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.
Texas franchise taxes are due May 15th. If May 15 falls on a Saturday, Sunday or legal holiday, the next business day becomes the due date.
We wrote a detailed guide on Texas Franchise Taxes here.
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.
When paying over $500 of license fees (equivalent to having over $2.5M of assets in Wyoming), the annual report cannot be filed digitally.
Annual Reports for corporations, LLCs, and LPs are due on the first day of the anniversary month of formation.
We wrote a detailed guide on Wyoming Franchise Taxes here.
For Corporations, Wisconsin has a couple of filings that resemble franchise taxes, either in name or format that are typically field by an accountant.
Foreign registered Corporations in Wisconsin must report on "Capital representation" in Wisconsin on the state's annual report, which is used to calculate the filing fee. It requires detailed financial information.
The state also has Franchise Taxes, which are typically filed by an accountant, as they are virtually identical to Corporate Income Taxes. A Corporation will only pay Franchise Taxes or Corporate Income Taxes in a given year, not both.
Wisconsin has detailed information on who needs to file franchise taxes, and how to file on their website.
We wrote a quick guide on Wisconsin Franchise Taxes here.
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.
We wrote a quick guide on South Carolina License Fees here.
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.
We wrote a detailed guide on Illinois Franchise Taxes here.
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.
We wrote a detailed guide on Arkansas Franchise Taxes here.
Alabama has a Business Privilege Tax. It is typically filed by an accountant given the detailed financial information required. As of 2024, Alabama Annual Reports are due separately with the Secretary of State.
The tax is calculated based on net worth with some adjustments, multiplied by the “apportionment factor”, less deductions.
We wrote a quick guide on Alabama's Business Privilege Tax here.
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.
We wrote a guide on New York's 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's website.
We wrote a detailed guide about California's franchise taxes here.
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.
There is also an initial Net Worth Tax return due for C Corporations on the fifteenth day of the fourth month after initial registration in the state.
Georgia has an FAQ about both taxes on its state website.
We wrote a guide about Georgia's Net Worth Tax here.
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.
We wrote a short guide on Louisiana Franchise Tax here.
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, which is only open during the filing window (January 1 to April 15). Given the nature of the calculation, the Occupation Tax filing is typically handled by an accountant.
We wrote a short guide on Nebraska's Occupation Tax here.
Franchise Taxes in North Carolina are due as part of the Corporate income tax filing, and typically filed by an accountant.
North Carolina has detailed information about Franchise Taxes on their website.
We wrote a concise guide on the North Carolina's Franchise Tax here.
Oklahoma got rid of its franchise tax in 2024. Final franchise tax returns were due by June 1, 2024 for those paying the maximum tax, to avoid being delinquent. All other taxpayers were required to remit by July 1, and the final franchise tax return must be remitted on or before September 15, 2024.
Previously, every corporation doing business in Oklahoma had to file a Franchise Tax return, which was typically filed alongside the state corporate income tax filing, by an accountant. Oklahoma historically released a tax packet like this 2023 version where it described 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.
We wrote a short guide on Tennessee's Franchise Tax here.
