Definitions for "Franchise tax"
Keywords:  privilege, llc, levy, imposed, charter
tax, usually regressive, imposed by a state government on corporations chartered in that state.
A income tax California corporations pay.
(in California) An annual tax imposed on a corporation, limited partnership or an LLC for the privilege of doing business in a limited liability form within the state.  It is typically measured by the earnings or amount of business done within the state. However California imposes a minimum annual franchise tax of $800 regardless of the amount of income (or loss) of the entity. To learn more about the California franchise tax, click here. General business corporation – see Corporation