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Implications of NJ BAIT for Law Firms

NJ Senate Bill 3246 established the "business alternative income tax" (BAIT), an elective business tax regime for pass-through entities. Law firms are left wondering if electing to pay the BAIT is the right choice. This article summarizes how the NJ BAIT works, as well as its pros and cons.

4 minute read December 01, 2020 at 12:07 AM
By
Edward J. Sadowski
Implications of NJ BAIT for Law Firms

On Jan. 13, 2020, NJ Governor Phil Murphy signed into law Senate Bill 3246 (S. 3246) establishing the "business alternative income tax" (BAIT), an elective New Jersey business tax regime for pass-through entities (PTEs).

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