CBT-2553: New Jersey S Corporation or New Jersey QSSS Election (Revision)
New Jersey · NJ Division of Taxation · Used for tax years 2025
Form CBT-2553 is a New Jersey corporation election form used to apply for S corporation status in the state. The election requires the consent of every shareholder and state approval.
Who files this form
Corporations seeking New Jersey S corporation status must apply for that status and receive approval. The text states that federal S corporation status does not automatically carry over to New Jersey.
Without the New Jersey filing and approval, the corporation’s New Jersey filings will be treated as those of a standard C corporation, with the rates that apply to that designation. Every shareholder must consent to the election.
When it's due
- 2025 tax year election: To take effect for the current tax year, the election must be filed within 3½ months from the beginning of the fiscal year. The printed example says a fiscal period beginning July 1 has an October 15 filing deadline.
- Revoking an election: The letter of revocation is due on or before the last day of the first tax year of the election. For an election whose first tax year is 2025, this means the last day of that tax year.
What you'll need
Before filing the election, the corporation must:
- Apply for S corporation status with the Internal Revenue Service.
- Be fully registered with the NJ Division of Revenue and Enterprise Services.
- Have a Certificate of Incorporation or a Certificate of Authority to do business in New Jersey.
- Have every shareholder’s consent to the election.
To revoke an election, prepare a letter of revocation signed by shareholders holding more than 50% of the outstanding shares on the day of revocation, and include a copy of the original election form.
How to file
File the New Jersey S Corporation Election using the online SCORP application after completing the federal application and New Jersey registration requirements. Out-of-state corporations must be authorized to do business in New Jersey.
To revoke an election, use the online SCORP application to file the signed revocation letter and a copy of the original election form with the NJ Division of Revenue and Enterprise Services.
Common mistakes
- Assuming federal S corporation status is enough. The text says New Jersey requires a separate filing and approval.
- Missing the election timing requirement. The election must be filed within 3½ months from the start of the fiscal year to take effect for that year.
- Leaving out shareholder consent. Every shareholder must consent.
- Overlooking New Jersey authorization. Out-of-state corporations must be authorized to do business in New Jersey.
Questions people ask
Does federal S corporation status automatically apply in New Jersey?
No. The text says the corporation must apply for New Jersey S corporation status and receive approval.
Must all shareholders agree to the election?
Yes. Every shareholder must consent.
How long can an accepted election remain in effect?
Once the election is made and accepted, the corporation may remain a New Jersey S corporation as long as it is a federal S corporation.
Who must sign a revocation letter?
The letter must be signed by shareholders holding more than 50% of the outstanding shares on the day of revocation. It must be filed with a copy of the original election form through the online SCORP application.