Filing Requirements for New York City S Corporations

Here is an overview of the filing requirements for New York City S Corporations:

Federal

The S Corporation must file Form 1120S by March 15^th of the year following the year covered in the return (unless the corporation operates on a fiscal year other than calendar year).  Form 1120S also includes Schedule K1 , which lists each shareholders’ share of income and losses.  Schedule K1 is provided to the IRS, and to the shareholder.

** Since the S Corporation is a flow-through entity, the corporation itself pays no Federal income tax.   Thus, the 1120S is an “information-only” return –  all items of profit and loss are flowed through to the shareholders’ individual income tax returns.

 

New York State

For a New York State S Corporation, you must file Form CT-3-S  by March 15^th.  S Corporations must pay a franchise tax which is based on size of payrolls.

 

New York City

New York City does not recognize S corporation status, even though New York State and the IRS do.  Instead, the net income of an S Corporation is taxed as if it were a C Corp at a flat rate of 8.85%.  The minimum tax is $300.

Forms:  File one of the following forms (depending on your situation): NYC-3A, NYC 3-L, NYC-4S, NYC-4SEZ

** What makes this tax particularly obnoxious is that as a New York City resident, you receive no deduction for the tax paid by your S-Corporation.**