Get Utility Corporation Franchise Tax Return - Tax Ny

Corporate tax rates are lower than personal tax rates If you're relying on the money your company earns for your personal living expenses, your company has to pay you enough. You'll have to pay personal income tax on that amount, so the tax advantages are gone.

Franchising is a business model wherein an individual operates their own location of a larger, more established company. For example, when you go to your local McDonald's, Subway, Dunkin' Donuts, or nearly any hotel in the United States, you are most likely at a franchise location.

New York has a corporation franchise tax, which applies to both traditional (C-type) corporations and to S corporations, and a tax known simply as the "filing fee," which applies to LLCs, limited liability partnerships (LLPs), and some regular partnerships.

An LLC or LLP treated as a corporation for federal income tax purposes may be required to file a New York State corporation franchise tax return. An LLC or LLP may be required to pay a filing fee and/or estimated income tax on behalf of certain partners or members.

For a franchise grantee, it follows that the local government (province or city) may impose the franchise tax thereon in addition to other national tax obligations.

The corporate franchise tax is paid by most businesses in the state for the privilege of doing business in California, while the corporate income tax is paid by businesses which do not have sufficient presence or activity in the state for franchise tax purposes. The bank tax is paid by banks and financial institutions.

Generally, every corporation must file a Form D-20, “District of Columbia (DC) Corporation Franchise Tax Return”—including small businesses, professional corporations, and S corporations—if it's carrying on or engaging in any trade, business, or commercial activity in D.C. or receiving income from D.C. sources.

If your business is incorporated in New York State or does business or participates in certain other activities in New York State, you may have to file an annual New York State corporation tax return to pay a franchise tax under the New York State Tax Law.