A franchise tax is a fee paid by certain businesses that want to do business in certain states. Contrary to what the name implies, a franchise tax is not a franchise tax.
Certain organizations are exempt from franchise tax, including fraternal organizations, non-profit organizations, and some limited liability corporations.
Franchise taxes are in addition to federal and state income taxes.
The amount of franchise tax can vary greatly depending on the tax rules in each state and is not calculated on the profit of the organization.
Kansas, Missouri, Pennsylvania and West Virginia have eliminated taxes on corporate franchises.
Choice 83(b) is an Internal Revenue Code (IRC) provision that gives an employee or startup founder the ability to pay taxes on the total fair market value of the restricted shares at the time of grant.
The Federal Unemployment Tax Act (FUTA) is a law that imposes a payroll tax on any business with employees; the income generated is used to fund unemployment benefits.
Business partners, S corporation shareholders, and investors in limited partnerships and certain ETFs use Appendix K-1 to report their income, losses, and dividends.
External economies of scale - these are factors that contribute to the development of business, which are manifested outside the company, but within the same industry.