Electing S-Corp status is only the beginning. Once the election is effective, owners who work in the business generally need to pay themselves through payroll. That means choosing a defensible salary, registering for the correct payroll accounts, withholding taxes, making deposits, and filing federal and New York payroll returns on time.
When you work for yourself, no employer handles your taxes. Every dollar that lands in your account is pre-tax money, and the IRS, New York State, and New York City all want their share before April. Miss the quarterly deadlines and penalties start accruing, quarter by quarter, whether or not you eventually pay the full amount.
Most New York business owners think about taxes twice a year: April, when they file, and January, when they panic. That gap is expensive. June is when the math still works. You have nearly six months of real income data, the second estimated tax deadline is here, and there is still enough runway to make decisions that affect your 2026 tax bill.
Choosing the wrong business structure costs New York owners thousands every year, not in penalties, but in taxes they never had to pay. I’ve worked with S-Corp owners in Manhattan and across the Tri-State Area for 28 years.
For many profitable New York business owners, the biggest tax problem isn’t under-earning. It’s staying in the wrong tax structure for too long. As LLC profits grow, so does exposure to self-employment tax, a 15.3% burden on the first $176,100 of net income, dropping to 2.9% above that.
One question rises above all others for business owners who elect S-Corporation status: how much do I have to pay myself? The answer determines your payroll tax bill, your IRS audit risk, the size of your QBI deduction, and whether your entire S-Corp tax strategy holds up under scrutiny.
Whether you’re managing taxes, growing a business, or preparing for the future, we’re here to help — with clarity, care, and commitment.
Colella CPA Company — Serving New York and the Tri-State Area with trusted tax, accounting, and bookkeeping expertise.
Colella CPA Company — Serving New York and the Tri-State Area with trusted tax, accounting, and bookkeeping expertise.
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