Corporate Transactions and Compliance Blog

NJ Temporarily Expedites Reinstatement and Dissolution Processes

Written by Joan Helwig, Esq. | Fri, Feb 21, 2020

Signed by Governor Phil Murphy on June 30th, 2019, Assembly Bill 5607 established a temporary program in New Jersey allowing expedited reinstatement or dissolution of certain business entities which have had their charters revoked or placed on the inactive list, often the result of failing to file annual reports or tax returns with the State Treasurer.

Streamlined Business Reinstatement and Dissolution Program

From March 1st, 2020 through June 15th, 2020, New Jersey’s Division of Revenue and Enterprise Services will provide an online self-service reinstatement and dissolution service that eliminates the need for multiple fees and filing forms, including applications for corporate tax clearance. (Corporate tax clearance is not required as part of the program.) Filers utilizing the program must pay a one-time $500 administrative fee, plus a payment processing fee, and attest that the business has met known state tax obligations. This temporary program helps mitigate the extensive requirements for reinstatement in New Jersey.

In addition to the reduced filing burdens and expedited processing of filings, dissolving entities will get definitive closure of the business without any exposure to future compliance notices from the Department of the Treasury, according to information from the New Jersey Division of Revenue and Enterprise Services included in the link listed above.

Other Notable Changes

AB 5607 also included a Tax Clearance Certificate requirement for domestic and foreign limited liability companies (LLCs) and domestic limited partnerships (LPs) filing reinstatement requests two or more years after the entity has been placed on the inactive or revoked list.

There were a few filing fee changes as well. As of July 1st, 2019, annual report filing fees increased from $50 to $75 for for-profit business entities and from $25 to $30 for nonprofit entities. The $200 reinstatement assessment fee for corporations and LLCs was eliminated.  

Full text of AB 5607.

 

This content is provided for informational purposes only and should not be considered, or relied upon, as legal advice.