| If you own a franchise business, then there are a few | | | | information to the respective department. |
| taxes that you are need to pay to make sure that | | | | The franchise taxes have to be paid by the |
| your business runs smoothly and you don't have to | | | | corporations including the domestic as well as foreign. |
| face any legal / tax complications in the future. | | | | They also include partnerships, some owners, and |
| All the corporations that are supposed to file the | | | | even Limited Liability Companies (LLC). "Corporation" |
| Annual Franchise Taxes. The new franchise tax and | | | | also includes the trusts, joint stock companies, and |
| fee law introduced in the year 2004 requires all the | | | | other associations and organizations that operate for |
| franchise businesses to pay a State Authority | | | | profits, have a capital stock, or shares, and special |
| franchise tax and another franchise fee to the | | | | privileges. |
| Secretary of the State every year before April 15. | | | | The franchise taxes are supposed to be filed a year in |
| The franchise taxes are of two kinds: the organization | | | | advance depending upon the assets of the enterprise |
| taxes and the doing business taxes. The organization | | | | as of the first day of the taxable period. Let us take |
| taxes are the taxes that have to be paid by | | | | an example: If a new business enterprise incorporates |
| franchises to exist as a corporation. On the other hand, | | | | in April 20, 2004, with its accounting period ending on |
| the doing business taxes are ones that have to be | | | | December 31, 2004, then, it is supposed to file its first |
| paid by the corporations for having the privilege of | | | | franchise tax return on the 15th day of the 4th month |
| doing business within the limits of the taxing authorities. | | | | from the time the taxable period begins. |
| The franchise taxes and the fees were paid to the | | | | In this way, the date that will be due for the initial |
| Secretary of States, in the past, at the time of filing the | | | | franchise tax return for that entity will be August 15, |
| annual report. With the new franchise tax law, the | | | | 2004, depending upon the qualification date and the |
| taxes are to be filed with the Department of Revenue | | | | assets it had at the time of its incorporation. |
| after filling up the tax form K-150, and the franchise | | | | The business entities that have a net worth of |
| fee is to be paid to the Secretary of States along with | | | | $100,000 or more in a state should pay a franchise tax |
| the annual report. | | | | of 0.125% of their total net worth to the State |
| There are a few things that you are supposed to | | | | Department of Revenue along with their taxpayer's |
| keep in mind, even if your corporation is not a | | | | balance sheet. Various credit balances are deducted |
| franchise, you are still supposed to follow the franchise | | | | from the franchise tax to calculate the amount owed. |
| tax. In this case, the franchise tax will be considered a | | | | If the calculated amount of tax is found to be less than |
| business tax based upon the corporation's assets. All | | | | $100, then, your corporation is not required to pay the |
| corporations are supposed to file the franchise tax. In | | | | franchise tax for that period. Yet, filing is still important. |
| case no tax is due, the corporation has to give its | | | | |