Can I claim a credit / deduction / something on my "personal income tax" for the "city corporate income tax" that my LLC company located in NYC had to pay?

Forum|Forum|7 years ago
June 5, 2019
1 reply
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I live in Chicago. My company is a LLC incorporated in NYC. So my understanding is that my company needs to pay "city income tax" over its revenue because it is in NYC. It is also my understanding that the net profits of my company (revenue - expenses - city taxes, etc.) will go to me and then I'll have to pay personal income taxes (federal and state) over that received income. My question is: Am I entitled to any credit / deduction / anything on my personal income taxes (federal and/or state) because of the fact that I live in Chicago (no city taxes here) and my company is in NYC paying city taxes? Am I doing something wrong (i.e. less optimal for tax purposes) assuming I'm not able to move my company to Chicago in the short run?

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Best answer by loukur2

A corporation is a not natural "person". Yours appears to "live" in NYC. Maybe an "S" corporation would be a better choice for next time. There everything flows to you.

The income from the LLC will certainly be reduced by the NYC taxes it will pay, so it seems you should be taxed only the after-tax amounts that flow to you. Really need more details to understand what the situation is.