New York

New York Franchise Tax Guide for LLCs

Complete 2026 guide to New Yorkfranchise tax — rates, due dates, filing forms, exemptions, and how to minimize your LLC's state tax burden.

Does New York have franchise tax on LLCs?

No direct LLC franchise tax

New York Franchise Tax Structure

How it's calculated

LLCs taxed as partnerships owe personal income tax on distributions (not franchise tax). S-corps owe the NY S-corp franchise tax.

Due date

Not applicable to LLCs taxed as partnerships

Filing form

LLCs file biennial Statement of Information ($9)

Key Things to Know About New York Franchise Tax

Publication requirement ($500-$2,000) is NOT a franchise tax but a separate NY-specific cost
NYC Unincorporated Business Tax (UBT) may apply to LLCs operating in NYC
LLCs electing corp/S-corp status owe corp franchise tax

Possible Exemptions

LLC default classification (partnership) is not subject to NY franchise tax

Verify eligibility with a CPA or the New York Department of Revenue before claiming an exemption.

FAQ

Does my LLC owe franchise tax in New York?

New York does not directly impose a franchise tax on LLCs taxed as partnerships or disregarded entities. LLCs taxed as partnerships owe personal income tax on distributions (not franchise tax). S-corps owe the NY S-corp franchise tax.

When is New York franchise tax due?

Not applicable to LLCs taxed as partnerships. Missed deadlines typically trigger penalties, interest, and loss of good standing. Always mark your calendar or use FormifyAI's compliance reminder service.

How do I file franchise tax in New York?

LLCs file biennial Statement of Information ($9). Most states now offer online filing through their Department of Revenue or Secretary of State portal. Payment can usually be made by ACH, credit card, or check.

What happens if I don't pay New York franchise tax?

Failure to pay triggers: monetary penalties + interest on unpaid amounts, loss of good standing with the state, inability to file lawsuits or enforce contracts, and eventual administrative dissolution of the LLC. Administrative dissolution can retroactively pierce liability protection.

Can I avoid New York franchise tax by forming elsewhere?

Generally no. If your LLC operates in New York (has employees, office, or significant activity there), you'll owe New York state taxes regardless of formation state. Forming in Delaware or Wyoming to "avoid" New York taxes typically costs MORE (both states' fees) while providing no real tax benefit.

Are there exemptions from New York franchise tax?

Possible exemptions: LLC default classification (partnership) is not subject to NY franchise tax. Consult a CPA familiar with New York tax law for your specific situation.

Stay compliant with New York franchise tax

FormifyAI tracks your New York compliance deadlines and sends reminders so you never miss a franchise tax filing. Plus EIN, operating agreement, registered agent, and BOI report all bundled.

Start your LLC New York total LLC cost

FAQ