New York state imposes a tax on domestic and foreign corporations for exercising their corporate franchise, doing business, employing capital, owning or leasing property or maintaining an office in the state. For more information on corporate taxes, please visit the
New York State Office of Taxation and Finance.
C Corporation Taxes
A C corporation is a standard business corporation with an unlimited number of shareholders and profits and losses taxed directly to the company.
The corporate income tax is .09 percent of your subsidiary capital plus the greater of:
- 7.5 percent of net income
- 0.178 percent of capital (not to exceed $350,000)
- 2.5 percent of minimum taxable income or
- a fixed dollar minimum tax ($1,500 maximum)
S Corporation Taxes
With an S corporation, the income or loss generated by the business is reflected on the owners’ personal income tax returns. S corporations are limited to no more than 100 shareholders and may not have non-U.S. residents as shareholders.
The corporate income tax on S corporations is equal to the greater of the corporate income tax that would be computed on the net income of a New York C corporation or the fixed dollar minimum tax, reduced by the amount of tax that would be computed on the net income based on the highest personal income tax rate in effect for the tax year; provided, however, that the corporate income tax isn't less than the fixed dollar minimum tax. The rate used is 7.1425 percent.
Qualifying small businesses that are either a C corporation or S corporation pay a lower tax rate on their net incomes.
Partnerships
A business partnership itself isn't subject to corporate taxes but the income received from a partnership is subject to personal income taxes.
Limited Liability Companies
In New York state an LLC will be treated, for tax purposes, like a partnership.
Sole Proprietorships
Sole proprietorships are subject to New York personal income taxes.