Maine Tax Overview
Maine does not have a franchise tax for LLCs. The state has an income tax that applies to LLCs on a progressive scale based on income level. Some states report using both economic and physical presence tests to define franchise tax. Despite the name, franchise taxes have nothing to do with franchises.
Tax Obligations for Small Businesses in Maine
Maine does not have a franchise or privilege tax. Sales tax of 5.5%-6.5% applies to goods and some services. Estimated tax payments are required if owing $1000 or more. Goods subject to sales tax in Maine include furniture, home appliances, and motor vehicles. Certain items like groceries, prescription medicine, and gasoline are tax-exempt.
Property Taxes in Maine
Property tax rates in Maine are above the U.S. average. The typical resident pays $2,597 per year. The average effective property tax rate in Maine is 1.30%, while the national average is 1.07%.
Iowa Banking Franchise Tax
Iowa does not have a franchise tax on corporations or business owners. However, banking associations, financial institutions, banks, trust companies, and federally chartered savings banks doing business within the state are subject to franchise tax. The Franchise tax is imposed at a rate of 5% on income apportioned to Iowa.
Iowa Income Tax for Small Businesses
The tax rates for small businesses in Iowa will vary depending on the business structure and the type of income generated. Sole Proprietorships and Single-Member LLCs are taxed at the individual owner’s personal income tax rate. Businesses incorporated in Iowa are subject to different tax requirements based on their structure.
Iowa Tax Credits and Additional Information
Businesses in Iowa are subject to various taxes, including income tax and sales tax. Corporation’s pay a 9% corporate income tax, and the sales tax rate is currently 6%. Iowa offers tax credits like the Earned Income Tax Credit and child and dependent care credit. Iowa Professional Corporations are subject to state taxes, including the franchise tax based on the annual net income.