Key Takeaways
- New York taxes LLC pass-through income at Graduated, 9 brackets from 4% to 10.9%
- LLC Filing Fee (IT-204-LL) and NYC Unincorporated Business Tax (UBT): IT-204-LL: $25 to $4,500 tiered by New York-source gross income (owed even at $0 NY income); NYC UBT: 4% of NYC-allocated business income for LLCs doing business in the city, after exemptions and credits, due IT-204-LL due the 15th day of the 3rd month after year-end (around March 15), no extensions permitted
- Sales Tax: 4% (combined: 8.875%)
- Biennial Statement due Every 2 years, during the LLC's anniversary month, $9 fee
- Federal self-employment tax of 15.3% applies to net LLC profit regardless of state
- New York does not automatically follow the federal S-Corp election — it requires a separate New York State S-election filed on Form CT-6 to be treated as an S-corp for state tax purposes. Skipping this step means New York will tax the entity as if the federal election never happened.
- Same-day formation and compliance filing available through LLC Attorney at no markup on state fees
New York is one of the most compliance-dense states in this guide, and it's easy for a first-time LLC owner to miss a piece of it: a graduated income tax reaching 10.9% (higher still with NYC's city tax layered on), an LLC Filing Fee owed every year regardless of profit, a mandatory newspaper publication requirement most other states don't have, and — for New York City businesses — a separate 4% Unincorporated Business Tax with its own S-Corp exemption quirk.
This guide covers exactly what a New York LLC owes in 2026: state and NYC income tax, the income-tiered IT-204-LL fee that catches solo owners off guard, the publication requirement and its wildly variable county-by-county cost, the Biennial Statement, and when an S-Corp election is worth it — including the NYC-specific reason it might matter more than the SE-tax savings alone.
New York Personal Income Tax on LLC Profit
By default, a New York LLC is a pass-through entity — the LLC itself doesn't pay New York income tax on its profit. That profit flows through to the owners' personal returns, taxed once at the federal level and once at New York's graduated rate (4%–10.9%), with NYC residents adding city tax on top. This is one of the steepest combined pass-through tax burdens of any state in this guide.
New York's rate: Graduated, 9 brackets from 4% to 10.9%
2026 single-filer brackets: 4% up to $17,150; 4.5% from $17,150–$23,600; 5.25% from $23,600–$27,900; 5.85% from $27,900–$161,550; 6.25% from $161,550–$323,200; 6.85% from $323,200–$2,155,350; 9.65% from $2,155,350–$5,000,000; 10.3% from $5,000,000–$25,000,000; 10.9% above $25,000,000. The FY2026 state budget cut the bottom five brackets by 0.1 point and extended the top 'millionaire' brackets through 2032.
New York City residents pay a separate city personal income tax on top of state tax, ranging from 3.078% to 3.876% depending on income — meaning an NYC-based LLC owner's combined top marginal state-plus-city rate can exceed 14%.
New York's LLC Filing Fee (IT-204-LL) and NYC Unincorporated Business Tax (UBT)
New York doesn't have a traditional franchise tax on LLCs, but the IT-204-LL fee functions like one in practice — every LLC required to file a New York partnership or disregarded-entity return owes at least the $25 minimum, regardless of profitability or whether any income was actually sourced to New York. NYC-based LLCs owe the additional 4% Unincorporated Business Tax on top, unless they've made the single-member S-Corp election that exempts them from it.
The IT-204-LL LLC Filing Fee is tiered by New York-source gross income: $25 ($0–$100K), $50 ($100K–$250K), $175 ($250K–$500K), $500 ($500K–$1M), $1,500 ($1M–$5M), $3,000 ($5M–$25M), $4,500 (over $25M). Critically, a single-member disregarded LLC with zero New York-source income still owes the $25 minimum — there's no exemption for inactive or pre-revenue entities. Separately, NYC imposes its own 4% Unincorporated Business Tax on LLCs doing business in the city, after a phasing-out $5,000 exemption and a credit that fully offsets UBT liability up to roughly $95,000 of income. The single biggest structuring lever here: NYC exempts single-member LLCs that elect S-Corp status from UBT entirely. New York recognizes the federal S-Corp election for state purposes only after a separate New York State S-election is filed on Form CT-6.
New York Sales Tax
The state rate is 4%, but combined state, NYC, and county rates run up to 8.875% in New York City, with a statewide average combined rate around 8.54%. Register for free through the NY Tax Department before making any taxable sale of tangible personal property or enumerated services.
- State rate: 4%, combined: 8.875%
- Registration: Sales Tax Certificate of Authority, No fee fee with the New York State Department of Taxation and Finance
- You must register for and receive your Certificate of Authority before making your first taxable sale in New York — selling without one can trigger penalties even if you later register.
New York Annual Report Requirement
New York requires every LLC to file Biennial Statement with the New York Department of State, due Every 2 years, during the LLC's anniversary month. Filing fee: $9.
The $9 Biennial Statement is separate from and in addition to the annual IT-204-LL filing fee owed to the Tax Department — don't conflate the two. On top of both, most newly formed New York LLCs must satisfy a mandatory publication requirement: publishing notice of formation in two newspapers (one daily, one weekly) for 6 consecutive weeks in the county of formation, then filing a Certificate of Publication (Form 1708, $50 fee) within 120 days of formation. Total publication cost varies enormously by county — from roughly $230 in Albany to $1,950 or more in Manhattan, since newspaper rates are set locally and Manhattan's designated papers are expensive.
Failing to complete the publication requirement doesn't dissolve the LLC, but it suspends the LLC's authority to conduct business in New York until the requirement is cured — a real operational risk, not just a paperwork formality. Biennial Statement delinquency can separately affect good standing with the Department of State.
Federal Self-Employment Tax and How Your New York LLC Is Classified
Regardless of which state you're in, LLC owners who materially participate in the business owe federal self-employment tax — 15.3% on net profit, covering Social Security (up to the $184,500 (2026) wage base) and Medicare (no cap).
Single-Member LLCs
A single-member New York LLC defaults to a disregarded entity for federal tax purposes — you report income on Schedule C and pay self-employment tax via Schedule SE. New York still requires the LLC to file Form IT-204-LL and pay at least the $25 minimum fee, even with zero New York-source income — a trap for solo owners who assume disregarded status means no state filing at all.
Multi-Member LLCs
A multi-member New York LLC defaults to partnership taxation, filing Form 1065 federally and issuing each member a Schedule K-1, plus the state's own IT-204 partnership return and the associated IT-204-LL fee tiered by NY-source gross income.
Should Your New York LLC Elect S-Corp Taxation?
An S-Corp election lets you split LLC profit into a reasonable salary (payroll-taxed) and distributions (not subject to self-employment tax), once the business is consistently profitable enough to justify the added payroll complexity.
New York's treatment: New York does not automatically follow the federal S-Corp election — it requires a separate New York State S-election filed on Form CT-6 to be treated as an S-corp for state tax purposes. Skipping this step means New York will tax the entity as if the federal election never happened.
Given New York's steep graduated rates (up to 10.9%, plus NYC's city tax on top), the federal SE-tax savings from an S-Corp election can be meaningful — but for NYC-based businesses, the bigger driver is often the NYC Unincorporated Business Tax exemption available to single-member LLCs that elect S-Corp status, since that can eliminate a 4% tax entirely rather than just reducing SE tax. Also worth factoring in: New York's Pass-Through Entity Tax (PTET) election, which lets the entity pay New York tax at the entity level (6.85%–10.9% tiered) so owners can deduct it federally around the SALT cap. The 2026 PTET election deadline is March 15, and once the first estimated payment is made, the election becomes irrevocable for the year.
New York LLC Tax Costs at a Glance
How to Handle Your New York LLC's Taxes
If You Do It Yourself
Step 1 — Get your federal EIN before anything else.
Apply for your EIN for free directly at irs.gov — a purely federal application with no New York-specific step.
Step 2 — Confirm your default federal tax classification.
A single-member LLC defaults to a disregarded entity (Schedule C); a multi-member LLC defaults to partnership taxation (Form 1065 plus Schedule K-1 for each member). Neither requires a separate election — this is automatic unless you file Form 8832 or Form 2553 to change it.
Step 3 — Register with the New York State Department of Taxation and Finance if required for state income tax withholding or estimated payments.
New York City residents pay a separate city personal income tax on top of state tax, ranging from 3.078% to 3.876% depending on income — meaning an NYC-based LLC owner's combined top marginal state-plus-city rate can exceed 14%.
Step 4 — Register for sales tax if you sell taxable goods or services.
File Sales Tax Certificate of Authority with the New York State Department of Taxation and Finance at tax.ny.gov/bus/st, No fee fee. You must register for and receive your Certificate of Authority before making your first taxable sale in New York — selling without one can trigger penalties even if you later register.
Step 5 — Register for payroll/reemployment tax the moment you hire your first employee.
The moment you hire your first employee, register with the New York Department of Labor. The 2026 new-employer UI rate is 4.1% (including a 0.075% reemployment service fund add-on), applied to a taxable wage base of $13,000 (up from $12,800 in 2025) — note the wage base begins adjusting annually as a percentage of the state average wage starting in 2027.
Step 6 — Set up quarterly estimated tax payments.
If you expect to owe $1,000 or more in combined federal and New York tax for the year, both the IRS and the Tax Department expect quarterly estimated payments covering income tax and federal self-employment tax on your LLC profit.
Step 7 — Calendar your LLC Filing Fee (IT-204-LL) and NYC Unincorporated Business Tax (UBT) due date.
LLC Filing Fee (IT-204-LL) and NYC Unincorporated Business Tax (UBT) (Form IT-204-LL; NYC Form NYC-204 (UBT)) is due IT-204-LL due the 15th day of the 3rd month after year-end (around March 15), no extensions permitted, IT-204-LL: $25 to $4,500 tiered by New York-source gross income (owed even at $0 NY income); NYC UBT: 4% of NYC-allocated business income for LLCs doing business in the city, after exemptions and credits. Missing it puts your LLC in bad standing with the New York State Department of Taxation and Finance.
Step 8 — File your Biennial Statement every New York deadline.
Biennial Statement is due Every 2 years, during the LLC's anniversary month with the New York Department of State, $9 fee.
Step 8 — Decide whether an S-Corp election makes sense once your LLC is consistently profitable.
Given New York's steep graduated rates (up to 10.9%, plus NYC's city tax on top), the federal SE-tax savings from an S-Corp election can be meaningful — but for NYC-based businesses, the bigger driver is often the NYC Unincorporated Business Tax exemption available to single-member LLCs that elect S-Corp status, since that can eliminate a 4% tax entirely rather than just reducing SE tax. Also worth factoring in: New York's Pass-Through Entity Tax (PTET) election, which lets the entity pay New York tax at the entity level (6.85%–10.9% tiered) so owners can deduct it federally around the SALT cap. The 2026 PTET election deadline is March 15, and once the first estimated payment is made, the election becomes irrevocable for the year.
Step 9 — Watch for New York-specific tax traps.
New York is one of only three states requiring LLC publication, and it's an easily missed, geographically variable cost that can run into four figures for a Manhattan-formed LLC. The IT-204-LL fee applies even to zero-activity LLCs with no New York-source income — solo founders who assume 'disregarded entity' means 'nothing to file' are wrong here. And the PTET election deadline of March 15 has historically been enforced strictly, with no late-filing exceptions granted.
Step 10 — Keep business and personal finances completely separate.
Commingling funds is the single biggest reason courts pierce the LLC liability shield, and it also makes tax preparation far more error-prone. Run all business income and expenses through a dedicated business bank account and keep receipts.
If LLC Attorney Does It for You
- Submit your information at llcattorney.com — entity classification, expected revenue, and whether you'll be hiring employees or collecting sales tax.
- LLC Attorney obtains your EIN, registers you with the New York State Department of Taxation and Finance and New York State Department of Taxation and Finance as needed, and sets up your compliance calendar for Biennial Statement and LLC Filing Fee (IT-204-LL) and NYC Unincorporated Business Tax (UBT).
- Receive reminders before every deadline through your client portal, plus access to flat-fee attorney consultations (no retainer) when an S-Corp election or multi-state question needs a licensed professional's judgment call.
When Should You Talk to a Tax Professional About Your New York LLC?
New York's tax and compliance picture genuinely calls for professional help more often than most states: confirming your publication requirement is satisfied correctly for your county, deciding whether a NYC-based single-member LLC should elect S-Corp status to escape the Unincorporated Business Tax, filing the separate CT-6 New York S-election on top of the federal one, and evaluating the PTET election before its strict March 15 deadline.
Is New York a State Where Tax Complexity Matters More?
New York layers more distinct, easily confused obligations onto an LLC than almost any other state: the state IT-204-LL filing fee (Tax Department, tiered by income), the Biennial Statement (Department of State, flat $9, every 2 years), the mandatory publication requirement and Certificate of Publication (county-variable cost, one-time), and — for NYC-based LLCs — the separate 4% Unincorporated Business Tax with its own S-Corp exemption quirk. Getting the sequencing and forms right on all of these at once is where founders most often go wrong.
What You Actually Get With LLC Attorney's New York Compliance Service
New York's publication requirement alone can run from a couple hundred dollars to nearly two thousand depending on your county, and it's easy to get the sequencing wrong on top of the separate IT-204-LL fee and Biennial Statement. LLC Attorney's New York service is built to keep every one of these distinct obligations straight.
- EIN obtained for you at no extra charge.
- State tax and sales tax registration handled as part of formation, starting at $49.
- An ongoing compliance subscription (available through an ongoing compliance subscription — contact LLC Attorney for current pricing) tracks every New York deadline — Biennial Statement, LLC Filing Fee (IT-204-LL) and NYC Unincorporated Business Tax (UBT), and registered agent renewal.
- Access to professionally trained Business Success Advisors at no charge, plus flat-fee attorney consultations (no retainer) for S-Corp election analysis and multi-state nexus questions.
New York doesn't give you room to guess — between the publication requirement, the IT-204-LL fee, and NYC's Unincorporated Business Tax, LLC Attorney makes sure nothing gets missed or filed out of order.
Get Your New York LLC's Taxes Set Up Correctly
Getting your EIN, tax registrations, and compliance calendar right from day one prevents expensive corrections later. LLC Attorney's New York formation service starts at $49, and an ongoing compliance subscription (available through an ongoing compliance subscription — contact LLC Attorney for current pricing) keeps you ahead of every deadline after that. See our full pricing for all service tiers.
Frequently Asked Questions
New York doesn't call it a franchise tax, but the IT-204-LL LLC Filing Fee functions similarly: every LLC required to file a New York return owes at least $25/year, tiered up to $4,500 based on New York-source gross income — and that minimum applies even to a single-member LLC with zero New York income. NYC-based LLCs also owe the separate 4% Unincorporated Business Tax, unless exempted via a single-member S-Corp election.
Only if you sell taxable tangible personal property or enumerated services in New York. Register for free for a Sales Tax Certificate of Authority before your first sale, then collect the 4% state rate plus applicable local add-ons, which combine up to 8.875% in New York City.
Every New York LLC files a Biennial Statement with the Department of State every two years for a $9 fee — separate from the annual IT-204-LL filing fee owed to the Tax Department. Most newly formed LLCs must also complete the one-time publication requirement (newspaper notice plus a $50 Certificate of Publication) within 120 days of formation.
Failing to complete the publication requirement suspends the LLC's authority to conduct business in New York until it's cured — it doesn't dissolve the entity outright, but it's a real operational restriction. Missing the IT-204-LL fee or Biennial Statement can trigger penalties and affect standing with the Tax Department and Department of State respectively.
It depends on your profit level and whether you're NYC-based. New York's steep graduated rates (up to 10.9%, plus NYC city tax) make the federal SE-tax savings from an S-Corp election meaningful, but for single-member LLCs doing business in NYC, the bigger win is often that the election exempts you entirely from the 4% Unincorporated Business Tax. Note that New York requires a separate state S-election on Form CT-6 in addition to the federal one.
A single-member New York LLC defaults to a disregarded entity for federal tax purposes — you report income on Schedule C and pay self-employment tax via Schedule SE. New York still requires filing Form IT-204-LL and paying at least the $25 minimum fee, even with zero New York-source income — a trap many solo owners miss.
If your LLC does business in a state other than the one it's formed in — an office, employees, inventory, or significant sales there — you may have created nexus requiring registration and tax obligations in that state too. This is fact-specific and worth a conversation with a tax professional if you operate in multiple states.
For a typical New York LLC with in-state owners and no employees: graduated state income tax from 4% up to 10.9% (plus NYC city tax of 3.078%–3.876% for city residents), the tiered IT-204-LL fee (at least $25/year), the $9 Biennial Statement every two years, a one-time publication cost, plus federal income tax and 15.3% federal self-employment tax (up to the $184,500 Social Security wage base for 2026). Add 4%–8.875% sales tax if you sell taxable goods or services, and NYC's 4% Unincorporated Business Tax if you do business in the city.
Yes. LLC Attorney's ongoing compliance subscription tracks your New York filing deadlines, handles your Biennial Statement, and connects you with flat-fee attorney consultations (no retainer) when a tax question needs a licensed professional's judgment call.