One disadvantage of the S corporation compared to the LLC is that S corporations lack flexibility of creating different classes of economic interests for its owners. This limits the ability of an S coproation to give special interests in the corporation to its key employees. An option might be for the S corporation to create a limited liability company and to grant profits interests in the LLC to its key employees.
It is essential that the corporation be dissolved with the New Jersey State Treasurer through the Division of Revenue to avoid future Corporation Business tax, penalty, and interest.
