New York LLC Tax Guide (2026)
New York LLC owners face multiple tax obligations — from the state franchise tax to NYC’s Unincorporated Business Tax.
Form Your New York LLC — $149 →New York LLC Tax Summary
| Tax | Rate / Amount |
|---|---|
| NY State Franchise Tax (LLCs) | $25–$4,500/yr based on gross income |
| NYC Unincorporated Business Tax | 4% on net income over $100K |
| NY Individual Income Tax | 4%–10.9% (graduated) |
| Self-Employment Tax (federal) | 15.3% on net earnings |
NY State Franchise Tax for LLCs
New York LLCs pay an annual filing fee ranging from $25 to $4,500 depending on gross income. Under $100K gross income: $25/year. Over $25M: $4,500/year. This isn’t an income tax — it’s a flat fee based on your revenue tier.
NYC Unincorporated Business Tax
If your LLC operates in New York City, you may owe the NYC Unincorporated Business Tax (UBT) at 4% on net income over $100,000. LLCs under that threshold are generally exempt, and certain professionals may qualify for deductions.
Federal Pass-Through Taxation
By default, single-member LLCs are taxed as sole proprietorships and multi-member LLCs as partnerships. Income passes through to your personal tax return — avoiding corporate double taxation. S-Corp election is available and can reduce self-employment tax obligations once income is high enough.
New York Will Tax You Six Ways to Sunday. Here’s How to Stay Ahead of It.
New York has one of the most complex business tax environments in the United States. You’ve got state franchise tax, NYC’s Unincorporated Business Tax, New York State personal income tax (up to 10.9% at the top bracket), and the federal self-employment tax stacked on top of all of it. If you’re operating in New York City, you’re potentially paying taxes to four different authorities on the same dollar of income.
The good news? An LLC gives you the flexibility to manage this more intelligently than almost any other business structure. The pass-through default keeps your tax profile simple when you’re early-stage. Once your net income grows past a certain threshold — typically around $40,000–$60,000 in active profits — an S-Corp election can dramatically reduce your self-employment tax burden, because you only pay SE tax on your “reasonable salary,” not your full distributions.
Here’s the sequence that successful New York LLC owners follow: Form the LLC first. Get it structured right. Get the operating agreement in place. Open the business bank account. Get the EIN. Then, once you have a year of revenue to look at, sit down with a CPA and evaluate whether S-Corp election makes sense for your income level. Corp Nation can refer you to tax professionals who specialize in exactly this analysis for New York-based LLCs.
What we can tell you is this: trying to figure all of this out alone, without the right structure in place, is how people end up with surprise tax bills and personal liability they thought they’d protected against. The LLC is the foundation. Everything else — tax strategy, banking, growth — builds on top of it.
Get the foundation right with Corp Nation. $149 gets you the formation, the registered agent, and the operating agreement. From there, you’re building on solid ground.