New York City's Unincorporated Business Tax under N.Y.C. Admin. Code §11-501 ¹ imposes a 4% tax on the net income of unincorporated entities (partnerships, LLCs taxed as partnerships, sole proprietorships) carrying on a trade or business in the five boroughs. For our Manhattan-based partners, lawyers, consultants, and creative professionals, the UBT is often the single largest state-or-local tax line item, and it is non-creditable against the NYC PTET. The $95,000 exclusion and the credit at the personal-income-tax level partially offset, but the structure rewards careful entity choice and allocation work.
You've read the first three minutes.
The rest is free. Verify your email to continue.
We send a six-digit code to your inbox. Enter the code below to unlock the full essay and every other essay in the archive. The Journal arrives quarterly. Nothing else.