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 most other states, accountants handle franchise taxes, as they usually require extensive accounting data, and are typically filed in conjunction with your other business state tax returns. The concept of Franchise taxes are most often used by states as a sort of minimum tax to do business in the state (regardless of profitability).
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, a Corporate License Fee and Annual Report 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.
Both foreign and domestically registered general business corporations typically file Franchise Taxes alongside their corporate tax return, by an accountant. New York has short instructions on the basics of its franchise tax here.
California has a minimum tax for Corporations called a Franchise Tax. Every corporation that is incorporated, registered, or doing business in California must pay the $800 minimum franchise tax. It's due with your California tax return.
California has detailed information about the Franchise Tax on the Franchise Tax Board's website.
LLCs in California owe an Annual LLC tax which has separate instructions on the California Franchise Tax Board' website.
Georgia has a Net Worth Tax which is additional to its Corporate Income Taxes, due at the same time. It's typically filed by an accountant.
Georgia has an FAQ about both taxes on its state website.
Louisiana has a Franchise Tax based on Capital Employed in addition to their Corporate Income Taxes. It's typically filed by an accountant.
Louisiana has detailed information about both taxes on the Revenue department's website.
Nebraska has an Occupation Tax at the state level, which is based on the amount of paid up capital stock (domestic corporations) or Amount of real estate and personal property in Nebraska (foreign corporations). For corporations, it's due on "even numbered years".
Nebraska has basic instructions on their state website, and an online filing portal. Given the nature of the calculation, the Occupation Tax filing is typically handled by an accountant.
Franchise Taxes in North Carolina are due alongside Corporate income taxes, and typically filed by an accountant.
North Carolina has detailed information about Franchise Taxes on their website.
Every corporation doing business in Oklahoma must file a Franchise Tax return, although typically this is filed alongside a corporate income tax filing in Oklahoma, by an accountant.
Oklahoma releases a tax packet like this 2023 version where it describes details about both tax filings.
Tennessee has a Franchise Tax due alongside its Excise Tax, typically filed by an accountant.
Tennessee has information on both Franchise and Excise Taxes on its website.
