Are transfers of disregarded entities subject to the bulk sale law?
Yes. For tax purposes, a disregarded entity is one that is separately taxed as part of a different entity. Disregarded entities that were previously formed with the New Jersey Secretary of State must register with the Division of Revenue in the Department of Treasury. Delays in the transfer can occur if an entity has been formed but is not registered. The Division of Taxation cannot give an escrow request to a purchaser for an entity that does not exist on the Division’s tax rolls. Accordingly, a C-9600 form notice will be considered incomplete if the Division is unable to identify the entity in its records.
