6 Things Every Business Owner Should Know About Franchise Taxes

Franchise Taxes
Do you owe franchise tax?

If there is one thing we can count on as business owners…it’s taxes.

Of course, we all know about income and payroll taxes.

But one tax is coming up that you might have forgotten about. Franchise Tax.

What is a franchise tax?

Unlike the name implies, it is not just a tax on a franchise. So, even if you are NOT McDonald’s, you might have to pay.

All companies get to pay the franchise taxes for the privilege of doing business in some states. (That’s right…not all states have this tax.)

Also remember. If you’re doing business in multiple states, you may have to file the tax in all the states of operation. It really depends.

How much should I pay?

That’s a tough one because the rules and rate vary from state to state. It just depends.

The unique thing is, it’s not like the taxes that are solely based on income.

Instead, the rates may be assessed on the companies net worth or cash on hand. But…it will depend on each state.

What if I don’t file?

We would risk it. But you could certainly expect penalties and late fees.

In some cases, a company’s right to do business in the sate may be revoked.

It kind of depends.

When are the franchise taxes due?

Just like the rates and rules…in depends on the state.

But we can tell you the following states are due by April 15th:

  • Kansas
  • Maryland
  • Mississippi
  • Montana
  • North Carolina
  • Puerto Rico

What are some of the things you’ll need?

This also depends. But you can count on a few constants. Things like:

  • Business address(es)
  • Depending on the business formation (Corporation or LLC), you need the names of the:
    • Members/Managers
    • Officers
    • Partners
  • Name of your registered agent. (How can IncorpNation help with that.)

How can IncorpNation help?

If you noticed, there were a lot of “it depends” above.

Well. We know what all those “depends” are, so you don’t have to.

Plus, would you rather be generating revenue…or figuring out all of those depends?

It’s completely up to you.

But here’s one thing you do know for sure…we can help…we guarantee it.

Contact us now.

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