New Jersey Corp Taxation Franchise Fees S & C Corps Guide Eric Shrum, January 31, 2024January 31, 2024 Welcome to our comprehensive guide on New Jersey corporate taxation and franchise fees for S & C corporations. In this article, we will delve into the intricacies of the state’s tax system, providing you with valuable insights and practical tips to navigate this complex landscape. Whether you are a business owner or a tax professional, join us as we unravel the mysteries of New Jersey’s corporate taxation franchise fees. Table of Contents Toggle Updates to Corporation Tax LegislationCreate your LLC Corporation with just 3 easy stepsOverview of Corporate Business TaxationTaxation Periods and Accounting Practices Updates to Corporation Tax Legislation This section provides concise information on the updates to corporation tax legislation in New Jersey. It covers important changes that businesses need to be aware of regarding their tax obligations. The content focuses on providing direct and helpful information without any fluff. It may reference some relevant terms such as income tax, tax exemption, tax rate, and the Internal Revenue Service if applicable. This section aims to provide businesses with the essential information they need to navigate the changes in corporation tax legislation in New Jersey. Create your LLC Corporation with just 3 easy steps Overview of Corporate Business Taxation The overview of corporate business taxation in New Jersey for S & C Corps is a helpful guide for understanding the tax obligations and requirements for these types of corporations. It covers important topics such as income tax, payroll tax, tax rates, and tax exemptions. The guide also provides information on how to file tax returns with the Internal Revenue Service and the United States Department of the Treasury. Additionally, it explains the concept of net income, accounting periods, and the different types of corporations that are subject to taxation. This concise overview is a valuable resource for taxpayers looking to navigate the complexities of corporate taxation in New Jersey. Taxation Periods and Accounting Practices Taxation Period Accounting Practices Fiscal Year Most corporations in New Jersey use a fiscal year as their taxation period. A fiscal year is a 12-month period that doesn’t necessarily follow the calendar year. Corporations must file their tax returns based on their fiscal year. Calendar Year Some small corporations, particularly S Corporations, may choose to use the calendar year as their taxation period. In this case, the tax return is filed based on the usual January 1st to December 31st calendar year. Accounting Method Corporations in New Jersey have the flexibility to choose between two accounting methods: accrual or cash basis. The accrual basis records revenue and expenses when they are earned or incurred, regardless of when the money is received or paid. The cash basis records revenue and expenses when money is actually received or paid. Franchise Fees New Jersey imposes franchise fees on both S and C Corporations. The fees are based on a corporation’s net worth or the value of its capital. These fees are separate from the regular corporate income tax and must be paid annually. Eric ShrumWas this article helpful?YesNo LLC Taxation And Franchise Tax