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franchise tax

A franchise tax is a state tax on businesses and other entities (corporations, limited liability companies, trusts, etc.) that are formed in or doing business in a state.

A franchise tax is said to be a tax on the privilege of doing business in a state and is sometimes referred to as a privilege tax. The amount of tax due is often calculated as a percentage of a business’s income, for example.

Alaska does not impose a traditional franchise tax on businesses. Instead, the state requires corporations to pay an annual Corporation Net Income Tax, which is based on the corporation's federal taxable income. The tax rates vary depending on the amount of taxable income, with a minimum tax for corporations that have a net income. Additionally, Alaska charges a biennial Business License Fee, which all businesses must pay to operate legally within the state. This fee is not based on income or profits but is a flat rate required for the maintenance of a business license. It's important to note that while Alaska does not have a franchise tax, it does have other forms of taxation that businesses must be aware of, such as the Corporation Net Income Tax and the Business License Fee.

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Taxes

franchise tax

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Taxes

franchise tax

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