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The term "subfranchisor" means "a person. A franchise tax is levied at the state level against businesses and partnerships chartered within that state and is not a tax on franchises.Taxes: Limited liability partnerships are subject to a state franchise tax. Franchise tax frequently asked questions about reports and payments. Each taxable entity formed in Texas or doing business in Texas must file and pay franchise tax. Compare business structures ; Sole proprietorship, One person, Unlimited personal liability, Self-employment tax. Cost: An LLC usually costs more to form and maintain than a sole proprietorship or general partnership. States charge an initial formation fee. And limited partnerships ("LP"). While less identified with franchising, traditional or product distribution franchising is larger in total sales than business format franchising.
