Select your state

Taxes

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.

In Connecticut (CT), the state does not impose a traditional franchise tax on businesses. Instead, Connecticut requires certain business entities to pay a Business Entity Tax (BET) every two years. This tax applies to S corporations, limited liability companies (LLCs), limited liability partnerships (LLPs), and limited partnerships (LPs). The BET is a flat fee rather than a percentage of the business's income. As of the knowledge cutoff in 2023, the fee is $250 every two years. It's important for businesses operating in Connecticut to be aware of this requirement and to file the necessary forms and payments with the Connecticut Department of Revenue Services to remain in compliance with state tax regulations.

Legal Articles

State Statutes

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Taxes

franchise tax

Individual & Family Legal Plan

Articles

Connecticut State Code

Connecticut State Code

Taxes

franchise tax

Articles