StructureCost2026

LLC vs S corp in New York: which costs less (2026)

At $100,000 profit in New York, a single-member LLC costs $26,826 a year in tax and fees and an LLC taxed as an S corp costs $22,344. An LLC taxed as an S corp starts to cost less from about $52,500 of profit.

More settings revenue, salary, filing status, payroll costs, PTET

$4,482 a year

saved by switching from a single-member LLC to an LLC taxed as an S corp in New York, at these numbers.

Switching from a single-member LLC to an LLC taxed as an S corp starts to pay at about $52,500 of profit, with the same settings. As an LLC taxed as an S corp this uses the state's pass-through entity tax election, which lowers the cost here.

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

ItemLLCLLC as S corpChange
Biennial Statementdos.ny.gov, checked Oct 23, 2026$5$5$0
New York LLC annual filing fee (Form IT-204-LL), single-membertax.ny.gov, checked Oct 23, 2026$25$0−$25
Self-employment taxirs.gov, 2026 rates$14,125$0−$14,125
Federal income taxirs.gov, 2026 rates$8,230$8,876+$646
State income tax, after the PTET credittax.ny.gov, checked Oct 23, 2026$4,441$804−$3,637
Payroll tax on your salaryirs.gov, 2026 rates$0$6,884+$6,884
State disability and paid leavepaidfamilyleave.ny.gov, checked Oct 23, 2026$0$204+$204
Payroll service and tax return (estimate)$0$1,800+$1,800
New York S corporation fixed dollar minimum tax (Form CT-3-S)nysenate.gov, checked Oct 23, 2026$0$50+$50
New York pass-through entity tax, paid by the company (elected)tax.ny.gov, checked Oct 23, 2026$0$3,721+$3,721
Yearly cost$26,826$22,344−$4,482
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.

Yearly cost at each profit level

ProfitLLCLLC as S corpDifference
$30,000$6,112$8,092+$1,980
$50,000$11,667$11,955+$288
$75,000$18,683$15,563−$3,120
$100,000$26,826$22,344−$4,482
$150,000$44,811$37,416−$7,395
$200,000$63,380$53,409−$9,971
$300,000$108,323$87,901−$20,422

Federal and New York tax and fees, single filer, revenue 1.5 times profit, default salary for S and C corps. "Difference" is LLC taxed as an S corp minus Single-member LLC.

What the switch takes in New York

  1. Check the business can elect: no more than 100 shareholders, all of them US citizens or residents (no nonresident alien owners), and one class of stock. IRS
  2. File IRS Form 2553 to elect S corp tax treatment, within 2 months and 15 days of the start of the tax year it should apply to. See how the S corp election works.
  3. New York needs its own S election filing as well. 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.
  4. Register with New York as an employer and run payroll for your own salary: federal Forms 941 each quarter, Form 940 and a W-2 each year. New employers pay New York unemployment tax at 4.025% on the first $17,600 of wages. dol.ny.gov See what payroll costs.
  5. Federal return each year: Form 1120-S, due March 15, plus your own Form 1040.
  6. State upkeep each year: Biennial Statement, $9 every two years, due every two years, during the calendar month the Articles of Organization were filed. New for you: New York S corporation fixed dollar minimum tax (Form CT-3-S).

What changes between the two

A plain LLC pays self-employment tax of 15.3% on 92.35% of all profit, up to the Social Security wage base of $184,500. Taxed as an S corp, the business pays you a salary, and only the salary carries Social Security and Medicare tax. The rest comes out as a distribution.

The election adds costs: a payroll service, a separate business tax return (Form 1120-S), federal and New York unemployment tax on the salary, and New York S corporation fixed dollar minimum tax (Form CT-3-S). The calculator counts $1,800 a year for payroll and the return. The IRS expects a reasonable salary for the work, so it cannot be set near zero.

Questions

At what profit does an S corp election pay in New York?

About $52,500 a year, on the default salary (40% of profit, at least $30,000 where profit allows) and $1,800 of yearly payroll and return costs. Change the salary in the calculator to see how the point moves.

How much does it save at $100,000 in New York?

$4,482 a year: Single-member LLC $26,826, LLC taxed as an S corp $22,344.

Does New York recognise the S corp election?

Yes. New York needs its own election filing.

More for New York

Common cases in New York

Other states