You may wish to consult a tax professional to assist you in complying with requirements under the Tax Law.
What types of tax professionals can help me?
Choosing an accountant versus a bookkeeper:
- Bookkeepers can help keep track of transactions, payroll, and workers' compensation.
- Accountants help with tracking revenue, financial statements, and tax filing.
If you sell taxable tangible personal property or taxable services (even if you make sales from your home), you must register with the Tax Department before beginning business.
- Visit Business Express to apply for a certificate of authority at least 20 days before you begin operating your business.
- Visit this site to learn how to register for NYS sales tax.
Once you're registered for sales tax in New York State, you must file sales and use tax returns with the department quarterly, part-quarterly (monthly), or annually. You must file a sales tax return by its due date, even if you have no tax due for the filing period. Sales Tax Web File is the fastest way to do this.
You can help minimize the potential for sales tax-related problems by doing the following:
- Seek advice from a tax professional when necessary.
- File your returns on time even if you have no tax due.
- Pay the correct amount of tax due on time.
- Maintain a separate bank account for your sales tax receipts.
- Maintain proper internal controls.
Use tax is a tax imposed on the use of taxable items and services in New York when the sales tax hasn't been paid.
Common situations in which a business operating in New York State may owe use tax include purchases of taxable property or services:
- made outside of New York State;
- made over the Internet, from catalogs, or by phone from businesses that are located outside of New York State; and
- that are used in a different local taxing jurisdiction in the state from where they were purchased or where they were delivered.
A business also owes use tax if it:
- withdraws taxable property from inventory for use by the business; and
- uses taxable property that is manufactured, processed, or assembled by the business.
Requirements for LLCs and LLPs
Guidelines for New York personal income tax and corporate franchise tax for LLCs and LLPs conform to the federal income tax classification of LLCs and LLPs.
- An LLC that is treated as a sole proprietorship must report its business income and expenses on the individual's New York State personal income tax returns.
- An LLC or LLP that is treated as a partnership may be required to file a Form IT-204, Partnership Return.
- An LLC or LLP that is treated as a corporation for federal income tax purposes may be required to file a New York State corporation franchise tax return.
- An LLC or LLP may be required to pay a filing fee and/or estimated income tax on behalf of certain partners or members.
Requirements for Partnerships
If your business is incorporated in, does business in, or participates in certain other activities in New York State, you may have to file an annual New York State corporation tax return to pay a franchise tax under the New York State Tax Law.
The way you compute the tax, and the type of return you file, will depend on the type of business your corporation conducts.
Property Tax is a local tax used to fund local services available to property within the taxing jurisdictions. It has multiple components, including a value tax. Various municipalities have different rates with annual tax bills issued at different times of the year. City property owners receive a combined City and School Tax Bill, issued on July 1st, with the first installment due July 31st.
To find City tax details on a specific property, visit this site.
To make City/School tax payments online, visit this site.
For information on other taxes that may apply to your business, visit this page of the NYS Department of Taxation and Finance.
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