I have a small (one person) IT consulting business (S Corporation) in Southern California. I’m considering moving to New York City for personal resons.
During my research I found out there’s a General Corporation Tax (GCT), which is 8.85% of the company’s net income. Is that correct? In contrast here in California there’s only a fee of 800 dollars/year for corporations.
That means I’ll have to increase my rates by at least by 8.85% to cover the GCT, on top of the adjustment due to the higher cost of living in NYC, which is about 20%.
I ran the numbers and they don’t add up; The rate goes through the roof.
Am I missing something? How do small consulting businesses survive in NYC?
