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.

Vermont does not impose a traditional franchise tax on businesses. Instead, the state requires businesses to pay corporate income taxes based on their net income. The corporate income tax rates in Vermont vary depending on the amount of taxable income, with different brackets established for the tax rates. Additionally, Vermont levies a minimum corporate tax, which applies regardless of the level of income. This minimum tax is not based on income but rather on the corporation's existence and privilege of doing business in the state. For entities such as limited liability companies (LLCs), partnerships, and S corporations, Vermont does not charge a corporate income tax; instead, income from these entities is passed through to the individual owners and taxed at their personal income tax rates. It's important for businesses operating in Vermont to consult with an attorney or a tax advisor to understand their specific tax obligations and ensure compliance with state tax laws.

Legal Articles

State Statutes

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

For about 82¢ a day you can have a LegalFix Legal Plan that includes initial consultations with an attorney at no additional charge—and additional legal services at reduced rates—all from top law firms in your state. Don't wait—be prepared for life's inevitable legal challenges, starting today.

And ask your employer, credit union, or membership group to offer LegalFix for even better pricing.

Taxes

franchise tax

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

Articles

Vermont State Code

Vermont State Code

Taxes

franchise tax

Articles