All business entities that qualify for and elect to be treated as partnerships for federal income tax are treated as partnerships for New Jersey Gross Income Tax purposes.
For New Jersey Gross Income Tax purposes, every partnership or limited liability company (LLC) that has income from sources in the State of New Jersey, or has a New Jersey resident partner, must file the New Jersey Partnership return, Form NJ-1065.
Form NJ-1065 is no longer solely an information return. Form NJ-1065 must be filed by a partnership even if its principal place of business is outside New Jersey. Tax may be required to be remitted on behalf of nonresident partners. Tax is imposed on the partners on income and gains derived from a partnership. Income and gains derived from a partnership are taxed whether or not they are actually distributed.
More information is available regarding the reporting of partnership income in publication GIT-9P , Income From Partnerships, as well as Technical Bulletin TB-55 Partnership Filing Fee and Nonresident Partner Tax.