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Category: Finance
Satisfied Customers: 4479
Experience:  Tax professional and business consultant for 35 years.
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If I have a NYS S corporation but have no office in NYC do I

Customer Question

If I have a NYS S corporation but have no office in NYC do I still have to file and NYC-4s. I do have customers in the city.
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I am trying to find out if my NYS Sub S corporation is lliable for NYC taxes even though we do not maintain an office in NYC
JA: Is there anything else important you think the Accountant should know?
Customer: Only that I do service customers in NYC but have my business located in Nassau county. I am the sole shareholder and I live in Nassau county also
Submitted: 10 months ago.
Category: Finance
Customer: replied 10 months ago.
I stated I live in Nassau by mistake. I am a NYC resident
Expert:  PDtax replied 10 months ago.

Hi from just answer. I'mCustomer I'll assist.

The answer is probably. It depends on the taxation concept of nexus.

If you only occasionally do business in the city, without a fixed location or visits by sales people, you might not have to file in NYC.

If your s corp uses your home address, you might have to file in NYC, but report most of your sales in other areas.

Your specific business model will dictate. Please add some details and I can be more precise.

Customer: replied 10 months ago.
The business maintains an office in Nassau county. The legal address is Nassau county. The corporate returns are filed with a Nassau address. The company bank account is in Nassau county. He does sheetmetal contracting work both in and out of NYC. What do you mean by specific business model?
Expert:  PDtax replied 10 months ago.

NYC would like some income tax, or general corporation tax, on NYC-4S if you earn some income in NYC. There are several bases for tax, and you will have to pay the largest of the income tax, tax on capital, amt or the fixed dollar minimum.

There is a phase in of sales apportionment that started for tax years starting after 1/1/15. That essentially means that if you did 5% of your business in NYC, the income tax would consider only 5% of the total S corp income for that tax. The fixed minimum and other tax bases remain.

I asked about your business model because the mere act of going into NYC to work creates nexus, which is the legal concept that creates taxability. I asked about your business model because items you have delivered into NYC might not create nexus, but actually going into the city to work/sell/install does create a tax burden.

The good thing is with the sales apportionment, and the fixed dollar minimum based on NYC sales, the tax due will likely be small.

Thanks for asking at Just Answer. Positive feedback is appreciated. I'mCustomer