The detail
What it means in practice.
Despite the name, a franchise tax has nothing to do with franchises. It's a state's yearly tax on a company for being formed or doing business there, calculated on shares, assets, margin or a flat amount depending on the state. Delaware corporations pay one by 1 March. Texas companies file a franchise tax report and owe tax only above a revenue threshold. California's $800 yearly LLC tax works in a similar way.
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