LLC vs S Corp in High-Tax States (California, New York, etc.)

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In this video, I go over the differences between LLCs and S corporations in high tax states like California and New York, and help you understand which one could save you more money. If you’ve been frustrated by high state fees or confused about whether an S corp election is really worth it, this breakdown will give you clarity. I’ll walk you through how each structure works, where the real costs show up, and what makes sense depending on your profit, revenue, and location.

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Be sure to watch this video until the end because I’ll cover how California’s gross receipts fees compare to the 1.5 percent S corp tax, what New York’s publication requirement means for LLCs, and how payroll taxes fit into the decision. Choosing the wrong entity can leave you paying more than you should, and this video will help you avoid the common mistakes business owners make when setting up in states with tough tax laws.
 
LLC vs S corp in high tax states is one of the most important choices small business owners face, especially in 2025 when state fees and income taxes are at record highs. LLCs offer flexibility and simpler setup, but in states like California they come with annual franchise taxes and gross receipts fees. S corps can help reduce self employment taxes and in some cases cut down state level fees, but they also come with payroll requirements and extra filings. If you’re searching for the best business structure in California, New York, or other high tax states, or want to compare LLC fees, S corp taxes, and state specific costs, this video breaks it all down so you can make a smarter choice.

For more information on LLCs and business formation, check out our other videos:

Sole Proprietorship vs LLC vs S Corp: Which Is The Best & Cheapest to Start?:
https://youtu.be/HU58uCr8sAo

LLC S Corporation Election: Complete Step-by-Step Guide:
https://youtu.be/XIL4EApD_W4

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Thanks for watching, and I hope you have a wonderful rest of your day!

– Eric

#LLC #LLCTaxes #LLCFormation

Timeline:
0:00 - Introduction
0:38 - LLCs vs S corps: key differences
2:37 - California: high business taxes
5:49 - New York: state and local factors
8:26 - Other high-tax states overview
10:55 - Choosing between an LLC and S corp
13:12 - Conclusion

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In addition, we are not financial advisors. LLC Deals does not provide tax, legal, or accounting advice. The ideas presented in this video are for entertainment purposes only. Please do your due diligence before making any financial decisions.

Видео LLC vs S Corp in High-Tax States (California, New York, etc.) канала LLC Deals