New York has a franchise tax that applies to:
The General Business Corporation Franchise Tax Return is a relatively complicated tax filing that is typically filed by a tax accountant alongside the New York Corporate Income Tax return. Most general business corporations are mandated to e-file the estimated tax.
New York has a Q&A on their website about the Franchise Tax.
April 15th - the following calendar year, if on a Calendar Year
Within 3.5 months after end of reporting period if on a Fiscal Year
Your first franchise taxes are due in the calendar year following when you started doing business in NY if on a Calendar Year, and 3.5 months after the end of the Fiscal Year you started doing business in NY if on a Fiscal Year.
The tax is calculated as the highest of three methods (NY refers to them as “bases”): Business income, Business capital, and Fixed dollar minimum tax. Each base has its own tax rate or threshold associated with it. The tax filing document has rows to help your accountant calculate tax due.
The business income base equals federal taxable income apportioned to New York State with some adjustments.
The business capital base is the total business capital apportioned to New York State after deductions. Business Capital is limited to $5,000,000 for general business taxpayers.
The fixed dollar minimum tax is determined by the corporation's New York State receipts.
Corporations that do business in the Metropolitan Commuter Transportation District and owe estimated franchise tax must also pay an estimated MTA surcharge and file Form CT-3-M.
Corporations that expect to owe more than $1,000 in franchise tax after credits must file estimated tax forms (Form CT-400, Estimated Tax for Corporations) and make quarterly payments of estimated tax due. Most Corporations will e-File, either on their own or via their tax provider.
Discern customers can digitally file their secretary of state annual reports and Delaware franchise tax directly from the product, in minutes. Discern also notifies its customers when other franchise taxes are due, and provides guidance, links to the filings themselves, and a place to track the filings.
Learn more about what Discern can do here.
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