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NEW YORK

Why Form a Corporation in New York?


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Fees and Taxes for Your New York State Corporation

You’ll need to pay certain taxes and fees for your New York S Corp or C Corp. We’ve included the more common ones below.

Common Fees for a New York Corporation

  1. Fees for forming a corporation in New York: Learn about standard filing costs here for NY corporations.

  2. New York State Biennial Report Fee: A fee every other year when you file your biennial report.

  3. New York Permits and Licenses: These are the fees for creating or renewing your licenses and permits on a regular basis. These depend on the type of New York corporation you’re operating and where you’re located.

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Taxes Payable by Your New York Corporation

The way that New York S Corporations and C Corporations pay taxes is different. We’ll take each one separately.

Taxes Payable by Both S Corporations and C Corporations in New York

Payroll Tax Payable to the IRS

Your New York corporation will need to pay employer payroll tax to the IRS on salaries paid to employees.

New York State Income Tax

Anyone who takes earnings out of your New York corporation will need to pay New York state income tax. Find out more on the New York State Department of Taxation and Finance website.

New York State Sales and Use Tax

If your NY corporation is selling products or services in New York, you may need to pay a state sales tax. Find out more on the New York State Department of Taxation and Finance website.

New York State Corporation Employee Taxes and Insurance

You may also need to pay tax and insurance for any employees, like employee compensation insurance or unemployment tax. There will also be other requirements you have for employees.

Get more requirements from the New York State Department of Labor website.

Your New York Corporation Will Need to Pay Estimated Taxes

Most New York corporations will need to pay estimated taxes throughout the year, depending on the amount of income and profit you expect to make. The most common types of estimated tax are:

  • Federal income tax

  • Federal self-employment tax

  • New York state tax

Most New York S Corporations and C Corporations will pay estimated taxes four times a year. Speak to your accountant for more information.

Other Taxes in New York State

You may need to pay other taxes and fees, depending on the type of New York corporation you run. Find out more on the New York Department of Taxation and Finance website.

New York State Department of Taxation and Finance website.

Taxes Payable by New York S Corporations

Self-Employment Tax

Because your New York corporation income flows through to your personal tax return, you must pay self-employment tax (also known as FICA, Social Security or Medicare tax) on your earnings. This is typically at a rate of 15.3 percent. You will be able to deduct your business expenses from your income when working out how much self-employment tax you owe.

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You will be able to deduct your business expenses from your income when working out how much self-employment tax you owe. Here are some examples of how much self-employment tax you may need to pay, depending on your earnings:

  • On profits of $20,000, you would pay self-employment tax of $3,060

  • On profits of $50,000, you would pay self-employment tax of $7,650

  • On profits of $90,000, you would pay self-employment tax of $13,770

  • On profits of $140,000, you would pay self-employment tax of $21,420

In some cases, part of the income from an S Corporation can be paid as a “distribution” rather than “salary,” so it would not be subject to self-employment tax.

File your New York S Corp Tax Election with Incfile

Taxes Payable by New York C Corporations

Corporation Tax

New York C Corporations must file corporate tax returns with the IRS and pay corporation taxes on their profits. Shareholders must also pay tax on dividends received from a New York C Corporation, which does result in “double taxation.”

Stock Dividends From C Corporations

A New York C Corporation may pay shareholders dividends as a share of the profits of the company. The value of dividends that each shareholder is entitled to depends on how many shares they own.

Dividends that are distributed to shareholders are taxed twice, first at the corporate level as profit (on the corporation’s Form 1120) and again at the individual level as stock dividends (on the shareholder's Form 1040).

Taxes Payable by All Individuals Working for New York Corporations

Pay Federal Income Tax on New York Corporation Earnings, Dividends and Distributions

You will need to pay regular federal income tax when you file your tax return every year.

Ready to Start Your New York Corporation?

Incfile provides a cost-effective service to help you create your New York corporation. We guide you through the process and handle most of the administrative steps, such as filing the necessary forms on your behalf.

Our basic package also provides a free Registered Agent service for the first year. If you're looking for help starting an S Corporation or C Corporation, our comprehensive services provide outstanding value.

Start your New York S Corporation Start your New York C Corporation

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What are the fees and requirements to form a business in New York?

Filing Time and Price

The state charges this amount to file a new business entity. This fee goes directly to the Secretary of State.

State Fee State Filing Time Expedited Filing Time
$130 5 Business Days 1 Business Day

Compliance Requirements

This report is mandatory and must be filed within the specified time frame in order for the entity to remain in good standing with the state. Failure to file this report can lead to the company being revoked or administratively dissolved.

Annual Report

Frequency: Biennially

Due Date: During anniversary month of organization.

Filing Fee: $9

Important: Section 206 of the New York State Limited Liability Company Law requires that within 120 days after the effectiveness of the initial articles of organization, a limited liability company (LLC) must publish in two newspapers a copy of the articles of organization or a notice related to the formation of the LLC. The newspapers must be designated by the county clerk of the county in which the office of the LLC is located, as stated in the articles of organization. After publication, the printer or publisher of each newspaper will provide you with an affidavit of publication. A Certificate of Publication, with the affidavits of publication of the newspapers attached, must be submitted to the New York Department of State, Division of Corporations, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231. The fee for filing the Certificate of Publication is $50.

(We do not assist in the filing of the Publication Requirement)

Learn more about starting a business in New York

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