What Taxes Does an LLC Pay in New York?
Title: What Taxes Does an LLC Pay in New York?
Description: New York LLCs pay pass-through income tax, gross receipts tax, and sales tax. Learn filing requirements and rates.
FAQ
Q: What taxes does an LLC pay in New York?
A: New York LLCs are pass-through entities. Members pay personal income tax on their share of profits at graduated rates (3.9%–10.9%) under N.Y. Tax Law § 601. The LLC itself pays a gross receipts tax (Form IT-204-LL) ranging from $25 to $4,500 annually based on prior-year New York source income. If the LLC sells taxable goods or services, it must collect and remit 4% state sales tax plus applicable local taxes under Tax Law § 1101. Self-employment tax applies to member distributions.
Pass-Through Income Tax
New York treats single-member LLCs as disregarded entities (Schedule C) and multi-member LLCs as partnerships (Form 1065) for federal purposes. Income passes through to members' personal tax returns. Members pay New York personal income tax on their allocable share at graduated rates between 3.9% and 10.9% under N.Y. Tax Law § 601. The LLC itself does not pay corporate-level income tax.
You may elect S-corp or C-corp taxation if it reduces overall tax burden, but this requires separate federal and state filings.
Gross Receipts Tax (Form IT-204-LL)
All New York LLCs file Form IT-204-LL annually. The filing fee depends on prior-year New York source gross income:
- Disregarded entities with New York activity: $25
- Partnership-taxed LLCs: $25–$4,500 (tiered by income bracket)
This is a separate, mandatory filing from income tax returns. The Department records past-due filers as noncompliant, which can affect business transactions.
Sales Tax
If your LLC sells taxable goods or services in New York, register for sales tax under Tax Law § 1101 at https://www.tax.ny.gov/bus/st/register.htm. Collect 4% state sales tax plus local taxes (which vary by county and city). Remit collected sales tax to the New York State Department of Taxation and Finance.
Estimated Payments
Estimated income tax payments are due April 15, June 15, September 15, and January 15 if you expect to owe more than a threshold amount.
Next Steps
- Register for sales tax if applicable
- File Form IT-204-LL annually
- File your Biennial Statement every two years ($9 fee)
- Consult a tax professional about S-corp or C-corp election benefits
- Contact the New York State Department of Taxation and Finance: https://www.tax.ny.gov/
This is general information, not legal advice.