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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 Utah, the franchise tax is commonly known as the corporate franchise tax, which applies to corporations doing business within the state. This tax is essentially a tax on the net income of the corporation and is considered a tax for the privilege of doing business in Utah. The rate is currently 4.95% of the corporation's net income. It's important to note that other business entities, such as LLCs (Limited Liability Companies), are not subject to the corporate franchise tax but may be subject to other state taxes. Utah also offers various credits and incentives that can reduce the amount of franchise tax a corporation owes. Businesses are required to file tax returns annually to report their income and calculate their tax liability.

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Taxes

franchise tax

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Taxes

franchise tax

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