefully consider taking advantage of this one-time program. Please feel free to contact me for more information about dissolving and terminating business entities.
Barry F. Gartenberg, L.L.C.
Attorney at Law
505 Morris Avenue, Suite 102
Springfield, New Jersey 07081
DISCLAIMER: This BLOG post is provided solely for the general interest of the reader. It is not legal advice or opinion. Legal advice and opinion are provided by the firm only upon engagement with respect to specific factual situations.