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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 South Carolina, there is no specific tax referred to as a 'franchise tax' or 'privilege tax' imposed on businesses for the privilege of doing business in the state. Instead, South Carolina imposes a corporate income tax on corporations doing business within the state. The corporate income tax rate is a flat rate applied to the corporation's taxable income, which is generally the net income of the business apportioned to South Carolina. The current corporate income tax rate in South Carolina is 5%. Additionally, South Carolina imposes a license fee, which is similar to a franchise tax, on corporations for the privilege of doing business in the state. This fee is calculated based on the corporation's capital and paid-in surplus apportioned to South Carolina. The minimum license fee is $25. It's important for businesses operating in South Carolina to comply with these tax obligations and to consult with an attorney or a tax professional for specific guidance tailored to their situation.

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Taxes

franchise tax

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South-Carolina State Code

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Taxes

franchise tax

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