There various types of taxes and different people need to pay them. Franchise taxes are for specific businesses.
Franchise taxes are paid by certain businesses in certain states.
It lets a company be chartered and operate in that state.
This means if it’s chartered in a different state, it could be subject to being this law in other states.
Which states have the franchise tax?
Alabama, Arkansas, California, Delaware, Georgia, Illinois, Louisiana, Mississippi, New York, North Carolina, Oklahoma, Tennessee, and Texas had this in 2020.
It isn’t a tax on a franchise business.
It’s for businesses like LLCs to operate within a state’s borders.
Nonprofits, limited liability companies, and fraternal organizations are exempt from this law.
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