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 Georgia, the state does not impose a traditional franchise tax on businesses. Instead, Georgia levies an annual registration fee for entities such as corporations, limited liability companies (LLCs), and limited partnerships that are registered to do business in the state. This fee is required to maintain the entity's good standing with the Georgia Secretary of State's office. The fee is a flat rate rather than a percentage of the business's income. As of the knowledge cutoff in 2023, the annual registration fee for most entities in Georgia is $50. It's important for businesses to pay this fee on time to avoid penalties and to ensure they can continue to legally operate within the state.

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Taxes

franchise tax

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Georgia State Code

Georgia State Code

Taxes

franchise tax

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