N-35 Sch. NS: Hawaii S Corporation Agreement of Nonresident Shareholder (Revision 2018)
Hawaii · Hawaii DoTax · Used for tax years 2024, 2025, 2026
Hawaii Schedule NS (Form N-35) records a nonresident shareholder’s agreement to file a Hawaii net income tax return and timely pay taxes on their share of an S corporation’s Hawaii income. The shareholder also agrees to Hawaii’s personal jurisdiction for collection of unpaid inco
Who files this form
Hawaii S corporations must timely file Schedule NS for each nonresident shareholder or pay the State an amount equal to that shareholder’s pro rata share of the corporation’s income attributable to Hawaii, multiplied by the highest marginal income tax rate for individuals.
The nonresident shareholder signs the agreement. If shares are jointly owned, each owner must sign a separate agreement.
What you'll need
Have this information ready to complete Schedule NS:
- Shareholder’s name, address, SSN or FEIN, and state of residence.
- S corporation’s name, address, and FEIN.
- Shareholder’s signature and the date signed.
How to file
Complete the shareholder and S corporation information, then have the nonresident shareholder sign and date the agreement.
Attach Schedule NS to the S corporation’s return for the first year the corporation is subject to section 235-128(c), Hawaii Revised Statutes, with respect to that shareholder.
Common mistakes
- Using one agreement for jointly owned shares. Each owner must sign a separate agreement.
- Leaving the agreement off the first applicable return. The form says to attach it to the S corporation’s return for the first year section 235-128(c), HRS, applies with respect to the shareholder.
- Assuming the agreement expires automatically. It remains valid until the nonresident shareholder revokes it in writing.
Questions people ask
What am I agreeing to when I sign?
You agree to file a Hawaii net income tax return and timely pay all Hawaii taxes on your share of the named S corporation’s Hawaii income. You also agree to be subject to personal jurisdiction in Hawaii for collection of unpaid income tax and related interest and penalties.
How long does the agreement remain valid?
It remains valid until you revoke it in writing.
Can joint owners use one agreement?
No. Each owner must sign a separate agreement.
Can the S corporation recover a payment it makes on a shareholder’s behalf?
Yes. The corporation is entitled to recover from the shareholder any payment it makes on the shareholder’s behalf under the requirement described in section 235-128(c), HRS.