New York lesson 5 of 6
EIN, IT-204-LL and New York taxes
New York has a state layer and, for many businesses, a city layer on top. Understanding which applies to you before your first year end avoids unpleasant surprises.
The EIN
Apply free through the IRS after your Articles are approved. There is no state charge and no state equivalent number issued at formation.
The annual filing fee, Form IT-204-LL
LLCs with income, gain, loss or deduction from New York sources file Form IT-204-LL with the Department of Taxation and Finance and pay an annual filing fee. The fee is tiered by New York source gross income, starting at $25 for the smallest filers and rising into the thousands for the largest. The tiers are statutory, so check the department's current page for the exact bands in your filing year.
The IT-204-LL fee is separate from the $9 Biennial Statement paid to the Department of State. Two agencies, two obligations.
Banking and separating finances
Once the EIN letter arrives, open a business bank account in the LLC name. A New York bank will usually ask for the filing receipt or stamped Articles of Organization, the EIN letter, the operating agreement, and identification for anyone signing or holding significant ownership.
Run every payment in and out of that account. Mixing business and personal money is the most common reason a court looks past the LLC and holds owners personally liable.
Sales tax and the New York City layer
If you sell taxable goods or services you register as a sales tax vendor with the Department of Taxation and Finance before making sales. If your LLC carries on a trade, business or profession in New York City, the city Unincorporated Business Tax applies on top of state tax. The New York City Department of Finance sets the UBT rate at 4 percent of taxable income allocated to New York City. An income exemption and a graduated UBT credit reduce or remove the tax for smaller businesses, and the credit fully eliminates it at the lowest income levels, so check the current thresholds on the Department of Finance page for your year.
Key takeaways
- The EIN is free from the IRS, and a separate business bank account follows straight after.
- IT-204-LL is the state annual filing fee, tiered by New York source income.
- Operating in New York City adds the 4 percent Unincorporated Business Tax on city allocated income, subject to exemptions and credits.
Official sources
Or let us file your New York LLC for you
Everything above is yours to use for free. If you would rather hand it over, we prepare and file the Articles of Organization, act as your registered agent, and track your ongoing deadlines.
Last reviewed: September 2026 - reviewed by Gullia Filing Legal & Formation Team