Does New York tax S corps?
John Thompson
Published Feb 13, 2026
Since the business owners then pay personal income tax on this money, many states do not tax S corporations. New York, however, is not one of these states; it requires S corporations to pay the corporation franchise tax.
How much does it cost to open an S corp in NY?
Creating a New York State S Corp Before electing S corp status, you must form a standard corporation by filing a certificate of incorporation with the Department of State. The total charge for creating a New York corporation is about $195.
How much is an S corp in NY?
How much does it cost to form an S Corporation? It costs about $125 to form a corporation in New York, excluding legal fees.
How are S corporations taxed in New York City?
As many of you know, NYC does not recognize Federal or New York State (“NY”) S corporation elections; instead, NYC generally treats S corporations as if they were regular C corporations, and imposes a corporate-level income tax on S corporations [ii] with income sourced in NYC: the General Corporation Tax (“GCT”). [iii]
Can a late S Corp file a tax return?
Until you receive approval from the IRS, your corporation will not be eligible to file an S-Corp tax return. What Is a Reasonable Cause of Late S-Corp Filing? You will be happy to know that when granting relief, the IRS can be fairly lenient. Upon reviewing court documents and tax journals, certain reasonable causes are nearly always approved.
How to file an extension for New York corporation tax?
If you cannot meet the filing deadline, you may request a six-month extension of time by filing Form CT-5.4, Request for Six-Month Extension to File New York S Corporation Franchise Tax Return, and paying your properly estimated franchise tax on or before the due date of the return.
When did the corporate tax reform take place?
The information on this page is applicable for tax years beginning on or after January 1, 2015, as corporate tax reform significantly altered the Article 9-A tax for such tax years. See S corporations – tax years beginning before January 1, 2015, for S corporation information for years prior to corporate tax reform.
