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What is franchise tax and does my company need to pay it?

State-level fees for the privilege of doing business.

Updated over 3 months ago

Franchise tax is a recurring state fee or tax for the privilege of operating a business there.

Some states:

  • Charge a flat fee

  • Charge based on income, assets, or shares

  • Do not have a franchise tax at all

You must check your state’s rules; missing franchise tax can push you out of good standing. BusinessAnywhere cannot provide tax advice or pay taxes on your behalf.

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