Attention NYC Business Owners: Are you looking for tax-saving tips? In this video, I focus on owners of New York City companies with LLC status. The catch here is that NYC doesn’t recognize S-Corporations, unlike the state of New York. If you choose to be taxed as an S-Corp while being in NYC, you’ll be treated as a regular corporation and have to pay taxes on your profits at the city level. This double taxation can impact your bottom line significantly. I recently encountered a case where a NYC-based LLC contemplated switching to an S-Corp, and I crunched the numbers to determine the breakeven point. Factoring in administrative costs, payroll expenses, and tax return fees, I found that the magic income threshold was around $73,000. If your net revenues minus business expenses exceed this, you’ll create savings by making the switch. Keep this guide in mind to optimize your financial planning. Whether you’re in NYC or outside the five boroughs, making informed decisions about your business taxes is crucial for financial success.
When Does It Make Sense for a NYC LLC to Make the S Corp Election?
