How much did Closet Storage Concepts pay in New Jersey income taxes?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
d net. Use taxes assessed on materials purchases are recorded as accrued liabilities on the balance sheet until remitted to the state agencies.
Income Taxes
The Company has elected to be taxed under the provisions of Subchapter S of the Internal Revenue Code for federal and state income tax purposes. Under those provisions, the Company does not pay corporate income taxes on its taxable income. Instead, the stockholder is liable for individual federal and state income taxes on the Company's taxable income. Therefore, no provision or liability for federal income taxes has been included in the financial statements. However, there is a provision for the required state income taxes.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Income Taxes (Continued)
While the Company has elected New Jersey S corporation status, it has also made an annual election for the 2024 New Jersey Pass‐Through Business Alternative Income Tax (PTE).
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the company has elected to be taxed under Subchapter S of the Internal Revenue Code for federal and state income tax purposes. Because of this election, Closet Storage Concepts does not pay corporate income taxes on its taxable income. Instead, the stockholder is liable for individual federal and state income taxes on the company's taxable income. Therefore, the financial statements do not include a provision or liability for federal income taxes. However, there is a provision for the required state income taxes.
Closet Storage Concepts has also made an annual election for the New Jersey Pass-Through Business Alternative Income Tax (PTE). Under this election, the company agrees to pay tax due on the owner's share of the distributive proceeds. The owner may then claim a refundable tax credit for the amount of tax paid by the pass-through entity on their share of distributive proceeds.
The excerpt does not specify the exact amount of New Jersey income taxes paid by Closet Storage Concepts. To get this information, a prospective franchisee should review the financial statements included as Exhibit E and consult with the franchisor directly.