What are the tax obligations for registered businesses in New York?

In New York, registered businesses must comply with various tax obligations that depend on the organization's structure, revenue, and type of business activity. Corporations, for instance, are generally subject to the Corporate Franchise Tax, which applies to most businesses operating in the state. The tax rate can differ based on the income bracket and whether the corporation is a general business corporation or a qualified New York S corporation. Limited Liability Companies, or LLCs, are typically subject to the New York State LLC filing fee, which varies depending on the income level of the business. Additionally, LLCs classified as partnerships or disregarded entities do not pay state income tax at the entity level but may be liable for federal taxes based on the owners' personal income. Sales tax is another important consideration. Businesses selling tangible personal property or certain services must register to collect and remit sales tax. The current state-wide sales tax rate is four percent, but local counties and cities may impose additional sales tax, which can increase the overall rate. Employment taxes are also a key responsibility for businesses with employees. This includes withholding personal income tax from employee wages, as well as paying state unemployment insurance taxes. It is advisable for business owners to visit the New York Secretary of State’s official website for comprehensive guidance on their specific tax obligations and to ensure they meet all regulatory requirements.