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 Oregon, there is no specific tax referred to as a 'franchise tax' or 'privilege tax' on businesses. Instead, Oregon imposes a corporate income tax on corporations doing business in the state, which is based on the corporation's net income. The state also has a Corporate Activity Tax (CAT), which is not a franchise tax but is a tax for the privilege of doing business in Oregon. The CAT applies to businesses, including C corporations, S corporations, partnerships, sole proprietorships, and other entities, with Oregon commercial activity in excess of $1 million. The tax is calculated as $250 plus 0.57% of Oregon commercial activity over $1 million. It's important for businesses operating in Oregon to understand their tax obligations under the state's corporate income tax and the Corporate Activity Tax, and to comply with any filing and payment requirements.

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

Oregon State Code

Oregon State Code

Taxes

franchise tax

Articles