NY · Tax year 2026 · Last reviewed 2026-08-24
LLC vs S Corp in New York: Tax Savings Calculator.
Compare federal payroll taxes, self-employment taxes, New York ’s $9 annual fee and estimated S Corp savings in seconds.
At $100,000 net profit with a $50,000 W-2 salary, the federal payroll tax delta is $10,305. Adjusted for New York's recurring cost, the estimated net modeled benefit (yr 1) is$9,096.
LLC Filing Fee
$200
one-time, New York Secretary of State
Annual Franchise / Report (LLC)
$9
recurring, every year
S-Corp Recurring Cost
$34
$25 above the LLC rate
Estimated Net Modeled Benefit (yr 1)
$9,096
federal delta minus the annual fee
01 · New York model
Tune the inputs. Numbers update live.
What does this mean? Your expected business profit for the year after business expenses but before the owner's salary.
The IRS requires "reasonable compensation" for S-Corp shareholder-employees. The salary is capped at your current net profit.
This is an illustrative assumption, not a tax or an IRS-required amount. Real overhead depends on your payroll provider, your CPA, and your state.
Per IRS Form 8959, these are added to your business income to determine whether the 0.9% Additional Medicare Tax applies.
Sets the Form 8959 threshold: $200K (single / HOH), $250K (MFJ), $125K (MFS).
New York LLC recurring fee (deducted from savings)
$9
NY LLC: $9 biennial. S-Corp adds Article 9-A FDM ($25/yr at $100K).
Defaults: $100K profit · $50K salary
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LLC
Federal payroll tax
$14,130
S-CORP
Federal payroll tax
$3,825
Federal Payroll / SE Tax Difference
$10,305
LLC SE tax minus the S-Corp's employer-side FICA on the owner salary. This is the federal payroll-tax piece only.
Estimated Net Modeled Benefit (yr 1)
$9,096
- Federal payroll-tax delta
- $10,305
- − New York annual fee
- $10,296
- − Modeled S-Corp admin overhead
- $1,200
- = Estimated net modeled benefit
- $9,096
- − Approx. §199A W-2 drag
- $0
- = Net after QBI drag
- $9,096
Federal delta = the LLC's self-employment tax minus the S-Corp's employer-side payroll tax. The S-Corp employer-side figure ishalf of the standard 12.4% + 2.9% FICA on the salary; the 0.9% Additional Medicare Tax is entirely employee-side (no employer match) and is not included in the S-Corp employer-side comparison. The $200 filing fee is not included — it's a one-time setup cost. Income tax, QBI, health insurance, and retirement contributions are not modeled.
Estimate. Methodology & scope
ESTIMATE. The figures above estimate the federal payroll / self-employment tax difference between a Single-Member LLC (Schedule C / Schedule SE) and an S-Corp election, plus New York's $9 LLC biennial statement and the Article 9-A fixed-dollar minimum tax tiered on NY receipts for an S-Corp ($25–$1,225) and the one-time $200 New York LLC filing fee (setup cost, not deducted from the year-1 net benefit). They do not include federal or New York individual income tax (the state-income-tax flag is informational; the dollar amount is not modeled), the §199A QBI deduction (made permanent under the One Big Beautiful Bill Act, H.R. 1 / Public Law 119-21, signed July 4, 2025, with a 2026 phase-in range of $200K–$275K single / $400K–$550K MFJ), self-employed health insurance, retirement contributions, the half-of-SE-tax Schedule 1 adjustment, filing-status-specific deductions or credits, multi-state apportionment, reasonable-compensation enforcement, or other items that depend on your complete tax situation. The S-Corp administration overhead is a configurable illustrative assumption (defaulted to $1,200/yr), not a tax and not an IRS-required amount. Verify with a licensed CPA, EA, or tax attorney before acting.
02 · Why New York specifically
The state-level numbers that move the answer.
An S-Corp election only pencils out when the federal payroll tax saved outpaces the recurring cost of running a corporate entity. New Yorkcharges $9per year to keep your entity in good standing and assesses ordinary state income tax on top of the federal figure.
At the calculator's default $100K / $50K inputs, the federal delta ($10,305) is what an LLC owner gives up in self-employment tax on net profit. After the New York annual fee, the estimated net modeled benefit is$9,096.
State-specific note: NY requires a $9 biennial statement (~$4.50/yr). NY LLCs formed in NY must also satisfy a county-level publication requirement within 120 days of formation (NY LLC Law § 206), which can cost $200–$2,000 depending on the county, plus a $50 Affidavit of Publication filing. This publication cost is a ONE-TIME first-year cost and is NOT included in the modeled annual fee or first-year filing cost.
Localized formula — how this number was calculated
// New York — same engine as the homepage
seBase = netProfit × 0.9235
ssPortion = min(seBase, 184_500) × 0.124
medicare = seBase × 0.029
addlMed = max(0, seBase + existingWages − 200_000) × 0.009
llcTax = ssPortion + medicare + addlMed
// S-Corp — employer-side payroll tax only
ssPortion = min(salary, 184_500) × 0.124
medicare = salary × 0.029
standard = ssPortion + medicare
addlMed = max(0, salary + existingWages − 200_000) × 0.009
// employee-side only — no employer match
scorpTax = standard / 2 // 50% of standard FICA — AddlMed excluded
// Net benefit
payrollDelta = llcTax − scorpTax
netOfFee = max(0, payrollDelta − 9)
savings = max(0, netOfFee − 1200) // $1,200 admin overhead- LLC filing: one-time $200 to form the entity in New York.
- Annual franchise / report: $9/yr to maintain good standing.
- State income tax: applies on top of federal ordinary rates; not modeled.
03 · FAQ
LLC vs S Corp in New York — frequently asked questions
Common questions about choosing between an LLC and S Corp in New York, sourced from Google, Reddit, and Quora. The right answer depends on your income, reasonable compensation, and other factors — talk to a CPA for personal advice.
How much does it cost to form an LLC in New York?
New York charges a $200 filing fee to form an LLC. The biennial statement fee is just $9 every two years (~$4.50/yr). However, NY LLCs formed in NY must also publish a notice in two newspapers within 120 days of formation, which can cost $200–$2,000 depending on the county.
Does New York have a state income tax?
Yes. New York imposes a state individual income tax with rates ranging from 4% to 10.9%. New York City imposes additional city income taxes. S-Corps also face the Article 9-A fixed-dollar minimum tax.
Is an S Corp election worth it in New York?
New York is complex. The $9 biennial statement is minimal, but S-Corps also face the Article 9-A fixed-dollar minimum tax ($25–$4,500 depending on receipts) plus NY individual income tax. At $100K net profit, the Article 9-A FDM is $175–$300. The federal savings of $5,500–$6,000 minus these costs still leaves a benefit once profit exceeds $70K–$90K.
What is New York's LLC publication requirement?
New York LLCs formed in NY must publish a notice of formation in two newspapers (one daily, one weekly) within 120 days, plus file a $50 Affidavit of Publication. Total cost ranges from $200 in cheap counties to $2,000+ in NYC. This is a one-time first-year cost.
What is New York's Article 9-A fixed-dollar minimum tax?
NY S-Corps pay the Article 9-A fixed-dollar minimum tax (Tax Law § 210.1), tiered on NY receipts: $25 (<$100K), $50 ($100K–$250K), $175 ($250K–$500K), $300 ($500K–$1M), $1,000 ($1M–$5M), $3,000 ($5M–$25M), $4,500 (>$25M). This is in addition to the $9 biennial statement.
04 · Compare against
Run the model against another state.
05 · Methodology