Corporation or LLC

Corporation or LLC (Limited Liability Corporation)
Starting a NY corporation or an NY LLC is a big decision and not one that should be taken lightly.  It is important to weigh both the pros and cons of both legal entities.  The decision to choose your business identity should be discussed with either your CPA (Certified Public Accountant) or your attorney.  Please utilize one of these professionals to start your new business venture.  The tax consequences of either choice can be substantially different.  For example, an LLC pays self employment tax on the it's net income at the end of the fiscal year; while a S-Corporation does not.  This is just one of the many differences between the two.  Another example is that S-Corporation shareholders can draw a salary while LLC members cannot.  S-corporations file form 1120s, C-Corporations file form 1120, and LLCs file either schedule C (single member) or Form 1065 (multiple member).  Multiple member LLCs file consistent with partnerships.  S-corporations and C-corporations both file forms 1120s and 1120 respectively.

S-Corporation and C-Corporation tax reporting deadline is March 15th and September 15th (extension due date).
LLCs (Single or multiple member) tax reporting deadline is April 15th and October 15th (Extended due date).

New York LLCs are required to advertise in a periodical, this can be quite expensive especially in NYC and the surronnding boroughs.

New York S-Corporations currently are not required to advertise.
Contact your NYC CPA for details on setting up a new LLC in NYC.