Understand corporate franchise taxes, how they impact your LLC, rates, due dates, and more...

Franchise taxes are often paid instead of or in addition to corporate income taxes. These fees may apply to many entity types, not just C-Corporations.

Franchise taxes, also commonly referred to as Business Privilege fees, are effectively an additional payment required to stay in good standing with the state.

Unlike many other types of compliance fees, franchise taxes are treated much like regular taxes – in that you owe them, and can’t really avoid them, as long as you have an entity on file with the state.

For example, California imposes a minimum franchise tax of $800 on corporations. This minimum fee is required of all entities, regardless of whether they earn income or even if they don’t remain in good standing.

In some cases, you may still be liable for these taxes even if the entity is administratively dissolved (i.e. you didn’t stay compliant so the Secretary of State dissolved your entity).

Given the level of obligation here and the potential for large fees due, in addition to corporate income taxes, it’s really import to be aware of your state’s requirements.

We’ve provided both a quick-glance table of fees by state, and elaborated on each with additional information so you can see how the tax is calculated and even go to the relevant government website for additional information.

We can absolutely assist with filing of any Annual Reports, and in some states like Illinois the franchise tax is paid along with the annual report.

However, in most states filing for and paying franchise taxes should be done directly by you, or your accountant.

15 minutes is all it takes, are you ready?

Launch your new business today for just $129 + state fees.

Last Updated: March 2018MinimumMaximum
Alabama$100 $15,000
Arkansas$150 No Max
California$800 $800
Delaware$75 ($300 LLC)$180,000 ($300 LLC)
GeorgiaNo Min$5,000
Illinois$25 $2,000,000
Louisiana$10 No Max
Mississippi$25 No Max
New York$25 $15,000
North Carolina$35 No Max
OklahomaNo Min$20,000
Tennessee$100 No Max
TexasNo MinNo Max
  • Name: Business Privilege Tax
  • Collecting Authority: Alabama Department of Revenue
  • Due Date: 3.5 Months After Fiscal Year End (C-Corp); 2.5 Months After Fiscal Year End (C-Corp with fiscal year ending June 30); 2.5 Months After Fiscal Year End (LLC)
  • Minimum Fee: $100
  • Maximum Fee: $15,000
  • Calculation: 0.175% on income over $2.5 Million
  • Name: Corporate Franchise Tax
  • Collecting Authority: Arkansas Secretary of State
  • Due Date: May 1st
  • Minimum Fee: $150
  • Maximum Fee: None
  • Calculation: 0.3% of par value of stock ($25 per share of no-par value stock)
  • Name: Corporate Franchise Tax
  • Collecting Authority: California Franchise Tax Board
  • Due Date: 3.5 Months After Fiscal Year End (C-Corp), 2.5 Months After Fiscal Year End (LLC)
  • Minimum Fee: $800
  • Maximum Fee: $800
  • Calculation: Flat fee, Corporations are subject to income tax as well in addition to the minimum Franchise Tax. LLC’s only pay the minimum franchise tax.
  • Name: Corporate Franchise Tax
  • Collecting Authority: Delaware Division of Corporations
  • Due Date: March 1st
  • Minimum Fee: $75 (Corporation), $300 (LLC)
  • Maximum Fee: $180,000 (Corporation), $300 (LLC)
  • Calculation: $75 for each 10,000 shares of stock
  • Name: Net Worth Tax
  • Collecting Authority: Georgia Department of Revenue
  • Due Date: 3.5 Months After Fiscal Year End 
  • Minimum Fee: None
  • Maximum Fee: $5,000
  • Calculation: Bracketed tax net worth with the highest rate of $1 per $1,000 net worth and the lowest at $1 per $4,000 in net worth
  • Name: Corporate Franchise Tax
  • Collecting Authority: Illinois Secretary of State
  • Due Date: Month Previous to Anniversary
  • Minimum Fee: $25
  • Maximum Fee: $2,000,000
  • Calculation: 0.1% of paid-in-capital
  • Name: Corporate Income and Franchise Tax
  • Collecting Authority: Louisiana Department of Revenue
  • Due Date: 4.5 Months After Fiscal Year End
  • Minimum Fee: $10
  • Maximum Fee: None
  • Calculation: $1.50 per $1,000 in net worth up to $300,000, $3 per $1,000 in net worth over $300,000
  • Name: Corporate Franchise Tax
  • Collecting Authority: Mississippi Department of Revenue (PDF)
  • Due Date: 3.5 Months After Fiscal Year End
  • Minimum Fee: $25
  • Maximum Fee: None
  • Calculation: $2.50 per $1,000 in the greater of net worth or assessed value of real and tangible personal property in the state
  • Name: Corporate Franchise Tax
  • Collecting Authority: New York Department of Taxation and Finance
  • Due Date: April 15th (Calendar year filers), 3.5 Months After Fiscal Year End (Fiscal year filers)
  • Minimum Fee: $25
  • Maximum Fee: $15,000
  • Calculation: Greater of 0.15% of net worth or the 7.1% flat-rate income tax
  • Name: Corporate Franchise Tax
  • Collecting Authority: North Carolina Department of Revenue
  • Due Date: 3.5 Months After Fiscal Year End
  • Minimum Fee: $35
  • Maximum Fee: None
  • Calculation: $1.50 per $1,000 of the greatest of net worth, 55% of assessed value of real and tangible personal property, or investment in tangible personal property
  • Name: Corporate Franchise Tax
  • Collecting Authority: Oklahoma Tax Commission
  • Due Date: July 1st
  • Minimum Fee: None
  • Maximum Fee: $20,000
  • Calculation: $1.25 per $1,000 of net worth in excess of $200,000
  • Name: Corporate Franchise Tax
  • Collecting Authority: Tennessee Department of Revenue
  • Due Date: April 15th
  • Minimum Fee: $100
  • Maximum Fee: None
  • Calculation: $.25 per $100 in net worth
  • Name: Corporate Franchise Tax
  • Collecting Authority: Texas Comptroller of Public Accounts
  • Due Date: May 15th
  • Minimum Fee: None
  • Maximum Fee: None
  • Calculation: 1.0% of either gross receipts in excess of $1 million, cost of goods sold, employee compensation, or 70% of gross receipts

*Disclaimers: This information is manually curated and updated periodically. The accuracy of this information is not guaranteed, and no warranties are given or implied.

15 minutes is all it takes, are you ready?

Launch your new business today for just $129 + state fees.

Free Business Name Search

This is a complimentary free name search, we’ll respond via email with any findings. This doesn’t initiate or replace a corporate filing order. 

15 minutes is all it takes, are you ready?

Launch your new business today for just $129 + state fees.