Cost of Starting an S Corp in New York
The cost to form an S-Corp in New York will vary depending on the services you use, such as an attorney or a filing service. Generally, the cost for filing the Certificate of Incorporation will range from $50 to $200, and the cost for obtaining the Certificate of Authority from the New York Department of Taxation and Finance will range from $25 to $50.
Starting an S Corp in New York
There are two main ways to start an S corp in New York:
- By forming a corporation and electing S corp status from the IRS Form 2553. You must also file Form CT-6 from the New York Department of Taxation and Finance to be taxed as an S corporation.
- By forming an LLC and electing S corp tax status from the IRS Form 2553 when you request your EIN. You must file Form CT-6 to be taxed as an S corporation. If you want the S corp status to take effect the next year, you may file at any time in the previous year.
Benefits of Starting an S Corp in New York
New York provides several advantages for S Corps, including a lower tax rate and some tax exemptions. Shareholders can write off any business losses and report it on their individual tax returns. The formal structure helps ensure efficient operations.
You can convert an LLC or C-Corp to S-Corp in New York easily with assistance. Some benefits of forming an S-Corp in New York are avoiding self-employment tax plus state and federal taxes. The tax return should be filed by the deadline—March 15 for calendar year S-Corps.
Additional Information
It’s important to research the environment for your business before deciding where to incorporate. If doing business in one state, incorporate there.