Does New York Have a Franchise Tax for LLCs?

No. New York does not impose the Article 9-A corporation franchise tax on LLCs. That tax regime applies to corporations. For LLCs, the recurring New York obligations are different: a $9 Biennial Statement every two years with the Department of State and, when applicable, the Form IT-204-LL annual filing fee based on prior-year New York source gross income.

What Replaces the Franchise Tax for LLCs

For most owners, the practical substitute is not a "franchise tax" at all. It is the Tax Department filing-fee structure for LLCs.

Depending on how your LLC is taxed and its New York source gross income, the annual filing-fee picture may look like this:

Disregarded-entity LLCs with New York source activity generally pay $25
LLCs taxed as partnerships may owe $25 to $4,500 based on prior-year New York source gross income

That is why New York LLC compliance can still be costly even though the state does not call it a franchise tax.

What LLC Owners Still Pay

Even without a franchise tax, New York LLC owners may still face:

Form IT-204-LL annual filing fee when applicable
Biennial Statement fee of $9 every two years
State personal income tax on pass-through income
Sales tax registration and collection obligations where applicable

So the better question is not whether an LLC owes "franchise tax" in name, but what recurring New York filing and tax obligations apply in practice.

Bottom Line

New York LLCs do not pay the corporation franchise tax under Article 9-A. But they are not fee-free. Check both the Biennial Statement requirement and the IT-204-LL filing-fee rules when you estimate your ongoing New York LLC cost.

This is general information, not legal advice.