New York · LLC tax election
New York LLC: S corp or C corp?
New York gives you two different answers depending on whether your office is inside or outside the five boroughs.
See New York at a glanceShort answer
In New York, an S corporation needs its own Form CT-6 and pays only a fixed dollar minimum ($25 to $4,500 by receipts), while a C corporation pays 6.5% on business income. In New York City the S election means nothing: the city taxes S corporations at 8.85%.
Last checked .New York at a glance
| Question | New York |
|---|---|
| S election recognized? | Not automatically: shareholders must file Form CT-6 for New York S status.1 |
| Separate state form and deadline | Form CT-6, by March 15 for a calendar-year company, or any time in the prior tax year.2 |
| Tax the S corp itself pays | Fixed dollar minimum only: $25 to $4,500, by New York receipts.3 |
| C corp rate and minimum | 6.5% flat, minimum $254 |
| Entity tax on a default LLC | Annual Form IT-204-LL fee: $25 for a disregarded LLC; multi-member fees run from $25 to $4,500.5 |
| Personal income tax | Yes, on wages and pass-through income6 |
What is different about New York?
New York runs a separate S election. The IRS accepting your Form 2553 is not enough: shareholders file Form CT-6 for the state, any time in the year before or by the fifteenth day of the third month of the year it applies to (March 15 for a calendar-year company). The state price of being an S corporation is small, a fixed dollar minimum from $25 to $4,500 based on New York receipts. Then there is the city. New York City has no S corporation election and does not recognize the state's, so a federal S corporation doing business there pays the General Corporation Tax, 8.85% of allocated net income under its main method. An LLC left alone in the city pays the 4% Unincorporated Business Tax instead.
Does New York recognize a federal S corp election?
New York S status takes two steps: the federal election, then Form CT-6 signed by all shareholders. File it any time in the preceding tax year or by the fifteenth day of the third month of the year it covers. The company then files Form CT-3-S and pays only the fixed dollar minimum tax, from $25 (New York receipts up to $100,000) through $50, $175, $300, $1,000 and $3,000 to $4,500 over $25,000,000. Owners report the profit on their personal returns. In New York City none of this carries over: an S corporation there still pays the General Corporation Tax.
Does my LLC need a separate New York election or form?
Form CT-6 can be filed any time in the preceding tax year or by the fifteenth day of the third month of the year it applies to (March 15 for a calendar-year company).2
What does New York tax an S corp or LLC at the entity level?
- A New York S corporation pays only the fixed dollar minimum franchise tax, which runs from $25 (New York receipts up to $100,000) to $4,500 (over $25,000,000).3
- A New York LLC pays an annual filing fee on Form IT-204-LL: $25 for a disregarded LLC with New York income, and for a multi-member LLC a fee that starts at $25 (up to $100,000 of New York source gross income) and tops out at 4,500 dollars for New York source gross income over 25,000,000 dollars.5
Is a New York LLC taxed as a C corp ever better?
A New York C corporation pays 6.5% on its business income, or 7.25% when the business income base is over $5,000,000. The tax can never fall below a fixed dollar minimum set by New York receipts, which starts at $25 and reaches $200,000 above $1 billion. The corporation pays first, and you pay personal tax again on dividends.
Do any New York cities tax S corps differently?
- New York City does not recognize the S election: federal S corporations in the city pay the City's General Corporation Tax on top of New York State's minimum tax.7
- The General Corporation Tax is the largest of four methods; the entire net income method is 8.85% of net income allocated to New York City, and there is a fixed dollar minimum of $25 to $5,000 based on New York City receipts.8
- New York City's Unincorporated Business Tax is 4% of income allocated to the city for unincorporated businesses, a category that includes limited liability companies and partnerships.9
Run your New York numbers
Outside the city, New York's small fixed minimum makes S status cheap to hold, so the question is mainly payroll savings against the added payroll cost. Inside the city, add the General Corporation Tax of 8.85% of net income (under its main method) to the comparison. That city tax can eat much of what the S election was supposed to save.
Result
How much would a New York LLC owner save as an S corp?
| Taxed as | At $80,000 profit | At $150,000 profit |
|---|---|---|
| Default LLC | $11,329self-employment tax $11,304 + New York LLC tax $25 | $21,219self-employment tax $21,194 + New York LLC tax $25 |
| S corp | $9,369payroll tax $7,344 + New York S corp tax $25 + $2,000 payroll and prep | $15,820payroll tax $13,770 + New York S corp tax $50 + $2,000 payroll and prep |
| C corp | $17,707payroll tax $7,344 + New York tax $2,080 + federal $6,283 + $2,000 payroll and prep | $31,451payroll tax $13,770 + New York tax $3,900 + federal $11,781 + $2,000 payroll and prep |
Assumes a 60% salary11 and a single filer. Income tax is left out. C corp dividends are taxed again. The S corp's fixed dollar minimum assumes receipts at least equal profit: $25 at $80,000, $50 at $150,000. A disregarded LLC's filing fee stays $25. New York City taxes are not included.
When is the Form 2553 deadline for a New York LLC, and what if I miss it?
Late relief: federal steps, deadline guide.
What to do next
How to start one, or have us form it from $123.75.
Registered agent $74.25/yr, annual report.
LLC vs S corp guide, election deadline, Form 2553 filed for $165.
More on New York: How to start a New York LLC · How to start a New York corporation · New York LLC cost · New York annual report · Annual report late fees by state
File the S-Corp Election for your New York LLC
We file Form 2553 for a flat $165.
Get the S-Corp ElectionCommon questions
Do I have to file Form CT-6 for a New York S corporation?
Yes. New York does not carry over the federal election automatically. File Form CT-6, signed by every shareholder, any time in the preceding tax year or by the fifteenth day of the third month of the tax year it applies to, which is March 15 for a calendar-year company.
What does a New York S corporation pay the state?
Only the fixed dollar minimum franchise tax under Form CT-3-S. It runs from $25 for New York receipts up to $100,000 to $4,500 for receipts over $25,000,000. The owners then pay personal income tax on the profit.
Does New York City recognize S corporations?
No. New York City has no S corporation election and does not recognize the state's election. A federal S corporation doing business in the city pays the General Corporation Tax, which uses 8.85% of net income allocated to the city under its main method, with a fixed dollar minimum from $25 to $5,000.
What is the New York City Unincorporated Business Tax for an LLC?
It is a 4% tax on income allocated to New York City for unincorporated businesses, a group that includes limited liability companies and partnerships. A default LLC with city income can owe it, while an S corporation owes the General Corporation Tax instead.
Does a New York LLC pay a yearly fee?
Yes. Form IT-204-LL sets an annual filing fee based on New York source gross income. A disregarded LLC or one with no New York income pays $25, and the multi-member LLC scale runs up to $4,500 for income over $25,000,000.
Sources 12 links, checked Nov 6, 2026
- New York does not follow the federal S election automatically; shareholders must file Form CT-6 to be treated as a New York S corporation for state purposes. tax.ny.gov, checked Nov 6, 2026
- Form CT-6 can be filed any time in the preceding tax year or by the fifteenth day of the third month of the year it applies to (March 15 for a calendar-year company). tax.ny.gov, checked Nov 6, 2026
- A New York S corporation pays only the fixed dollar minimum franchise tax, which runs from $25 (New York receipts up to $100,000) to $4,500 (over $25,000,000). tax.ny.gov, checked Nov 6, 2026
- New York taxes a C corporation's business income at 6.5% (7.25% when the business income base is more than $5,000,000), and the tax can never be less than a fixed dollar minimum that starts at $25 and climbs with New York receipts. tax.ny.gov, checked Nov 6, 2026
- A New York LLC pays an annual filing fee on Form IT-204-LL: $25 for a disregarded LLC with New York income, and for a multi-member LLC a fee that starts at $25 (up to $100,000 of New York source gross income) and tops out at 4,500 dollars for New York source gross income over 25,000,000 dollars. tax.ny.gov, checked Nov 6, 2026
- New York taxes individuals, so S corporation shareholders report their share of profit on their personal income tax returns. tax.ny.gov, checked Nov 6, 2026
- New York City does not recognize the S election: federal S corporations in the city pay the City's General Corporation Tax on top of New York State's minimum tax. nyc.gov, checked Nov 6, 2026
- The General Corporation Tax is the largest of four methods; the entire net income method is 8.85% of net income allocated to New York City, and there is a fixed dollar minimum of $25 to $5,000 based on New York City receipts. nyc.gov, checked Nov 6, 2026
- New York City's Unincorporated Business Tax is 4% of income allocated to the city for unincorporated businesses, a category that includes limited liability companies and partnerships. nyc.gov, checked Nov 6, 2026
- IRS: Form 1120 instructions, C corp rate irs.gov, checked Nov 6, 2026
- IRS: S corp reasonable compensation irs.gov, checked Nov 6, 2026
- IRS: Form 2553 instructions irs.gov, checked Nov 6, 2026
Last verified Nov 6, 2026.
This page explains the rules; it is not tax advice. Run your numbers with a CPA or enrolled agent before you elect.
Last verified Nov 6, 2026.