New York LLC Taxes
After you start a New York LLC, it's important to understand your tax obligations. The taxes your LLC owes depend on how it's classified, state and local rules, whether you sell taxable goods or services, and whether you have employees.
LLC Pass-Through Taxation
By default, LLCs don't pay taxes directly. Instead, the LLC members report the income (or losses) on their personal Form 1040 tax return. This is called pass-through taxation — tax responsibility "passes through" the LLC to its owners.
How Are LLCs Taxed in New York?
By default, a New York LLC is taxed by the IRS based on the number of members:
- An LLC with 1 owner (Single-Member LLC) is taxed like a Sole Proprietorship
- An LLC with 2+ owners (Multi-Member LLC) is taxed like a Partnership
These are the "default" statuses — automatically applied based on member count. You can also elect to have your LLC taxed as a Corporation (S-Corp or C-Corp) by filing extra paperwork with the IRS.
Single-Member LLC (default)
The IRS treats Single-Member LLCs as Disregarded Entities — the LLC doesn't file its own federal return. Instead, the owner reports LLC income on their personal Form 1040 (Schedule C if owned by an individual).
Multi-Member LLC (default)
Multi-Member LLCs file a Form 1065 Partnership Return and issue a Schedule K-1 to each member. Each member then reports their share of profits on their personal Form 1040.
Electing Corporate Taxation
- S-Corporation: File Form 2553 with the IRS. Can reduce self-employment taxes once the LLC has consistent profits (generally $70,000+ net income per member). Speak with an accountant first.
- C-Corporation: File Form 8832 with the IRS. Uncommon for small LLCs. Primarily useful for large employers offering healthcare fringe benefits.
New York State Income Tax
New York has a state income tax at rates of 4%–10.9% (graduated; NYC adds an additional 3.078%–3.876%). LLC members report their share of LLC profits on their New York state tax return.
Single-Member LLC owners file New York Form IT-201 (resident) or IT-203 (non-resident) and include LLC income. Multi-Member LLCs file New York Form IT-204 (Partnership Return) and issue NY Schedule K-1s to members.
LLC Filing Fee: New York imposes an annual LLC Filing Fee based on the LLC's New York-source gross income:
| NY Gross Income | Annual Fee |
| $0–$100,000 | $25 |
| $100,001–$250,000 | $50 |
| $250,001–$500,000 | $175 |
| $500,001–$1,000,000 | $500 |
| $1,000,001–$5,000,000 | $1,500 |
| $5,000,001–$25,000,000 | $3,000 |
| Over $25,000,000 | $4,500 |
Contact the New York State Department of Taxation and Finance at 518-457-5431 for more information.
New York Special LLC Taxes
New York LLC Filing Fee (Form IT-204-LL)
All New York LLCs must pay an annual LLC Filing Fee based on New York-source gross income, ranging from $25 to $4,500. This is filed on Form IT-204-LL (separate from the income tax return) and is due March 15 for calendar-year LLCs.
Local Income Tax
You and/or your LLC may also need to file and pay income taxes with your local municipality (city, county, etc.). Contact your local government or hire an accountant to confirm local requirements.
New York Sales Tax
If your LLC sells taxable products (and sometimes services) in New York, you may need to collect sales tax and register for a Seller's Permit (also called a resale license or sales tax permit).
New York's state sales tax rate is 4%. Counties and cities add their own rates — New York City's combined rate is 8.875%, and most counties range from 7%–8.875%.
Register for New York Seller's Permit →
Contact the New York State Department of Taxation and Finance at 518-485-2889 with questions.
New York LLC Payroll Taxes
If your New York LLC has employees, you must handle payroll taxes, which include:
- Federal income tax withholding
- New York state income tax withholding
- Social Security and Medicare taxes (FICA)
- Federal unemployment tax (FUTA)
- New York state unemployment tax (SUTA)
Payroll calculations are complex — most LLC owners hire a payroll service or accountant.
New York Tax Agency Contact
New York LLC Taxes — FAQs
Read the step-by-step formation guide with filing fees, processing times, and annual report deadlines.