New Jersey to Offer Streamlined Business Dissolution and Reinstatement Program
October 11, 2019
The New Jersey Department of the Treasury will be offering a temporary program designed to help businesses return to good standing with the state without the cumbersome filing process typically associated with reinstatement or dissolution.
Before this program, business entities that were in revoked status due to a failure to comply with state administrative reporting requirements were required to follow multiple overlapping steps, and, in many cases, obtain a tax clearance certificate in order to reinstate their legal authority to operate or officially terminate their charters. However, under a recently enacted law, a simplified process will allow businesses that are in revoked status to either fully reinstate or officially dissolve through a single online filing.
This temporary program will run from March 1 to June 15, 2020. In February, the Division of Revenue and Enterprise Services will mail a notice to businesses that may be eligible to participate in the program. The notice will explain the program and the steps that businesses need to take to participate.
During the temporary program period, the Division will provide an online reinstatement and dissolution service that eliminates the need for multiple filing forms, numerous fees and, in the case of corporations, applications for tax clearance. Under the program, the filer will be required to pay a one-time administrative fee of $500 (plus a convenience or credit card processing fee) and attest that the business has satisfied any known New Jersey tax obligations. The Division will also implement system features that help business representatives make accurate attestations.
Benefits of the program include:
- Fully automated filing process – no need for additional filing forms
- Minimal information – no need to submit full annual report details to dissolve or reinstate
- Expedited processing – reinstatement or dissolution occurs within one business day instead the normal processing which can take many months
- Tax clearance is not required
- Definitive closure of the business – no exposure to future compliance notices from the Department of the Treasury
- Cost – on average, businesses will not pay more by way of fees to dissolve
Further information and instructions will be provided in February.