Here is an overview of the filing requirements for New York City S Corporations:
The S Corporation must file Form 1120S by March 15th 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 15th. 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.
** 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.**