If you've registered your limited liability company (LLC) in New York, you'll need to follow the state's rules for LLCs. New York requires LLCs to file certain renewal statements and tax returns as well as pay business taxes to remain in good standing. Let's look at the tax and filing requirements for your New York LLC.
New York LLC Biennial Statement
New York requires every LLC to file a Biennial Statement every two years with the New York Department of State (DOS). You can file your statement online using the DOS's e-Statement Filing System. In the statement, you'll need to provide the name and address of the LLC's registered agent.
As of 2023, the filing fee is $9. You must submit the statement every two years within the calendar month that the original articles of organization were filed. For example, if you filed your articles of organization to form your LLC on October 12, then you'll need to file your statement sometime in the month of October.
LLCs are pass-through tax entities, meaning the income passes through the LLC to the owners (members) who pay taxes on their share of the income. So, the LLC doesn't pay any income tax at the entity level.
New York Annual Filing Fee for LLCs
New York imposes an annual filing fee on both typical single-member LLCs (with the default tax status of disregarded entity) and typical multi-member LLCs (with the default tax status of partnership). The amount of the filing fee varies depending on your LLC's gross income sourced from New York in the immediately preceding tax year. Some LLCs, such as those without any income, gain, loss, or deduction from New York don't need to pay the fee. The fee can range from $25 to $4,500.
The fee is paid to the Department of Taxation and Finance (DTF) using Form IT-204-LL. The form must be filed by the 15th day of the third month following the close of your tax year—for most LLCs, this date would be March 15. (For more details, check the DTF website.)
LLC Can Elect to Be Taxed as a Corporation
LLCs can elect to be taxed as corporations instead of as partnerships or disregarded entities. If an LLC elects to be taxed as a corporation with the IRS, then New York will also treat the LLC as a corporation for tax purposes. When an LLC elects to be taxed as a corporation, the company itself must file a separate tax return.
New York, like almost every other state, directly taxes corporations based (typically) on their income. New York's corporation tax rules are relatively complicated and there are multiple ways that corporations can be taxed. However, in general, if you've elected to have your LLC taxed as a corporation, your LLC will need to pay some kind of tax to the state.
Does your LLC have employees? If it does, your business will be responsible for paying employment taxes to the federal and state governments. In New York, you'll need to withhold personal income tax from employees' wages and pay unemployment insurance (UI) tax.
To withhold wages and pay UI tax, register your business through New York Business Express. Alternatively, you can complete Form NYS-100 and mail it to the Department of Labor to register your LLC to pay these taxes.
Once you've registered, file quarterly combined withholding, wage reporting, and UI return filings. You'll use Form NYS-45, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return, or Form NYS-45-ATT, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return-Attachment.
You can file these quarterly returns through either the:
New York provides a comprehensive Employer's Guide to UI, Wage Reporting, and Withholding Tax that provides details on when and how to pay taxes, current tax rates, and more.
If you plan to sell taxable goods and services to customers in New York, you'll need to collect and pay sales tax. You must first register as a sales tax vendor with the DTF through New York Business Express. Once you register your business, you'll receive a sales tax certificate of authority.
You must file sales tax returns and make periodic payments to the DTF. Your business will either file quarterly, monthly, or annually. You must file a return for every period regardless of whether you make any taxable sales or purchases. The form you file will depend on your filing frequency. You can find these forms on the sales tax forms section of the DTF website.
If you have taxable receipts that are more than $500,000 or prepaid sales tax on motor fuel or diesel motor fuel of more than $5 million, you must register for the DTF's PrompTax program, an electronic filing and payment program. You can request to participate in the program voluntarily.
You can find additional information on the New York sales tax in the sales and use tax section of the DTF website. Here, you can find details on which products and services are subject to sales tax, which form to file, filing due dates, and publications and guidance.
You might also be responsible for reporting and paying sales and use tax to your city or county. Make sure you check with your local taxing authorities for your reporting responsibilities.
If you plan to do business in states other than New York, then you'll probably need to register to do business in those states. Most states require you to qualify as a foreign (out-of-state) business if you'll have a location (like an office or warehouse) or employees in their state or if you plan to solicit sales from their residents. You should check each state's rules to figure out whether you need to qualify, and if you do need to qualify, what steps you need to take.
If you need help, check out our state guide to qualifying to do business outside your state.
If you're looking for more information on how to operate your LLC, see our section on running an LLC. If you have legal questions, consider reaching out to a business lawyer in New York. They can help you determine your filing requirements and tax responsibilities. They can also help you manage your employees, draft legal documents, and maintain business licenses and permits.
If you need more information about other states' requirements, read our article on LLC tax and filing requirements.