What is the difference between general business corporations and S corporations for New York State purpose?
Since 2004, New York State (NYS) began to look at S corporation almost in the same manner as Internal Revenue Service (IRS) considers this type of entity. The state eliminates its differential – between article 22 and 9A – tax for S Corporation. Now, the entity pays almost no tax to NYS. The entity has to be both a federal and state S corporation. Otherwise, like a general business corporation, both shareholders and corporation pay tax to NYS.
