Tax Law Changes for New York LLCs and LLPs

  • Published: March 19, 2009
  • By Mark Morfopoulos

For tax years beginning after 2007, LLCs and LLPs that are treated as partnerships for federal income tax purposes and have New York source gross income will have their New York filing fees calculated according to their source income for the tax year immediately proceeding the tax year for which the fee is due. See amended section 658(c)(3) of the Tax Law. Prior to the enactment of this amendment, the fee was determined by the number of members or partners of the LLP or LLC. The filing fee is due within 30 days after the last day of your last tax year. According to the instructions prepared by the Department of Taxation and Finance, Form IT-204-LL must be filed by every domestic or foreign LLC (even disregarded LLCs) or LLP that is required to file a New York State partnership return and that has any income, gain, loss, or deduction from New York sources. Those entities filing a return solely because it has a New York resident partner, is formed under the laws of New York State, or is dormant, are not subject to the filing fee. The filing fees range from $25 to $4,500. Multiple-tier LLCs/LLPs will be taxed at each separate tier, with no credit for the fee paid by the lower tier entity.