In what is likely an attempt to clean up defunct and noncompliant corporations and limited liability companies, New Jersey has announced a simplified process to reinstate or dissolve suspended business entities for failure to file their annual reports. The normal requirements for this process have been significantly reduced under this temporary program. The program is scheduled to run from March 1, 2020, through June 15, 2020.
The program requires an administrative fee of $500 and the taxpayer to attest that the business has satisfied any know New Jersey tax liabilities. The reported benefits of the program include:
- Fully automated filing process – no need for additional filing forms
- Process requires minimal information – no need to submit full annual report details to dissolve or reinstate
- Expedited processing – reinstatement or dissolution occurs within 1 business day
- Tax clearance is not required
- For dissolving entities, definitive closure of the business – no exposure to future compliance notices from the Department of the Treasury
- Cost – overall cost is lower for companies with significant outstanding back-year fees due
Additionally, other changes to the process will be implemented moving forward. These changes include the elimination of the current reinstatement fees, establishes a waiver period for tax clearance and increases annual report fees to $75 due from for-profit entities and by $5 for not-for-profit entities effective July 1, 2019. The waiver period for tax clearance can be very beneficial as this part of the process has historically led to delays to obtaining reinstatements and completing dissolutions. Please contact your WG advisor for any questions regarding this program.