New York
Taxes and business formation • USA 2025–2026
LLC in New York
Corporation in New York
State income tax — 2026
Below are the official New York State income tax rates for 2026 according to the NY Department of Taxation and Finance (Form IT-201-I). The rates are progressive: each portion of income is taxed at the rate of its bracket. Residents of NYC and Yonkers additionally pay a city tax (see the block below).
| Taxable income | Rate |
|---|---|
| $0 – $8,500 | 4% |
| $8,501 – $11,700 | 4.5% |
| $11,701 – $13,900 | 5.25% |
| $13,901 – $80,650 | 5.5% |
| $80,651 – $215,400 | 6% |
| $215,401 – $1,077,550 | 6.85% |
| $1,077,551 – $5,000,000 | 9.65% |
| $5,000,001 – $25,000,000 | 10.3% |
| $25,000,001 – and above | 10.9% |
| Taxable income | Rate |
|---|---|
| $0 – $17,150 | 4% |
| $17,151 – $23,600 | 4.5% |
| $23,601 – $27,900 | 5.25% |
| $27,901 – $161,550 | 5.5% |
| $161,551 – $323,200 | 6% |
| $323,201 – $2,155,350 | 6.85% |
| $2,155,351 – $5,000,000 | 9.65% |
| $5,000,001 – $25,000,000 | 10.3% |
| $25,000,001 – and above | 10.9% |
Tax system of New York
Income Tax
New York has a progressive personal income tax with rates ranging from 4% to 10.9%. In addition, residents of New York City pay a city income tax ranging from 3.078% to 3.876%. There is no standard deduction, and almost all income is taxable. Individuals effectively pay double taxation — at both the state and city level.
Sales Tax
New York's base sales tax rate is 4%, but with local taxes it can reach 8.875% in New York City. Most goods, services, hotels, and short-term rentals are taxable. If you buy goods outside of NY but use them in New York, you are required to pay Use Tax if the seller did not charge sales tax.
Property Tax
The average property tax rate is 1.54% of a home's value.
Estate / Inheritance Tax
Applies when the value of the estate exceeds $6,940,000. Rates range from 3.06% to 16%.
Business Taxes
C-corporations registered or doing business in New York pay a corporate tax. The rate depends on the amount of income: under $5 million — 6.5%; above $5 million — 7.25% (in effect temporarily until 2027). S-corporations pay a fixed fee ranging from $25 to $4,500 depending on income. For small companies, the rate can be reduced to 0%. Financial corporations (banks, holding companies, credit unions) pay an increased rate of 9%. All companies doing business in NY are required to file an Annual Franchise Tax return and a Biennial Statement (every two years).
Excise Taxes
New York levies excise taxes on items such as alcohol, tobacco, and fuel.
Forming an LLC in New York — step-by-step guide
The full path from choosing a name to your first Annual Report. You can do it yourself or have us handle it — saving 2-3 weeks and making sure you don't miss state-specific requirements.
- 1
Choosing and Reserving a Name
The LLC name must be unique within NY state and contain “LLC,” “L.L.C.,” or “Limited Liability Company.” You can check availability on the Department of State website (corporationsearch.dos.ny.gov). For $20, the name can be reserved for 60 days — I recommend this if the registration process is dragging on.
- 2
Appointing a Registered Agent
Unlike most states, in NY the role of Registered Agent is performed by the Secretary of State by default. You can additionally appoint your own agent (commercial $100-300/year). For non-residents, this greatly simplifies registration — there's no need to find a local agent.
- 3
Filing the Articles of Organization (Form DOS-1336)
The main document. Filed online through Business Express NY or by mail. The cost is $200. Processing usually takes 7-14 business days (online is faster). After approval, you receive a Filing Receipt — keep it, you'll need it for the next steps.
- 4
Publication Requirement (NY-specific)
An obligation unique to NY: within 120 days after registration, you must publish a notice in two newspapers (one daily, one weekly) designated by the county clerk. The cost in NYC is $1,500-2,500, in upstate — from $300. Afterward — file a Certificate of Publication ($50) with the Department of State. Without this, the LLC cannot legally conduct business in the state.
- 5
Obtaining an EIN from the IRS
The Federal Employer Identification Number — needed to open a bank account, hire employees, and for federal taxes. Filing through IRS.gov is free and takes ~10 minutes. For non-residents without an SSN/ITIN — via Form SS-4 by fax/mail, it takes 4-6 weeks. I help obtain an EIN in 1-2 weeks through the CAA channel.
- 6
Operating Agreement
Required by NY Limited Liability Company Law even for a single-member LLC (though it is not filed with the state). It governs the distribution of stakes, the rights and obligations of members, the decision-making process, and the buyout of stakes. Without it, the state's default rules apply, which rarely match the actual structure of the business. We can provide a template in Russian with a translation of the key terms.
- 7
Opening a Bank Account
Most traditional banks (Chase, Bank of America, Citi) require the in-person presence of the primary owner. Alternatives for non-residents and remote owners: Mercury, Wise Business, Relay, and Brex — opened entirely online with an EIN, a passport, and LLC documents. Approval time is usually 1-3 business days.
- 8
Sales Tax Certificate (if selling)
If you plan to sell goods or taxable services, you need to register with the NY Department of Taxation and Finance and obtain a Certificate of Authority (Form DTF-17). Free, done online through My NY Tax Account. Processing takes 5-10 days. Without it, you do not have the right to collect sales tax from buyers.
- 9
Bookkeeping and Payment Systems
Stripe, Square, and PayPal accept a NY LLC after EIN verification. For bookkeeping — QuickBooks ($30-200/month depending on the plan) or Wave (free for small business). For managing contractors and payroll — Gusto or Justworks. If you plan to hire employees — registration with the NY State Workers Compensation Board is mandatory.
- 10
First Biennial Statement and Annual Filing Fee
2 years after registration (then every 2 years), a Biennial Statement is filed for $9. Also, annually by March 15, Form IT-204-LL is filed with an Annual Filing Fee of $25-$4,500 depending on the LLC's revenue. Failure to comply = the LLC moves into “delinquent” status, which blocks the ability to open a new bank account or file a lawsuit.
Frequently asked questions
Can I, as a non-US resident, open an LLC in New York?+
Yes. Non-residents can own and open an LLC in New York without a US visa, SSN, or US address. You'll need: a passport, an EIN from the IRS (obtained without an SSN via Form SS-4), a US address (you can use a registered agent or a mail forwarding service like iPostal1), and ideally a US bank account (Mercury/Wise/Relay open remotely). I help with full turnkey registration — from filing the Articles to the first Biennial Statement.
How much does it cost to open and maintain an LLC in New York in the first year?+
First-year expenses (approximately): • Articles of Organization: $200 • Publication Requirement: $1,500-2,500 in NYC; $300-700 in upstate • Certificate of Publication: $50 • Registered Agent (if you hire one): $100-300/year • Operating Agreement (through a professional): $200-500 Total: $2,000-3,500 in the first year (mainly due to the publication requirement). From the second year on — only $9 every 2 years + an Annual Filing Fee of $25-4,500 depending on revenue.
Does my LLC pay corporate tax in New York?+
It depends on the tax status. By default, a single-member LLC = a disregarded entity, multi-member = a partnership: there are no taxes at the LLC level, and income is reported by the owners on personal returns (4-10.9% NY + federal). If you choose corporate status (S-Corp or C-Corp through Form 8832) — there will be separate tax obligations. All NY LLCs pay an Annual Filing Fee of $25-$4,500 depending on revenue + a biennial statement. LLCs doing business in NYC additionally pay a 4% UBT on pass-through profit.
When do I need to file the first Annual Filing Fee and Biennial Statement?+
The Annual Filing Fee (Form IT-204-LL) is filed annually by March 15 (or together with the federal partnership return 1065). The Biennial Statement — 2 years after registration, in the same calendar month. For example, an LLC registered on March 10, 2025 — the first biennial must be filed by March 31, 2027. The cost of the biennial is $9. The annual filing fee is calculated by revenue: $25 if <$100k, $50 at $100k-250k, and so on up to $4,500 for >$25 million.
Which is better — an LLC or an S-Corp for a business in New York?+
For a simple single-owner business with income up to $50k/year — an LLC is simpler and cheaper. If income is above $80-100k/year and you pay a lot of self-employment tax (15.3%), an S-Corp election through Form 2553 can save $5-15k a year via the “salary + dividends” structure. But an S-Corp requires payroll, more complex bookkeeping, and is NOT available to non-residents — S-Corp shareholders are limited to US persons (citizens, residents, certain types of trusts). Non-residents are left with an LLC by default or a C-Corp.
Do I need to obtain an ITIN if I own a New York LLC?+
An ITIN is needed only if you personally have US-source income that requires filing a personal tax return. Owning an LLC itself does not create such an obligation (if the LLC generates no income and you are a non-resident). However, once the LLC starts earning — yes, for filing the federal IRS Form 1040-NR + the NY Form IT-203 as the owner, you'll obtain an ITIN through Form W-7 together with the first return. As a CAA (Certified Acceptance Agent, IRS-authorized), I can submit the ITIN request on your behalf without needing to send the original passport to the IRS.
What are the deadlines for federal vs New York state tax?+
They usually coincide: • Personal income tax: April 15 (federal 1040 / 1040-NR) and April 15 (NY IT-201 / IT-203) • LLC partnership return (1065): March 15 (federal IRS) and March 15 (NY IT-204) • NY Annual LLC Filing Fee (IT-204-LL): March 15 together with the partnership return • C-Corp (1120): April 15 (federal) and April 15 (NY CT-3) • S-Corp (1120-S): March 15 (federal) and March 15 (NY CT-3-S) • NYC Unincorporated Business Tax (UBT): April 15 (if the LLC does business in NYC) If needed, you can file an automatic 6-month extension (Form 7004 federal, IT-370 NY).
Neighboring states
Compare conditions with neighboring states — sometimes registering nearby is more advantageous, especially if you operate multi-state.
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