I am a consultant and have a S corporation in New York City. All of my clients are located in New York City as well. My question is, do I have to file a 4S form with New York City? Does this mean that S corporation share holders are taxed twice in NYC? Once by the city and again as part of thier individual income tax? thanks
Nish
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Shareholders of S Corps located in NYC, who are residents of NYC, are taxed twice on the S Corp income.
Thought I had answered this. Maybe on Misc.Taxes? Anyway ...
NYC taxes S corporations just like C corporations. Yes, your corporation must file either Form 4S or Form 3L. If it does business outside the city as well as in it, it files Form 3L. Look at the 4S form instructions for a list of other reasons why it may be required to file the 3L rather than the 4S. The S corporation is taxed only on its income from within the city. If you are a NYC resident, then you are also subject to NYC income tax on 100% of the flowthrough income from the S corporation. Yes, you are taxed twice by NYC on the NYC-source income of the S corporation. If you are a nonresident of NYC, the city personal income tax does not apply to you. Katie in San Diego
The foregoing is intended for educational purposes only and does not constitute legal or professional advice.
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