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Franchise Tax

An annual fee usually levied annually upon a corporation, limited liability company or similar business entity for the right to exist or do business in a particular state. Failure to pay the franchise tax or similar fees by a required deadline may result in the administration dissolution of the company and forfeiture of the charter. This term refers to an annual fee, NOT that the corporation itself is a franchise.

An annual fee usually levied annually upon a corporation, limited liability company or similar business entity for the right to exist or do business in a particular state. Failure to pay the franchise tax or similar fees by a required deadline may result in the administration dissolution of the company and forfeiture of the charter. This term refers to an annual fee, NOT that the corporation itself is a franchise.