Head-to-head • Updated 2026
New York vs California: Two High-Tax Giants Compared
NY Article 9-A ($25–$200,000 fixed minimum or 6.5% + MTA + city) vs CA $800 + receipts tiers (to $11,790) + 8.84%. Pick your burden.
Quick answers
- Should I choose New York or California?
- Operating in both means paying both in full: there is no domicile trick that erases the operating state. Minimize footprint, then pick the cheaper home.
| New York | California | |
| LLC/small floor | $25 minimum (+ city/UBT) | $800 + tiers to $11,790 |
| Corp income rate | 6.5% + MTA + city | 8.84% (1.5% S) |
| Economic nexus | $1.283M receipts | $757,070 sales / $75,707 payroll |
Cost to form and keep
| Formation | Annual minimum | Due | |
| New York | $200 Articles of Organization for an LLC, plus the publication requirement; $125 for a corporation | $25–$200,000 | April 15 (CT-3) |
| California | $70 LLC Articles (LLC-1) + $20 Statement of Information; corporations $100 + $25 | $800 | Apr 15 / Jun 15 |
Before registered-agent fees and before any tax on profit. Operating in a state means paying it no matter where the entity was formed.
New York: what else to know
- Corporations pay the higher of 6.5% of NY business income or the fixed dollar minimum, which scales with New York receipts.
- S-corps pay only the fixed dollar minimum ($25–$4,500) on Form CT-3-S by March 15.
- New York City adds its own corporate and unincorporated business taxes, and the MTA district adds a surcharge.
Full rules: New York Article 9-A.
California: what else to know
- The $800 is owed every year the entity exists, including an LLC’s first year for 2024+ formations; corporations are exempt in their first year only.
- LLCs add the § 17942 fee on California receipts of $250,000 or more: $900, $2,500, $6,000, or $11,790.
- C-corps pay 8.84% of California net income when that exceeds $800; S-corps pay 1.5%.
- Out-of-state entities doing business here pay the same amounts after registering ($70 LLC, $100 corporation).
Full rules: Start a California LLC.
Verdict
Operating in both means paying both in full: there is no domicile trick that erases the operating state. Minimize footprint, then pick the cheaper home.
Test where you actually owe tax with the nexus checker before choosing a home state.
Other head-to-heads
Sources
- State SOS / FTB / Division / Comptroller fee schedules; calculators on this site