The owner’s money decisions,
taken with numbers
6 guides for business owners in the US: what an S corp actually saves in New York City, the estimated tax safe harbour, solo 401(k) versus SEP, credit that survives company spending, and the mortgage when you are self-employed.
- Estimated Tax for New York Business OwnersThe safe harbour is 100% of last year's tax, or 110% above $150,000 of income. Pay that and underpayment penalties stop, whatever this year turns out to be.
- Home Office Deduction and the Accountable PlanS corp owners cannot take the home office deduction on a personal return. An accountable plan reimburses the same costs instead, and it is the correct route.
- NYC Unincorporated Business Tax vs S CorpAn S corp can save around $13,000 in payroll tax at $200,000 of profit. New York City then charges it 8.85% instead of 4%, and most of that saving disappears.
- S Corp vs LLC for a New York BusinessThe LLC gives liability protection. The S election is a separate tax choice that changes payroll, city tax and filings. How to decide each one on its own terms.
- Solo 401(k) vs SEP IRA for Business OwnersAt $100,000 of net profit, a SEP allows roughly $20,000 and a solo 401(k) roughly $44,000. The difference is the employee deferral, and it is the whole argument.
- The Augusta Rule: 14 Tax-Free Days a YearSection 280A(g) lets you rent your home to your own company for up to 14 days a year. The company deducts it, you report nothing. What it takes to hold up.
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Setting up or restructuring a US business? Tell us the profit level, the state and whether property is part of the plan, and we will walk the entity, payroll and tax decisions with you.
Important notice
The figures on this page are general information as of August 2026 and do not represent an offer, a quote, or a guarantee of any transaction terms. Reinvent NY does not provide legal, tax, or investment advice. Confirm anything material with an attorney and a CPA before you act on it. Nothing here is a solicitation to invest, and no return is promised. Real estate brokerage services are provided through R New York.