New York: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $4,464 a year less than a sole proprietorship in New York. All figures are 2026 tax and fees.

$4,464 a year

less as an LLC taxed as an S corp than as a sole proprietorship in New York, at these numbers. That includes the state's pass-through entity tax election.

New York, 2026: $100,000 profit, single filer

Structure

Yearly cost

vs yours

To set up

Sole proprietorship yours

$26,808

Itemized: $26,808

Self-employment taxirs.gov, 2026 rates	$14,130
Federal income taxirs.gov, 2026 rates	$8,235
State income taxtax.ny.gov, checked Oct 23, 2026	$4,443
Yearly cost	$26,808

Single-member LLC

$26,826

+$18

$1,200

Itemized: $26,826

Biennial Statementdos.ny.gov, checked Oct 23, 2026	$5
New York LLC annual filing fee (Form IT-204-LL), single-membertax.ny.gov, checked Oct 23, 2026	$25
Self-employment taxirs.gov, 2026 rates	$14,125
Federal income taxirs.gov, 2026 rates	$8,230
State income taxtax.ny.gov, checked Oct 23, 2026	$4,441
Yearly cost	$26,826

LLC taxed as an S corp lowest

$22,344

−$4,464

$1,200

Itemized: $22,344

Biennial Statementdos.ny.gov, checked Oct 23, 2026	$5
Payroll tax on your salaryirs.gov, 2026 rates	$6,884
State disability and paid leavepaidfamilyleave.ny.gov, checked Oct 23, 2026	$204
Payroll service and tax return (estimate)	$1,800
New York S corporation fixed dollar minimum tax (Form CT-3-S)nysenate.gov, checked Oct 23, 2026	$50
New York pass-through entity tax, paid by the company (elected)tax.ny.gov, checked Oct 23, 2026	$3,721
Federal income taxirs.gov, 2026 rates	$8,876
State income tax, after the PTET credittax.ny.gov, checked Oct 23, 2026	$804
Yearly cost	$22,344

S corporation

$22,344

−$4,464

$125

Itemized: $22,344

Biennial Statementdos.ny.gov, checked Oct 23, 2026	$5
Payroll tax on your salaryirs.gov, 2026 rates	$6,884
State disability and paid leavepaidfamilyleave.ny.gov, checked Oct 23, 2026	$204
Payroll service and tax return (estimate)	$1,800
New York S corporation fixed dollar minimum tax (Form CT-3-S)nysenate.gov, checked Oct 23, 2026	$50
New York pass-through entity tax, paid by the company (elected)tax.ny.gov, checked Oct 23, 2026	$3,721
Federal income taxirs.gov, 2026 rates	$8,876
State income tax, after the PTET credittax.ny.gov, checked Oct 23, 2026	$804
Yearly cost	$22,344

C corporation

$31,765

+$4,957

$125

Itemized: $31,765

Biennial Statementdos.ny.gov, checked Oct 23, 2026	$5
Payroll tax on your salaryirs.gov, 2026 rates	$6,884
State disability and paid leavepaidfamilyleave.ny.gov, checked Oct 23, 2026	$204
Payroll service and tax return (estimate)	$2,000
State corporate income taxnysenate.gov, checked Oct 23, 2026	$3,521
Federal corporate income tax (21%)irs.gov, 2026 rates	$10,637
Federal income taxirs.gov, 2026 rates	$4,790
State income taxtax.ny.gov, checked Oct 23, 2026	$3,724
Yearly cost	$31,765

What these figures count

State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
The 20% qualified business income deduction with its income limits and the professional-service rule.
Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in New York

Electing S corp tax treatment for an LLC starts to pay in New York at about $52,500 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

An S corp in New York can elect to pay the state's income tax itself, a pass-through entity tax of 6.85% to 10.9%, and the owner gets a credit for it. The company deducts it on the federal return, so it is not held to the SALT cap. The calculator uses it when it lowers the totaltax.ny.gov.

Profit	Sole prop	LLC	LLC as S corp	C corp
$30,000	$6,090	$6,112	$8,092	$8,486
$50,000	$11,644	$11,667	$11,955	$14,463
$75,000	$18,662	$18,683	$15,563	$21,994
$100,000	$26,808	$26,826	$22,344	$31,765
$150,000	$44,792	$44,811	$37,416	$53,283
$200,000	$63,357	$63,380	$53,409	$74,028
$300,000	$108,313	$108,323	$87,901	$116,919

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in New York

	LLC	Corporation
Filing to form	$200Articles of Organization (DOS-1336)	$125Certificate of Incorporation (DOS-1239)	dos.ny.gov
Newspaper notice after forming	about $1,000	none
Yearly report	Biennial Statement, $9 every two years	Biennial Statement, $9 every two years	dos.ny.gov
Report due	Every two years, during the calendar month the Articles of Organization were filed	Every two years, during the calendar month the Certificate of Incorporation was filed
New York LLC annual filing fee (Form IT-204-LL), single-member$25	yes	no	tax.ny.gov
New York S corporation fixed dollar minimum tax (Form CT-3-S)by a table of gross receipts	if taxed as S corp	S corp only	nysenate.gov

New York taxes personal income in 9 brackets, from 3.9% to 10.9% (2026, single filer). tax.ny.gov
C corporations pay 6.5% to 7.25% of net income, with a minimum of $25. nysenate.gov
New York follows the federal S corp election.
New employers pay state unemployment tax of 4.025% on the first $17,600 of each employee's wages. That applies to an owner's salary from an S or C corp. dol.ny.gov
NY Paid Family Leave (employee): 0.432% withheld from wages up to $95,349. paidfamilyleave.ny.gov
NY disability benefits (DBL, employee share, max $0.60 per week): 0.5% withheld from wages up to $6,240. wcb.ny.gov
Within 120 days of formation the LLC must publish a notice in two newspapers (one daily, one weekly) chosen by the county clerk, for six weeks, then file a Certificate of Publication ($50 state fee, included in the typical figure). Newspaper charges vary hugely by county: roughly $100 to $300 in low cost counties such as Albany, often $1,000 to $2,000 in New York County (Manhattan). The $1,000 figure is a middle estimate for a typical filing. Failure to publish suspends the LLC's authority to do business.
The organization tax on shares (Tax Law section 180) was repealed from 2015, so the $125 filing fee is the whole state cost.

Not in the calculator: New York City: residents pay city income tax (3.078% to 3.876%); NYC businesses that are sole props, partnerships or LLCs pay the 4% unincorporated business tax, and S corporations pay the NYC general corporation tax (8.85% or a fixed minimum) because NYC ignores the S election. In the MCTD (NYC plus Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, Westchester) self-employed people with net earnings over $150,000 pay MCTMT of 0.60% (NYC) or 0.34% (suburban counties) on all such earnings. Yonkers residents pay a surcharge on their net state tax (16.75%) and nonresidents working there pay 0.5% of wages.

Switching calculators for New York

By profession in New York

Questions

Is an S corp worth it in New York?

On these figures, from about $52,500 of profit. At $100,000 an LLC taxed as an S corp costs $22,344 a year against $26,826 for a plain LLC, $4,482 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in New York?

The state charges Biennial Statement, $9 every two years. LLCs can also owe New York LLC annual filing fee (Form IT-204-LL), single-member. Forming one costs $200 plus about $1,000 for the required newspaper notice.

Does New York recognise the S corp election?

Yes. New York needs its own S election form. A federal S corporation must also file Form CT-6 and get New York approval to be a New York S corporation. If it doesn't, it files as a C corporation (CT-3). New York City does not recognize S corporations: they pay the NYC general corporation tax.

What income tax does New York charge?

New York taxes personal income in 9 brackets, from 3.9% to 10.9% (2026, single filer). C corporations pay 6.5% to 7.25% of net income, with a minimum of $25.

How this page models New York (2)

New York sets no official publication fee because the newspapers chosen by the county clerk set their own prices, so the page uses a typical middle cost for a published notice plus the state's Certificate of Publication fee.
The C corporation fixed dollar minimum rises with New York receipts under Tax Law section 210, but the schema holds one minimum, so the page uses the lowest step that applies to a small business with receipts up to $100,000.

Sources checked 2026-10-23. Each figure links to the state or IRS page it comes from.

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