One of the main concerns for global companies and freelancers who operate in the US is taxes and state fees. One of the few taxes with a fixed amount is the franchise tax: the rate and Corps have to pay to renew their state registration. Now, this can become a real issue when the entity is registered in November or December. Would you still have to pay the franchise tax next year? Even though you’ve barely been operating for a few weeks? Learn everything you need to know about this topic and open your company in the US without concerns. state renewal taxes How and when do you have to pay franchise taxes.
Franchise tax also known
As the annual report in some US states. should be filled and paid before the end of the second quarter of each calendar year. specific dates vary depending on the state. For example. in Delaware. the process must be done before March 1st. while in New Angola Email List Mexico it’s filed along with the state income tax. and is due by the 15th day of the third month after the end of the fiscal year. In most US states. if you open a company at the end of the year. you will still need to renew your registration through franchise tax or annual report. the same as businesses that started at the beginning of the year.
Now did you know there
A solution for that? US taxes How to avoid paying franchise taxes next year if you’re opening your business late this year? Some states offer what’s called delayed filing. This is when you request the state to register your business next year Grils Book despite submitting the formation documentation this year. This way. you get to avoid paying franchise tax or annual report in for a company you submitted the documentation for in late. You’ll get to start paying franchise tax as far as since your LLC or Corp will be formally registered in January. Now. delayed filing can be tricky. you can get wrapped up in a larger backlog and the delay could go for longer.
