States levy a variety of different types of taxes besides income taxes that are often aggregated under the term “franchise tax", although naming conventions vary widely by state. Discern can help with franchise tax (for Corporations) and annual tax (for LLCs) filings in Delaware.
In some other states, it makes more sense for your Accountant to assist in a tax filing, as they may require extensive accounting data, or are typically filed in conjunction with your other business state tax returns, as opposed to via a Registered Agent.
For these states, Discern has compiled some helpful resources:
The Texas franchise tax is a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas. The tax is calculated as a percentage of a business’ margin, which most likely requires detailed input from your accountant. Even if your entity qualifies for “no tax due”, you need to file a Texas Franchise Tax Report.
Texas has detailed information on the applicability of the franchise tax to your legal entity, and how to pay it on its website.
Wyoming technically doesn’t have a “franchise tax”, but the filing fee (or “Annual Report License Tax”) for the annual report uses a calculation of total assets in the state of Wyoming, which an accountant typically files.
For Corporations, Wisconsin franchise taxes are typically filed by your accountant alongside corporate income tax filings.
Wisconsin has detailed information on who needs to file, and how to file on their website.
In lieu of a separate annual report, information is filed with state corporate income tax filings by your accountant.
South Carolina has detailed information on who needs to file, and how to file on their website.
Illinois Corporate franchise taxes are calculated using paid-in-capital, and typically filed by your accountant.
Illinois provides a worksheet to calculate your tax directly on the annual report filing.
Arkansas franchise taxes are typically filed by your accountant.
Arkansas has detailed information on who needs to file, and how to file on their website.
Alabama has a business privilege tax. As the state describes it: “The tax is calculated on net worth plus additions, minus exclusions, times the apportionment factor, less the deductions, which equals taxable net worth.”
It’s typically filed by your accountant.
