East Bay Business Daily

How much taxes does an incorporation pay if it makes less than $1000 the first year?

How much taxes will a incorporation pay (one person running it) if it makes less than 1k the first year (in NYC)?

Public Comments

1. very likely the only income tax the corp will have for the $1000 year is the minimum tax assessed by your state that is required of every corp regardless of how much or little they make
2. You say that there is only one person running it. Are you a regular subchapter C corporation? An S-corp? Or an LLC? This information is based on being either an S-Corp or C-Corp. New York has a strange franchise tax. If the corporation has less than $1,000 in average assets (I think that's the current figure.) The minimum franchise tax is much higher. There are a few accounting tricks you can use to increase the assets, but you need to speak to a tax professional before the end of the corporation's fiscal year to make certain you handle it properly. The lowest federal income tax bracket for a C-Corp is 15%. If you are an S-Corp or an LLC then the income goes to your income tax return. However, New York City doesn't recognize S-Corps so you have to pay NYC tax, but you get a credit on your personal tax return. I hope this helps. Gary