A single-member LLC that was formed in 2017 made a federal election on form 2553 and NYS election of form CT-6 to be treated as a S-Corp for federal and NYS tax purposes. I am now trying to determine how New York City taxes for this corporation should be filed.
With the election to be treated as an S-Corporation, the entity will not be paying federal income taxes. Instead will receive pass-through treatment and pay taxes on all income earned on the 100% shareholders individual tax return. For New York State purposes, I believe that treatment will be the same. However, I am now trying to understand the New York City filing requirements.
Is the S-Corporation also subject to the NYC General Corporation Tax and if so how does that tax get reported on the 100% shareholders NYS individual tax return. The income from that corporation would already be included in the 100% shareholders personal income tax return as a pass through entity for NY so I am trying to determine the correct way to file this persons NYC and Individual tax return for both the pass-through-entity and as the 100% shareholder of the pass through entity. Is this pass-through entity (for federal and NYS purposes) required to file and pay taxes as a separate NYC entity and then also pay NYC taxes on this income in the 100% shareholders personal return? If so, that does not seem to make sense as there would appear to be a credit back somewhere to avoid the double taxation that S-Corp staus is supposed to prevent
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