How are S corps taxed New York?
James Craig
Published Feb 21, 2026
Paying tax as a shareholder of a New York S corporation Shareholders pay New York tax on their pro rata share of the S corporation pass-through items of income, gain, loss, and deduction that are includable in their federal adjusted gross income.
Does New York require a separate S election?
If a corporation is a federal S corporation and wishes to make the same election for New York State, the corporation is required to file Form CT-6, Election by a Federal S Corporation to be Treated As a New York S Corporation, to receive approval before filing. Fax Form CT-6 to 518-435-8605.
How do I set up an S Corp in NYS?
How to Form a Corporation in New York
- Choose a corporate name.
- File your Articles of Incorporation.
- Appoint a registered agent.
- Start a corporate records book.
- Prepare corporate bylaws.
- Appoint initial directors.
- Hold first Board of Directors meeting.
- Issue stock to shareholders.
How are S corporations treated in New York?
Shareholders of eligible federal S corporations that haven’t made the election to be treated as a New York S corporation for the current tax year will be deemed to have made that election under Tax Law section 660 (i) if the corporation’s investment income is more than 50% of its federal gross income for that year.
Can a general business corporation be a New York’s Corporation?
Be a general business corporation taxable under Article 9-A or be the parent of a QSSS that is taxable under Article 9-A of the New York State Tax Law. Insurance corporations taxable under Article 33 or any corporation taxable under Article 9 can’t elect to be a New York S corporation.
Do you have to be a NY resident to own an S corporation?
A NY resident shareholder must include their pro rata share of NY S corporation income, gain, loss and deduction. However, if the corporation carries on business both in and out of NY, a nonresident shareholder will need the corporation’s business apportionment factor in order to determine their NY-sourced income. [xxxv]
Can a QSSS be a New York’s Corporation?
Be a federal S corporation. Be a general business corporation taxable under Article 9-A or be the parent of a QSSS that is taxable under Article 9-A of the New York State Tax Law. Insurance corporations taxable under Article 33 or any corporation taxable under Article 9 can’t elect to be a New York S corporation.
