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Simple English definitions for legal terms

franchise tax

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A quick definition of franchise tax:

Franchise tax: A tax that businesses or corporations have to pay to the state for the right to exist and do business in that state. It is not the same as income tax and must be paid even if the business doesn't make a profit. The amount of tax varies depending on the state and can be a flat fee or a percentage of the business's net worth. Some states only use the tax on small businesses while others use it on large corporations as well. If a business operates in multiple states, it may have to pay more than one franchise tax.

A more thorough explanation:

The franchise tax is a type of tax that states impose on businesses or corporations that are chartered within that state. This tax is charged for the right of the business or corporation to exist as a legal entity and to do business within a particular state.

For example, if a business is registered in the state of Delaware, it must pay a franchise tax to the state for the privilege of doing business there. The amount of the tax can vary depending on the state and the size of the business.

The franchise tax is not the same as income tax, which is based on the profits of the business. Instead, it is typically a flat fee or based on the net worth of the business. This means that even if a business does not make a profit, it still must pay the franchise tax.

Some states only use the tax on small businesses, while others use it on large corporations as well. If a business operates in multiple states, it may be subject to more than one franchise tax.

For example, in Delaware, the minimum franchise tax is $175.00 and the maximum is $250,000.00. In New York, the franchise tax ranges from $25.00 to $200,000.00.

Overall, the franchise tax is a way for states to generate revenue from businesses that operate within their borders. It is a cost of doing business in a particular state and must be paid by all businesses that are registered or operate within that state.

franchise agreement | franchisee

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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