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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.

In North Carolina, the franchise tax is a tax levied on corporations, limited liability companies (LLCs), and certain other business entities for the privilege of doing business in the state. This tax is administered by the North Carolina Department of Revenue. The franchise tax is not based on income but rather on the greater of three potential bases: the entity's net worth, 55% of the appraised value of property in North Carolina, or the actual investment in tangible property in the state. The tax rate is $1.50 per $1,000 of the tax base, with a minimum tax of $200. It's important for businesses operating in North Carolina to understand their obligations under the franchise tax laws and to comply with the filing and payment requirements to avoid penalties and interest.

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Taxes

franchise tax

As a LegalFix Member You Will Be an Important Client of Local Law Firms

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North-Carolina State Code

North-Carolina State Code

Taxes

franchise tax

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