The DC Franchise Tax applies to corporations and unincorporated businesses. It is based on net income derived from business in DC. The minimum tax is $250 if DC gross receipts are $1 million or less. The minimum tax is $1,000 if DC gross receipts exceed $1 million. The tax rate for corporations is 8.25%. Franchise tax is a deductible business expense. DC also has sales, payroll, property, and other taxes. Tax laws are complicated, so consult a tax advisor.
- Minimum Tax:
$250if DC gross receipts are$1 millionor less$1,000if DC gross receipts exceed$1 million
- Corporate Tax Rate:
8.25%
Franchise tax applies to corporations and some other business entities like LLCs. The tax rates and rules vary by state. In Louisiana, franchise tax applies to businesses considered corporations. If businesses don’t pay on time, they may lose operating privileges and owe fines. New York, Georgia, North Carolina, and Oklahoma also have forms of franchise taxes. These taxes support state budgets. Companies should consult a tax advisor since laws are complicated.