Glossary

Franchise tax

Also called: franchise taxes, privilege tax

A recurring tax on the privilege of existing as an entity in a state - not a tax on franchising a business. Some states levy a flat minimum, some compute on shares or capital, some have none. Delaware's is the famous one; California's $800 minimum is the expensive one.

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incFACTS, "Franchise tax - plain-English definition," FACTS repository v0.10.08 (data as of 2026-09-21), https://www.incfacts.com/glossary/franchise-tax/ (accessed 2026-09-21).

incFACTS, Franchise tax - plain-English definition, https://www.incfacts.com/glossary/franchise-tax/ (last visited 2026-09-21).

@misc{incfacts_glossary_franchise_tax_2026,
  author = {incFACTS (FACTS repository)},
  title = {Franchise tax - plain-English definition},
  year = {2026},
  url = {https://www.incfacts.com/glossary/franchise-tax/},
  note = {v0.10.08, data as of 2026-09-21, accessed 2026-09-21}
}

How to cite incFACTS · The accessed date is today's; the version and data-as-of date identify what you relied on.