Franchise Tax*

2015 07 01 | Category: Offshore Glossary

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Franchise Tax*
A tax or fee on the privilege, imposed by a state government on a corporation, limited liability company or similar business entity for the right to exist or do business in a state. The value of the franchise tax may be measured by amount of earnings, assets, total value of capital or stock, or by amount of business done. Failure to pay the franchise tax or similar fees may result in the administration dissolution of the company and forfeiture of the charter.


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